Hillary's tax plan is non-specific to a degree at this point in
time. So I will present some of the details here that I have garnered
from her campaign site. For one, she intends to reform the tax code by
ending the carried interest loophole and implementing the "Buffett
Rule". What this means is that Capital Gains (money derived from
sources other than labor) taxes will be integrated into our regular income
taxes, thus eliminating two different taxes and merge them into one. This
allows the "Buffet Rule" to be put in place which taxes the total
income a person makes, from whatever source derived, thereby taxing people on
wall street more "effectively". Key note is that Republican
Candidates like Senator Marco Rubio and Senator Ted Cruz will do something
similar with their plans.
Hillary does want to cut taxes in other
areas though, such as keeping the $2,500 tax deduction on students, and an
additional 15% tax credit on businesses that share profits with their workers
on top of wages and wage increases. She also intends to remove loopholes
in corporate taxes that have encouraged businesses to send their money
overseas, and provide tax relief to small businesses. How all this is to
be done though is not clear with respect to what constitutes profit sharing and
other small details which would shine light on how these ideas would work.
Final Thought: So, much of what Hillary wants to
do is what the Republicans want to do as well, but in different ways.
Republicans like Cruz will create a flat tax, while Republicans like
Rubio will adjust the current income tax. However, the key difference is
that Hillary's plan targets people who make more than people who are considered
middle class. Ultimately though, her plan will complicate the tax code
more and encourage businesses to find other loopholes or to lobby for new ones.
So the net result is the same problems with the current tax code, but
with an us versus them mentality against the more successful in America further
integrated into it.
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