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2016 presidential candidates on taxes

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For information about domestic policy under the Trump administration, click here.

This page was current as of the 2016 election.

The nation’s tax policy has been a divisive issue in recent elections and 2016 was no exception.

Much of 2016's tax policy was a carry-over from the early 2000s. George W. Bush's administration phased in temporary but significant income tax cuts and reduced taxes on investment income. Barack Obama's early attempts to end some of the Bush-era tax cuts in the late 2000s were met with strong resistance because of the economic downturn. As a result, in 2013, the Obama administration indefinitely extended nearly all of the Bush tax cuts that were set to expire. These permanent tax cuts limited Obama's tax code reform efforts; however, his administration did manage to raise taxes on the highest-earning households and enact temporary tax breaks for middle-income earners. These tax breaks were set to expire at the end of 2017, less than one year after the winner of the 2016 presidential election took office.[1][2]

See below the tax policies and plans that were put forward by the 2016 presidential and vice presidential candidates and their respective party platforms.

Interested in reading more about the 2016 candidates' economic and fiscal proposals?
Ballotpedia also covered what the candidates said about budgets, Wall Street and banking policy, trade, and federal assistance programs.

OVERVIEW OF CANDIDATE POSITIONS
  • Hillary Clinton planned to raise taxes on the top 1 percent of earners—those earning more than $732,000 a year—while largely leaving tax rates the same for taxpayers with smaller incomes. Clinton's tax plan also included eliminating tax breaks for companies that send jobs overseas and reinvesting revenue raised from fixing the corporate tax code in projects that spur economic growth and job creation.
  • Donald Trump supported significant business tax cuts, reducing the number of income tax brackets, and cutting taxes at all income levels, with the largest benefits, in dollar and percentage terms, going to the highest-income households.
  • Jill Stein wanted a more progressive tax system and supported tax reform that would have helped create jobs, economic efficiencies, and innovation within the small business community. She also would have eliminated loopholes and other exemptions that favored corporate and wealthy interests over tax justice.
  • Gary Johnson proposed eliminating income and corporate taxes and replacing them with a federal consumption tax.

    • Democratic ticket

    Democratic Party Hillary Clinton

    caption
    • Hillary Clinton expanded her tax policy to create three new tax brackets for large estates: a 50 percent rate for estates valued above $10 million per person, a 55 percent rate for estates above $50 million per person, and a 65 percent rate for those with estates above $500 million per person. “In 2014, just 223 estates with a gross value exceeding $50 million filed taxable estate-tax returns, according to the Internal Revenue Service,” The Wall Street Journal reported.[3]
    • Clinton proposed a tax plan for small businesses in a conference call with small business owners on August 22, 2016. She proposed a new standard tax deduction for small businesses and additional deductions for start-ups. “I believe when you succeed, families thrive and our nation prospers. But I also know that in lots of ways, the odds are stacked against too many of you too many times. It’s clear that big corporations get a lot of the breaks. It’s much harder for you to get a loan, to file taxes, to offer health care to your workers,” Clinton told listeners on the call.[4]
    • Clinton talked tax policy at a rally in Cleveland on August 17, 2016, highlighting both her proposals and those of her opponent’s, Donald Trump. “We’re going to tax the wealthy who have made all of the income gains in the last 15 years. The superwealthy, corporations, Wall Street, they’re going to have to invest in education, in skills training, in infrastructure,” said Clinton. Commenting on Trump’s proposal to eliminate the estate tax, she said, “So if you believe that Donald Trump is as wealthy as he claims—we can’t say that for sure, but let’s assume it—he would, by eliminating the estate tax, save the Trump family $4 billion—and do absolutely nothing for 99.8% of all Americans.”[5][6]
    • In an interview with Reuters on June 9, 2016, Clinton said that she planned to introduce her economic package, including Wall Street reform and tax reductions for the middle class, in her first 100 days in office.[7]
    • According to a study conducted by the nonpartisan Tax Policy Center in 2016, “Clinton’s tax plan would raise taxes on the 1 percent by an average of $78,000 per person while keeping taxes for the rest of Americans largely the same.” In addition, her “plan would generate $1 trillion in additional revenue for the government over the first decade and an additional $2 trillion over the next 20 years. Yet three-quarters of those additional funds will come from the top 1 percent of earners. … The top 1 percent — those who earn more than $732,000 a year — would see their taxes increase by an average of $78,284 in 2017… The top 0.1 percent, or those with incomes of over $3.8 million, would see their taxes increase by an average of $519,741. The bottom 20 percent of earners, or those making $23,000 or less, would see their taxes go up by $4 a year in 2017. The middle quintile, or those making $80,000 to $142,000, would see their taxes go up by $44 a year. And the top 20 percent, who make $209,000 or more, would see an average tax hike of $4,527.”[8]
    • Read more of Hillary Clinton's public statements on taxes.

