by Michael Lodge
The tax plans are out and changes as their teams look at how they can improve the economic situation of this nation. Forbes has just come out with an analyses comparing the two plans, written by Tony Nitti. To read the full story go to: FORBES In the next couple of days after I have looked at the tax issues of both candidates I will publish my own analyses. But lets go over what Forbes is seeing in the two tax plans of the candidates.
Please note, much of the information above was borrowed from the esteemed eggheads at the Tax Foundation, at www.taxfoundation.org.
As you can see, not much changes under the Clinton plan when compared to current law; that is, until you start pulling in more than three-quarters of a million dollars a year, in which case your tax bill will jump by nearly $80,000. And courtesy of the 4% surtax Clinton would add to taxpayers with income in excess of $5M, those taxpayers will see their tax bill jump by over $500,000.
The Trump plan offers tax savings at all income levels, with huge savings at the highest income levels resulting from the reduction in the top rate from 39.6% to 25%. And while all those negative numbers in the Trump column sure look appealing, try to keep in mind that in order for them to become a reality, we’re either going to have to cut spending (Fun Fact: We wont!), put another $12 trillion on the country credit card, or go deeper in debt to China.
Putting it all together, if you earn $100,000 a year, you’ve got about $5,500 at stake in the next election. If you make $300,000 per year, however, you could experience a $30,000 swing in your tax bill depending on who proves victorious in November.
Learn this information. And next fall, when you find yourself sealed in the voting cubicle and deciding whether you’d rather be free to compile an arsenal of automatic weapons or pee in whatever bathroom you choose, try to remember that there are tax considerations that also command your respect.