Tax plans of Trump/Cruz/Rubio vs. Hillary/Bernie

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The Tax Policy Center, a joint project of the liberal Urban Institute and Brookings Institution, analyzed the proposed tax plans of the 2016 presidential aspirants.
Below are the abstracts or summaries of the tax proposals of Hillary Clinton, Bernie Sanders, Donald Trump, Ted Cruz, and Marco Rubio. The contrasts between the Democrats and Republicans are stark:

  • The Republicans all propose to decrease taxes in some way or another — which would decrease tax revenue by trillions of dollars only if the economy remains anemic — and to increase incentives to work, save, and invest.
  • In contrast, the Democrats Hillary and Bernie both propose to increase all kinds of taxes, not just the income tax, although both claim it’s “the rich” who will be hit the most, with Hillary claiming that the top 1 percent would get nearly all of the tax increases. Like the good commie he is, Bernie promises the moon, claiming that the increased tax revenue could pay for universal healthcare, college education, and family leave, entirely ignoring the $20 trillion national debt.
  • By claiming to increase taxes mainly on “the rich,” Hillary and Bernie both promote class warfare and divisiveness, with Hillary being the most rabid by singling out the top 1% vs. the 99%. Since Hillary herself and her Wall Street backers (especially Goldman Sachs) precisely are the One Percent, it’ll be interesting to see if she and they would get hit with her proposed increased taxes. Call me a cynic and skeptic, but I doubt it.

The Republicans

Donald Trump’s Tax Plan

This paper analyzes presidential candidate Donald Trump’s tax proposal. His plan would significantly reduce marginal tax rates on individuals and businesses, increase standard deduction amounts to nearly four times current levels, and curtail many tax expenditures. His proposal would cut taxes at all income levels, although the largest benefits, in dollar and percentage terms, would go to the highest-income households. The plan would reduce federal revenues by $9.5 trillion over its first decade before accounting for added interest costs or considering macroeconomic feedback effects. The plan would improve incentives to work, save, and invest. However, unless it is accompanied by very large spending cuts, it could increase the national debt by nearly 80 percent of gross domestic product by 2036, offsetting some or all of the incentive effects of the tax cuts.

For details, see the -page report by Jim Nunns, Len Burman, Jeff Rohaly, and Joe Rosenberg, “Analysis of Donald Trump’s Tax Plan,” December 22, 2016.

Ted Cruz’s Tax Plan

Presidential candidate Ted Cruz’s tax proposal would (1) repeal the corporate income tax, payroll taxes for Social Security and Medicare, and estate and gift taxes; (2) collapse the seven individual income tax rates to a single 10 percent rate, increase the standard deduction, and eliminate most other deductions and credits; and (3) introduce a new 16 percent broad-based consumption tax. The plan would cut taxes at most income levels, although the highest-income households would benefit the most and the poor the least. Federal tax revenues would decline by $8.6 trillion (3.6 percent of gross domestic product) over a decade.

For details, see the -page report by Joe Rosenberg, James R. Nunns, Leonard E. Burman, and Daniel Berger, “An Analysis of Ted Cruz’s Tax Plan,” February 16, 2016.

Marco Rubio’s Tax Plan

Marco Rubio’s tax proposal would convert the federal income tax into a consumption tax by not taxing investment income of individuals and by converting the corporate income tax into a cash-flow consumption tax. It would replace most deductions and exemptions with a universal credit; eliminate estate taxes, the AMT, and all ACA taxes; and move the US to a territorial tax system. A new $2,500 child credit would aid families with children. Taxes would fall at all income levels, with high-income households benefiting the most. Revenues would decline by $6.8 trillion over a decade (assuming no change in economic growth).

For details, see the 50-page report by Elaine Maag, Roberton C. Williams, Jeffrey Rohaly, and James R. Nunns, “An Analysis of Marco Rubio’s Tax Plan,” February 16, 2016.