    Democratic Party Tim Kaine

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    • In July 2013, Kaine sent a letter to the Senate Finance Committee, laying out his priorities for comprehensive tax reform. Writing the letter, Kaine drew upon his own experience working for his father's small business, serving as managing director of a law firm, and tackling tax and economic issues as Richmond's mayor and Virginia's governor. He also asked Virginia stakeholders for their recommendations for making the tax code fairer and more efficient. Kaine wrote, “We need a tax code that is simpler and more predictable. The code should be pro-growth and make us globally competitive. It needs to produce sufficient revenue to support a smart federal budget and help America deal with a long-term fiscal imbalance.” Kaine continued, “I strongly believe that the recently passed Senate Budget offers an excellent template for tax reform.” He also wrote, "The Senate Budget promotes economic growth, stabilizes the debt trajectory, and achieves credible deficit reduction in accord with recommendations made by numerous economists and commissions, including Simpson/Bowles and Domenici/Rivlin. Congress has made some progress in reducing spending and raising revenue, and deficit projections are declining as a result. But there is more to do.”[11]
    • Running for the U.S. Senate in 2012, Kaine supported keeping tax rates the same for those earning less than $500,000 a year while allowing Bush-era tax cuts to expire for those with incomes over $500,000.[12]
    • During a debate on September 20, 2012, with George Allen, his Republican challenger in the Senate race, Kaine said he would be open to a proposed minimum federal income tax, but did not express support for raising taxes for everyone. According to Kaine for Virginia Communications Director Brandi Hoffine, Kaine cut taxes for Virginians with the lowest incomes while governor of the commonwealth.[13]
    • In December 2009, during his last full month as governor of Virginia, Kaine proposed raising state income tax rates for all tax brackets by 1 percentage point to generate $1.9 billion to combat the effects of the Great Recession on the state's economy. The proposal also called for eliminating the state's personal property tax on vehicles, which would save Virginia taxpayers $650 million and result in an annual tax increase of $1.25 billion. The proposal was defeated shortly after Kaine left office.[14]
    • In January 2006, while governor of Virginia, Kaine proposed a plan to raise about $1 billion a year for transportation through taxes on auto insurance and vehicle purchases and increasing car registration fees. According to The Washington Post, the plan would have generated close to $4 billion over four years. Kaine's tax proposal was rejected by the state legislature.[14][15]
    • Read more of Tim Kaine's public statements on taxes.

