How the Trump and Clinton tax plans would affect Americans

(Summerary of AP article)

TAXES ON HIGHER INCOMES

TRUMP: He would cut the top income tax bracket to 33 percent from its current level of 39.6 percent. Republican House Speaker Paul Ryan has made the same proposal, which the conservative Tax Foundation said would help boost after-tax income for the wealthiest 1 percent of Americans by 5.3 percent. Trump updated his tax proposal in a speech last week in Detroit, and hasn't yet released many details. Tax experts haven't been able to evaluate his proposals as a result.

CLINTON: She is proposing several tax increases on wealthier Americans, including a 4 percent surcharge on incomes above $5 million, effectively creating a new top bracket of 43.6 percent. And those earning more than $1 million a year would be subject to a minimum 30 percent tax rate. She would also cap the value of many tax deductions for wealthier taxpayers. All the changes would increase taxes in 2017 for the richest 1 percent by $78,284, reducing their after-tax income by 5 percent, according to the Tax Policy Center.
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TAXES ON MIDDLE INCOMES

TRUMP: Would reduce the seven tax brackets in current law to three, at 12 percent, 25 percent and 33 percent. Using the Tax Foundation's evaluation of the House Republican plan, which includes the same brackets, the change would lift after-tax incomes for the bottom 80 percent of income earners — those earning less than about $195,000 a year — by just 0.2 percent to 0.5 percent.

CLINTON: Says she will not raise taxes on the middle class. Her current proposals would have little impact on the bottom 95 percent of taxpayers, according to the Tax Policy Center.
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CORPORATE TAX RATE

TRUMP: Would cut the corporate rate from its current 35 percent to 15 percent. He would also cut taxes on "pass-through" business income from partnerships such as law firms to 15 percent. More than two-thirds of "pass-through" income flows to the richest 1 percent of taxpayers, according to the liberal Center on Budget and Policy Priorities.

CLINTON: Would not change the corporate tax rate.
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"CARRIED INTEREST" LOOPHOLE

TRUMP: Managers for private equity firms and hedge funds can classify their investment profits as "carried interest" and pay capital gains taxes on their income at rates that can be as low as half the regular income tax rate. Trump says he would eliminate the loophole, but hedge fund and private equity managers would be able to pay even lower tax rates under his proposal to cut business taxes to just 15 percent.

CLINTON: Would eliminate the loophole and tax carried interest as ordinary income.
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ESTATE TAXES

TRUMP: Would eliminate the so-called "death tax" on that is currently levied on estates worth more than $5.45 million ($10.9 million for married couples).

CLINTON: Would increase the estate tax to 45 percent from 40 percent and apply it to more estates, starting with those worth $3.5 million ($7 million for married couples).

I strongly suggest reading the entire article on the Yahoo Financial page here:

http://finance.yahoo.com/news/conventional-tax-proposals-unconventional-us-082939987.html