The Democrats

Hillary Clinton’s Tax Plan

Hillary Clinton proposes raising taxes on high-income taxpayers, modifying taxation of multinational corporations, repealing fossil fuel tax incentives, and increasing estate and gift taxes. Her proposals would increase revenue by $1.1 trillion over the next decade. Nearly all of the tax increases would fall on the top 1 percent; the bottom 95 percent of taxpayers would see little or no change in their taxes. Marginal tax rates would increase, reducing incentives to work, save, and invest, and the tax code would become more complex. The analysis does not address a forthcoming proposal to cut taxes for low- and middle-income families.

For details, see the 40-page report by Richard Auxier, Len Burman, Jim Nunns, and Jeff Rohaly, “Analysis of Hillary Clinton’s Tax Proposals,” March 3, 2016.

Bernie Sanders’ Tax Plan

Presidential candidate Bernie Sanders proposes significant increases in federal income, payroll, business, and estate taxes, and new excise taxes on financial transactions and carbon. New revenues would pay for universal health care, education, family leave, rebuilding the nation’s infrastructure, and more. TPC estimates the tax proposals would raise $15.3 trillion over the next decade. All income groups would pay some additional tax, but most would come from high-income households, particularly those with the very highest income. His proposals would raise taxes on work, saving, and investment, in some cases to rates well beyond recent historical experience in the US.

For details, see the 49-page report by Frank Sammartino, Len Burman, Jim Nunns, Joseph Rosenberg, and Jeff Rohal, “Senator Bernie Sanders’s Tax Proposals,” March 4, 2016.

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0 responses to “Tax plans of Trump/Cruz/Rubio vs. Hillary/Bernie

  1. I really appreciate this post. I have been reading about the tax plans of the various candidates, but I am glad to find something so concise. It is worth printing out for further references. I have some doubts about some of these plans both democrat and republican. I am afraid that Cruz’s flat tax of ten percent is going to hit the poorest and middle classes the hardest. Seniors may end up paying more taxes than they do now especially if deductions and credits are eliminated. Right now people get deductions for being elderly and there is a credit if one is blind. Also will we be able to purchase much with a 16 percent consumption tax. If this is added to the 17 percent sales tax already in effect in Mississippi, that we be a 33 percent tax. Evidently Bernie wants to tax everything. There is such a thing as the Law of Diminishing Returns, where taxes can be raised up to a point where you take in less revenue than before. And I have to smile at Hillary’s plan. Her plan evidently does not include reducing the taxes on Social Security, which was a gift of the Clinton administration about 20 years ago. Right now, you take half of your social security income, add it to your other income and if it is more than $25,000 your social security benefits are taxed. These days 25,000 is not much for a senior citizen to live on. In my opinion, if not eliminated the taxable amount should be raised. Again, accept my appreciation for the above article. It is something I am going to hold on to during the upcoming election.

  2. The “$20 trillion national debt” was borne in fraud and political corruption of the highest order. We The People owe zip on that fraud.

    • Precisely, and all too, too true! It –as is the Fed Res BUnco– is a fiction of the Satanic mega-bankers who’ve now enslaved 80% of the world in harness to create MORE wealth for the 1%!
      Only a reality-based economy such as Social Credit can redeem us from this evil –so pervasive that none dare speak its name– as it all the while kills us off, even as we enrich its insane schemes.
      I have and will continue to post articles on the value of Social Credit –as I’ve promised MomofIV and others here– as soon as at least three readers say they want this info.
      I’m NOT seeking to puff myself up or swamp readers w/my agenda: we ALL suffer under the lash of our Masters. I wish only to show that ‘another world was possible, and still can be’ BUT: We the People MUST demand it, or we might as well admit we are suicidal and part of the Anti-Christ movement now come over the Creation.

  3. I think the first thing we have to understand is that the government has been thoroughly corrupted by Keynesian economics. The next thing we have to understand is that we have been, and are, and will continue to be, living under an OLIGARCHY, and until that Oligarchy is brought to heel, no substantial solution to our problem can happen. The oligarchs will always write the tax laws and policies in their favor as they play their divide-and-conquer games.
    Nothing can happen until the principle of subsidiarity (I believe it is called) is re-established: The Federal Government MUST be PERMANENTLY REDUCED IN BUDGET AND SIZE. The Federal Government must NOT be permitted to handle affairs that common sense would dictate be handled at the state (and therefore, local) levels.
    I believe that Lyndon Johnson played a pivotal role in the Kennedy Assassination. But few people realize that the other permanent evil he introduced was Constitutional in nature, namely, that he succeeded in permanently usurping states’ rights, the action which has led to the Leviathan we have now. Ronald Reagan promised to defund the Left but did not, and the Bushes set about to grow Leviathan even larger. This is what the problem is, and until it is tackled, no tax plan can really work!