    Republican ticket

    Republican Party Donald Trump

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    • Trump announced a revised tax plan on August 8, 2016. His first tax plan, announced on September 28, 2015, would have reduced the highest individual income tax rate from 39.6 percent to 25 percent. The revised plan sets the top individual income tax rate at 33 percent. The new plan reduces the number of income tax brackets from seven to three: 12 percent, 25 percent, and 33 percent. Trump had previously proposed income tax brackets set at 10 percent, 20 percent, and 25 percent. A report by the Committee for a Responsible Federal Budget showed that Trump's first tax plan would have cost $9.25 trillion over a decade. According to CNN, Trump's revised tax plan aligns with House Speaker Paul Ryan's policy agenda.[16][17][18]
    • Trump gave an economic policy speech in Detroit on August 8, 2016, where he unveiled several new proposals, including reducing the number of tax brackets from seven to three. He also proposed making childcare costs tax-deductible, placing a moratorium on new federal agency regulations, ending the death tax, renegotiating the North American Free Trade Agreement, and renewing the Keystone XL pipeline project.[19][20]
    • Trump announced a new tax proposal on August 8, 2016, that would allow parents to deduct the average cost of childcare expenses. “We don’t want it to be an economic disadvantage to have children,” an aide said, according to Reuters. Trump did not provide specifics on how he would calculate average childcare expenses, what expenses would be eligible, or what costs the federal government would incur under the plan. Trump said plan details are forthcoming.[21][22]
    • Politico reported on May 11, 2016, that Trump’s presidential campaign reached out to CNBC host Larry Kudlow and Heritage Foundation analyst Stephen Moore to consult on how to revise Trump’s tax platform and reduce the cost. According to Kudlow, the new plan he devised would increase the federal deficit by $3.8 trillion rather than $10 trillion, but Trump has not yet approved the revisions.[23]
    • In an interview with NBC’s Chuck Todd which aired on May 8, 2016,Trump discussed tax policy. He said, "The thing I'm going to do is make sure the middle class gets good tax breaks. Because they have been absolutely shunned. The other thing, I'm going to fight very hard for business. For the wealthy, I think, frankly, it's going to go up. And you know what, it really should go up. … But the middle class has to be protected. The rich is probably going to end up paying more. And business might have to pay a little bit more [than his proposal due to negotiations with Democrats]. But we're giving a massive business tax cut.”[24]
    • In an interview on January 24, 2016, Donald Trump said that he tries to minimize his personal taxes because he does not approve of how the government spends tax dollars. "I try to pay as little tax as possible, because I hate what they do with my tax money. I hate the way they spend our money, the way they give it to Iraq, the way they give it to Iran,” said Trump.[25]
    • The Tax Policy Center released its analysis Trump’s tax platform on December 22, 2015. According to the nonpartisan think tank, “His proposal would cut taxes at all income levels, although the largest benefits, in dollar and percentage terms, would go to the highest-income households. The plan would reduce federal revenues by $9.5 trillion over its first decade before accounting for added interest costs or considering macroeconomic feedback effects. The plan would improve incentives to work, save, and invest. However, unless it is accompanied by very large spending cuts, it could increase the national debt by nearly 80 percent of gross domestic product by 2036, offsetting some or all of the incentive effects of the tax cuts.”[26]
    • In a statement on November 23, 2015, Trump said it was “disgusting” that the pharmaceutical firm Pfizer would relocate its headquarters overseas as part of a merger with Allergan. "The fact that Pfizer is leaving our country with a tremendous loss of jobs is disgusting,” he said. The move is known as a tax inversion and occurs when an American-based company merges with a foreign firm and the new combined company sets up headquarters abroad for the purposes of lowering its U.S. tax bill.[27]
    • Trump unveiled his tax policy on September 28, 2015. According to The Wall Street Journal, Trump’s platform would remove the federal income tax for individuals earning less than $25,000 and couples earning less than $50,000, reduce the highest individual income tax rate from 39.6 percent to 25 percent, and cut corporate taxes to no higher than 15 percent.[28]
    • During September 2015, the Center for Tax Justice claimed Trump's tax plan would reduce tax revenues by $9 trillion over 10 years. the Tax Foundation similarly estimated his plan would cost $10 trillion over the same time period. Trump's campaign maintained that the plan was designed to be "revenue neutral."[29]
    • In an interview with Bloomberg on August 26, 2015, Trump said he would “simplify” the tax code. “I would take carried interest out, and I would let people making hundreds of millions of dollars-a-year pay some tax, because right now they are paying very little tax and I think it's outrageous. I want to lower taxes for the middle class,” Trump said.[30]
    • Appearing on CBS’ Face the Nation on August 23, 2015, Trump said hedge fund managers were “getting away with murder” and should pay higher taxes. “They're paying nothing and it's ridiculous. I want to save the middle class. The hedge fund guys didn't build this country. These are guys that shift paper around and they get lucky,” Trump said.[31]
    • In a June 2015 interview on MSNBC, Trump said he would nominate Carl Icahn, Henry Kravis or Jack Welch to the office of Secretary of the Treasury.[32]
    • In his 2011 book, Time to Get Tough, Trump outlined a five-part tax plan that defined four income tax brackets determining whether you pay 1 percent, 5 percent, 10 percent or 15 percent of your income. The plan also called for the end of the estate tax, a lower tax on capital gains and dividends, the elimination of corporate taxes and a 20 percent import tax.[33]
    • Trump called a flat tax "unfair to the poor" and "unfair to workers" in his 2000 book, The America We Deserve. Trump stated, "Only the wealthy would reap a windfall, because a flat tax would allow them to cash in interest payments and capital gains without paying personal income taxes."[34]
    • In 1999, Trump proposed a one-time net worth tax of 14.25 percent on individuals and trusts worth more than $10 million. He asserted that this tax would raised enough money to wipe out the national debt, which at the time was $5.66 trillion.[35]
    • Read more of Donald Trump's public statements on taxes.

