As it gets closer to election time, presidential candidates are voicing their tax plans for the American public to stew over. Tax plans on the democratic side seem to be raising taxes across the board. Most republican candidates are simply making adjustments to existing tax brackets.
Individual Income Tax Plans
Ted Cruz seems to have a tax plan that will help more Americans with poverty-level income and those barely making ends meet. He has proposed a 10-percent flat tax on income. Donald Trump and Marco Rubio have established three tax brackets, taxing high earners the most.
Hillary Clinton plans no changes other than a 4-percent surtax for those earning $5 million or more. Bernie Sanders plans to raise taxes with the lowest bracket being 37-percent.
Republicans plan to eliminate estate taxes altogether and democrats plan large increases on estate taxes.
Business Income Taxes
On a corporate level, there is not much discussion regarding taxes. Many candidates have no specific proposal at all. The republican candidates are the only ones with some kind of corporate tax plan. Both Trump and Rubio have proposed lowering corporate taxes. Cruz plans to replace the income tax with a 16-percent business transfer tax.
It is not easy to know precisely which tax plan is best for the American people taken as a whole. Those who are barely making ends meet would not benefit from increased taxes. Lowered income taxes would mean that the economy could flourish because more Americans would have a few extra dollars in their pockets to spend on entertainment, travel and in local economies.
Image credit: DonkeyHotey