Now that the election process is to the point where the presidential nominees of the two major parties appear clear, it’s a good time to start considering their various tax plans. Although things can change, details will have to be determined and Congress will have its say, below are some of the current proposals from the two presumptive candidates.
Individual Income Tax
Donald Trump proposes just four brackets; Hillary Clinton proposes eight brackets.
Clinton caps itemized deductions at 28% of the deduction. Trump phases out all deductions except for the charitable deduction and the mortgage interest deduction.
The Alternative Minimum Tax (AMT)
Clinton creates a new minimum 30% rate on individuals earning over $1 million, while Trump eliminates the AMT.
Corporate Income Tax
Trump lowers the top corporate rate to 15%; Clinton has no specific proposal at this time.
Clinton increases the top estate tax rate to 45% and lowers the estate tax exclusion to $3.5 million. Trump eliminates the estate tax.
Effect of Plans on the Deficit
And as a final note, you may also want to consider how these proposals will likely impact our federal deficit. Trump’s plan is projected to increase the deficit by $9.5 trillion over the next 10 years; Clinton’s is estimated to reduce the deficit by $1.2 trillion over that same period of time.
We take great pride in helping to educate our members and customers through our many publications. The latest example is the newest edition of the Indiana Taxation Handbook, a valuable resource for those who deal with Indiana tax issues.
As a result of changes in tax law and policy over the last two legislative sessions, new and revised sections of the Indiana Tax Handbook: 2013-14 Edition include:
Elimination of the Indiana Inheritance Tax
Reduction in the Indiana Corporate Income Tax
New consolidated filing options for Indiana businesses
Overview of the new rolling reassessments for real property in Indiana
Adjustments to the property tax appeals process, and new obstacles that must be overcome in appealing property tax assessments
Impact of the automatic taxpayer refunds, and where Indiana taxpayers will receive savings
This informative publication is authored by attorneys at Ice Miller, LLP and is available for $111.75 for Indiana Chamber members and $149 for non-members. Order your copy today by calling (800) 824-6885 or through our web site.
Our final legislative poll question, at least for a while, asked for your biggest "victory" of the 2011 Indiana General Assembly session.
Education led the way, with school choice scholarships and teacher performance-based pay tying for the top spot at 27%. The two "business" choices — corporate income tax reduction and unemployment insurance reform — each collected 12% of the vote. "Other," with a variety of answers, was in the middle at 23%.
While not legislative, we can’t help but go political with our new question. With Mitch Daniels not running, who is your favorite for the 2012 GOP presidential nomination? Check out the choices (top right of the page) and share your opinion.