    Republican Party Mike Pence

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    • In 2014, The Cato Institute gave Mike Pence a fiscal grade of "A." According to the report, "Mike Pence of Indiana has been a champion tax cutter, and he has held the line on spending. ...In 2013 he proposed a 10 percent cut in individual income tax rates, and the legislature agreed to 5 percent. The income tax rate will be phased down from 3.4 to 3.23 percent by 2017. He also approved a repeal of Indiana’s inheritance tax. In 2014 he signed into law a corporate income tax rate cut, adding to the reductions made by the prior governor Mitch Daniels. The rate had been scheduled to fall to 6.5 percent in 2015. Pence approved a further reduction to 4.9 percent, to be phased in by 2021. Pence also targeted property taxes on business equipment for reform."[37]
    • Pence commented on property taxes in his 2014 State of the State address. He said, "This tax is especially damaging because it makes it harder for Hoosier businesses to grow by directly taxing any investments they make in equipment. Taxing equipment and technology in a state that leads the nation in making and creating things just doesn’t make sense. And it looks like our neighboring states have figured that out. Ohio and Illinois don’t have a business personal property tax, and Michigan lawmakers just voted to phase theirs out. He signed off on a plan to phase out property taxes on business equipment over time. It allows local governments to end property taxes on new business equipment, while also allowing them to exempt businesses that have less than $20,000 of equipment."[37]
    • In 2014, Pence signed SB176, which authorized "eligible counties to fund approved public transportation projects through various parts of the local option income tax rates that are available under current law for other purposes." A referendum had to be passed in order for the tax to be imposed.[38]

    Green ticket

    Green Party Jill Stein

    Jill-Stein-circle.png
    • According to Jill Stein's 2016 campaign website, she supported making "Wall Street, big corporations, and the rich pay their fair share of taxes."[40]
    • In a February 2012 Forbes interview, Jill Stein said a wealth tax for both concrete and intangible assets would be "interesting," but the Green Party had not prioritized it in its tax reform platform. Stein also said a "blanket land tax" would be a "real liability."[41]
    • According to Stein's 2012 presidential campaign website, she supported rewriting "the entire tax code to be truly progressive with tax cuts for working families, the poor and middle class, and higher taxes for the richest Americans" and creating "a 90% tax on bonuses for bailed out bankers."[42]
    • Read more of Jill Stein's public statements on 2016 campaign issues.

