Tax Plans 2020

Election day is less than a week away. For any of you last minute voters and people who are on the fence & not sure about which candidate is best for you; I took the liberty of doing some research. I found a website https://taxfoundation.org/2020-tax-tracker that has been following all of the candidates proposed tax plans and explains them to you.

TRUMP

Repeatedly called for “Tax Cuts 2.0,” a self-claimed middle-class tax cut. Currently the plan involves reducing the 24% marginal tax rate on personal income to 15%.

Would make unspecified “permanent cuts to the payroll tax” and forgive deferred 2020 employee-side payroll taxes.

https://taxfoundation.org/2020-tax-tracker

BIDEN

Reverse the Tax Cuts and Jobs Act tax cuts for the wealthy by restoring the 39.6 percent top marginal tax rate, up from 37 percent.

Itemized Deductions

Cap the benefit of itemized deductions to 28 percent.

Expand several renewable-energy-related tax credits and deductions and end subsidies for fossil fuels.

Expand and make permanent the New Markets Tax Credit.

Establish a Manufacturing Communities Tax Credit.

Provide an $8,000 tax credit for individuals with children in child care.

Offer tax credits to small businesses for adopting workplace savings plans.

Expand the Earned Income Tax Credit to older workers.

Rates on Capital Gains and Dividends

Tax capital gains at the same rate as ordinary income for those earning more than $1 million.

Corporate Tax Rate

Raise the corporate income tax rate to 28 percent, up from 21 percent.

Create a 15% minimum book tax on firms with $100 million or more in net income that pay little to no federal income tax.

International Income

Double the tax rate on Global Intangible Low Tax Income (GILTI).

Payroll Taxes

Eliminate the income cap on Social Security taxes.

Estate Tax

Eliminate step-up in basis.

Other Taxes

Reduce incentives for tax havens, evasion, and outsourcing; ensure corporations pay their fair share; and close other tax code loopholes that reward wealth, not work.

Stabilize the Highway Trust Fund by securing new revenues.

Equalize the tax benefits of defined contribution retirement plans.

Disallow tax deductions for prescription drug advertisements.

https://taxfoundation.org/2020-tax-tracker

There you have it, you’ve heard the word taxes a lot, now you have the candidates plans. Make sure you make the choice that is best for yourself this Tuesday!

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