Published: Fri, October 14, 2016
Economy | By Melissa Porter

Clinton proposes closing real estate loophole, not Trump

Taking into account the slower economy, Clinton's tax plan would raise only $663 billion over 10 years, it said. "Clinton has a significant tax increase" for those people, said Len Burman, a former Treasury official under President Bill Clinton who is director of the center, a joint project between two nonpartisan Washington, DC think tanks.

"In nearly every meaningful respect these plans are mirror images", said Len Burman, a former Treasury official under President Bill Clinton who is director of the centre, a joint project between two nonpartisan Washington think-tanks.

The analysis does not account for the possible economic effects of the tax plans, but the authors nonetheless predicted that Trump's plan would cut into the economy by by running up large deficits that cause interest rates to soar. The Policy Center hasn't estimated the price tag of Trump's new proposal, citing a lack of detail, but says some of its estimates are unsubstantiated.

Investment managers would pay higher taxes on the "carried interest" that makes up much of their income under Donald Trump's tax plan, said Wilbur Ross, the billionaire distressed-debt investor and Trump supporter. In the end, if you're making money on carried interest, you do better under Trump's proposed tax plans than you do now. He'd allow so-called pass-through firms to pay taxes at the lower 15 per cent rate. The statement also said that Clinton's tax plan "as revealed by WikiLeaks" is "open borders, open trade", which has nothing to do with taxes. However, the analysts noted that Clinton has proposed new spending that could offset some of the negative economic impact of high-end tax increases.

The Tax Foundation, which generally favors lower tax rates and more business-friendly policies, uses a model similar to one of the models employed by Congress' in-house tax team to evaluate tax changes.

The Republican presidential nominee would cut taxes by $6.2 trillion over the next decade, with 47 percent of all cuts next year going to the top 1 percent, the analysis found. Middle-income households would receive a tax cut averaging about $1,000, or 1.8 percent of their after-tax income and low-income households would get a tax reduction of about $100, boosting their after-tax income by 0.8 percent. But those in the top 0.1 percent would have their bill reduced by 14 percent, or $1.1 million. In the latest debate she tried to claim credit for all she has done for children, but what she has not done by refusing to support school vouchers, which allow parents to use public funds to pay for some or all of their child's private school tuition, overcomes whatever good she may have accomplished.

Hillary Clinton's proposed tax increases on people with high incomes and on businesses would constrain economic growth, leading to lower wages and about 697,000 fewer jobs, according to a right-leaning policy group's analysis. He'd slice individual income taxes across the board: the current seven brackets, which peak at 39.6 percent, would collapse into three tiers with a maximum 33 percent rate. "But the more you could keep everything at 15 per cent, the bigger the deal this is".

The Trump campaign has insisted it will create safeguards to ensure this does not happen, but has not explained how. She would also put a 28% cap on itemized deductions, which Cole says may be especially noteworthy.

The Tax Policy Center's new analysis found that Trump's proposals would focus on reducing tax on capital, which would encourage more work, investment and savings. Clinton would leave corporate tax rates alone, though she'd raise levies on US companies shielding overseas income, and would eliminate tax breaks for fossil-fuel producers.

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