    Green Party Ajamu Baraka

    captin




    Libertarian ticket

    Libertarian Party Gary Johnson

    Gary-Johnson-(New Mexico)-circle.png
    • During an interview on June 6, 2016, Gary Johnson said that as president he would eliminate the Internal Revenue Service (IRS) and other federal agencies if Congress sent him legislation to do so. Johnson said, "If I could wave a magic wand, we would eliminate income tax, we would eliminate corporate tax, we would abolish the IRS, and we could replace all of it with one federal consumption tax. If we had zero corporate tax in this country, tens of millions of jobs would get created in this country for no other reason.”[44]
    • In a February 2012 op-ed for The Washington Times, Gary Johnson advocated for the elimination of income, capital gains and payroll taxes. In their place, Johnson said he would implement a "kind of a national sales tax called the Fair-tax." He wrote, "Some think the Fair-tax is regressive, but in fact it’s progressive - taxing the wealthy more than the poor. Fair-tax issues a 'prebate' for families to spend on food, clothing, transportation, medical care or whatever they want to spend it on - it’s their money. Undocumented immigrants will pay their taxes if they want to buy anything. They need a Social Security card to receive a prebate, so the incentive is for immigrants to get themselves on the books as fast as possible."[45]

    Libertarian Party Bill Weld

    William-Weld-circle.png
    • Weld cut taxes 21 times and permitted no tax increases while governor of Massachusetts from 1991 to 1997 despite a Democratic-controlled state legislature.[48]
    • According to a 1994 report from the Cato institute, “Weld cut spending, balanced the budget, improved [Massachusetts'] bond rating, and cut numerous taxes. Even with a Democratic legislature, Weld has a stunningly successful fiscal record.”[48]
    • Weld inherited a $1 billion deficit when he became governor of Massachusetts in January 1991. According to the Cato Institute, "Weld balanced the budget in his first year by slashing state expenditures by $600 million—a 3 percent real cut—by shunning all new taxes, and by repealing a sales tax on services that had been enacted in December 1990."[49]
    • Read more about Bill Weld.


    Withdrawn candidates

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    2016 Presidential Candidates on Taxes News Feed