  4. Pingback: Tax plans of Trump/Cruz/Rubio vs. Hillary/Bernie | kommonsentsjane

  5. Notice none of the plans talk about eliminating the I.R.S., the collection agency for the N.W.O. , and the queen

    • Cruz hints at it with his 10% flat tax. Common sense would indicate that the IRS would become unnecessary with it. Also noted is that a drastic reduction in Government spending is conspicuously absent in all their plans,and THAT’S one of the MORE critical things in play here.

      • Not necessarily , because the home interest deduction will still be in place , ( I think ? ) , medical expenses that amount to over 7.5 or 8% of you income will still be in place , ( once again I don’t know his entire plan ) If they do stay in play , some entity will have to keep a watchful EYE on the filings . No cheating can be allowed , yea right !!!
        If you go with ” The Fair Tax ” that was proposed by John Linder , you would only pay tax when you spend beyond what it takes to run a household per month . With a ” pre-bate ” .
        Google ” John Linder / Fair tax ” and check it out . Income will not be taxed anymore if this plan was passed . That is the only way the I.R.S. WILL BE DISPOSED OF . And God knows that collection agency has to go the way of the T- Rex .

  6. First of all Bernie is an idiot. Coming from a previous and arrested protestor that was a draft dodger that lived off his family and the government and didn’t have a paying job until age 40. Seems to forget that tax money is also to be used for the military, Roads, bridges, etc.
    Hillary with balls to the walls is going to tax us stupid. She failed her medical plan in 93 and has a burr under her saddle. Everything Bill gave her to do, she failed. She is carrying a serious and demented grudge.
    If anyone really thinks she cares, they should remember, the higher taxes won’t effect her since she has her massive Clinton Foundation to support her since they only donate less than 15%.
    The gov. Needs to sell all the hundreds of empty buildings around the country to stimulate our income, then attack all the fraud and waste. For a full account Coburn wrote an excellent book.
    Lower taxes and that increase spending, everyone wins.
    As for the Republicans, I think they are poking around in the right direction, but need a lot of fine tuning yet.

  7. Glenn47, you’ve again nailed the crises in plain sight.
    Now, as Lenin asked, “What is to be Done?” and I say “Do unto the 1% as they’ve done to us”: eliminate ALL their rat hole tax evasions, ensure they pay a MINIMUM 15% tax on ALL their holdings every tax year, until the economies come into a balance of payments –foreign & domestic– until a truly free market [when was the last time you or I saw one?] settles its acounts internationally.
    Even when & IF it is done honestly [and it can be], it will be at least FIVE years until currencies align to their true net worth, such is the Satanic & parlous state of these matters at this time.
    God bless, and good night!

  8. Thanks, truckjunkie et al., for your upvotes. I can send anyone who requests it a FREE Proof Run copy of the recent best-selling ‘The Banking Swindle’ Money Creation and the State, by Kerry Bolton, whom I’m surprised has not had a fatal ‘accident’ since this came out in 2013, in London, England.

  9. Thank you Dr. Eowyn for this interesting post. God, help us!

    • Dear joandarc:
      As one of deep intelligence and awareness [a combination more rare than not!] I feel you’d be VERY interested by a FREE pdf Proof Run copy of the best-selling ‘The Banking Swindle: Money Creation and the State’, by Kerry Bolton, whom I’m surprised hasn’t had a fatal ‘accident’ since it came out in 2013, in London, England.
      Send an email address to mrat & it will be yours, moments after I read it.
      And all best to you, strong & valiant lady, who is a role model for my life when I weaken!
      PS: If you have a recipe for zucchini cake, please send that, as I just bought 2 lbs @ C$ .47 a pound, and my housemate’s gone on a carrot cake baking-binge, which is great, but after three of them it’s gotten stale, so to speak.


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