    See also

    External links

    Footnotes

    1. ↑ The Bookings Institution, "Bush Administration Tax Policy: Introduction and Background," September 13, 2004
    2. ↑ Bloomberg.com, "Bush Tax Cuts Persist 14 Years Later, Bedeviling Obama’s Plans," January 28, 2015
    3. ↑ The Wall Street Journal, "Hillary Clinton Proposes 65% Top Rate for Estate Tax," September 22, 2016
    4. ↑ HillaryClinton.com, "In Small Business Tele-Town Hall, Hillary Clinton Contrasts Her Policy Agenda with Donald Trump’s Record of Putting Himself First, Leaving Small Businesses Hanging," accessed August 22, 2016
    5. ↑ The Wall Street Journal, "Hillary Clinton Takes Shot at Trump’s Plan to Repeal Estate Tax," August 17, 2016
    6. ↑ The New York Times, "Hillary Clinton Twists the Knife in Donald Trump’s Tax Proposals," August 17, 2016
    7. ↑ Reuters, "Obama is 'fired up' for Clinton as Democrats seek to unify party," June 9, 2016
    8. ↑ CNBC, "Top 1% would see $78,000 tax hike under Hillary," March 3, 2016
    9. ↑ 9.0 9.1 9.2 9.3 Note: This text is quoted verbatim from the original source. Any inconsistencies are attributable to the original source.
    10. ↑ Democratic Party, "The 2016 Democratic Party Platform," accessed August 23, 2016
    11. ↑ Tim Kaine United States Senator for Virginia, "Kaine Lays Out Priorities for Comprehensive Tax Reform in Letter to Finance Committee," July 31, 2013
    12. ↑ Time, "What Clinton’s Choice of Tim Kaine Means for Your Money," July 22,2016
    13. ↑ Augusta Free Press, "Allen TV ad hits Kaine on debunked tax claim," September 25, 2012
    14. ↑ 14.0 14.1 Politifact Virginia, "Donald Trump says Tim Kaine proposed $4 billion tax increase during first week as governor," July 28, 2016
    15. ↑ FactCheck.org, "Kaine vs. Pence on Unemployment," August 5, 2016
    16. ↑ The Wall Street Journal, "Trump Plan Cuts Taxes for Millions," September 28, 2015
    17. ↑ CNN, "Trump revises his tax plan, raises top rate," August 9, 2016
    18. ↑ Committee for a Responsible Federal Budget, "What Donald Trump Can Do to Improve His Tax and Spending Policies," July 19, 2016
    19. ↑ Bloomberg, "Trump Aims to Reset With Revised Tax Plan, Curb on Regulations," August 8, 2016
    20. ↑ CNBC, "Holding his tongue through protests, Trump goes at Clinton for tax plan," August 8, 2016
    21. ↑ Reuters, "Trump to propose deduction on childcare spending: aide," August 8, 2016
    22. ↑ The Washington Post, "The problem with Donald Trump’s plan for child care," August 8, 2016
    23. ↑ Politico, "Trump launches tax plan rewrite," May 11, 2016
    24. ↑ NBC News, "Transcript: Meet the Press," May 8, 2016
    25. ↑ The Los Angeles Times, "Donald Trump: 'I try to pay as little tax as possible'," January 24, 2016
    26. ↑ Tax Policy Center, "An Analysis of Donald Trump's Tax Plan," December 22, 2015
    27. ↑ Reuters, "U.S. Republican Trump calls Pfizer deal to move tax base overseas 'disgusting,'" November 23, 2015
    28. ↑ The Wall Street Journal, "Trump Plan Cuts Taxes for Millions," September 28, 2015
    29. ↑ CNN Politics, "Donald Trump's tax plan carries big price tag," October 1, 2015
    30. ↑ Bloomberg Politics, "Donald Trump Says He Wants to Raise Taxes on Himself," August 26, 2015
    31. ↑ Business Insider, "Donald Trump: 'Hedge fund guys are getting away with murder,'" August 23, 2015
    32. ↑ Fortune, "Carl Icahn to Donald Trump: I'm not hired," June 19, 2015
    33. ↑ Trump, Donald. (2011). Time to Get Tough. Washington, DC: Regnery Publishing. (pages 64-65)
    34. ↑ Trump, Donald. (2000). The America We Deserve. Los Angeles, CA: Renaissance Books. (page 186)
    35. ↑ CNN, "Trump proposes massive one-time tax on the rich," November 9, 1999
    36. ↑ GOP.com, "Republican Platform 2016," July 18, 2016
    37. ↑ 37.0 37.1 Cato Institute, "Fiscal Report Card on America's Governors: 2014," accessed January 2, 2015
    38. ↑ Indiana.gov, "SB176," accessed April 1, 2015
    39. ↑ Congress.gov, "H.R.436," accessed April 1, 2015
    40. ↑ Jill Stein for President, "Power to the People Plan," accessed July 12, 2016
    41. ↑ Forbes, "Jill Stein Meets Henry George," October 16, 2012
    42. ↑ Jill Stein for President, "Issues," accessed July 6, 2015
    43. ↑ The Green Party of the United States, "Platform," August 6, 2016
    44. ↑ The Hill, "Libertarian Gary Johnson: I'd eliminate NSA, IRS if elected," June 6, 2016
    45. ↑ The Washington Times, "Johnson: Let's get America moving again," February 2, 2012
    46. ↑ Scribd, "Club for Growth: 2012 Presidential White Paper #9," July 21, 2011
    47. ↑ Libertarian Party, "Libertarian Party Platform," May 27, 2016
    48. ↑ 48.0 48.1 Johnson-Weld 2016, "About Bill Weld," accessed August 10, 2016
    49. ↑ Cato Institute, "A Fiscal Policy Report Card on America Governors: 1994," accessed August 10, 2016
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