My opinion on the Clinton Plan.
Income Tax Increase - $350 Billion: Clinton has proposed a $350 billion income tax hike in the form of a 28 percent cap on itemized deductions.
Does not go far enough. There are far too many deductions and it makes it complicated for Americans. I looked at the American tax code once, and found that it was even more complicated than the Danish one.. which is crazy.... remember Denmark is a high tax country, with lots of stupid rules and paper work. And yet our tax system is far more simple and is in fact done by the tax man for us. Most people just have to approve the tax papers each year!
Business Tax Increase -- $275 Billion: Clinton has called for a tax hike of at least $275 billion through undefined business tax reform. According to the Clinton campaign document, "Hillary will fully pay for these [Infrastructure] investments through business tax reform."
Well if she is closing loopholes then I am all for it. It is the nr. 1 problem. Yes you have 32% (or whatever it is) corporation tax, but actual burden for companies is far far far lower due to the loopholes and ability to evade paying taxes. There is no doubt that the business tax code needs ripping up and replaced... sure lower the % to say 25 or even 20.. it wont matter much unless the loopholes are stopped. Why? Because most big corporations either dont pay any taxes or pay in the single digit range. Basically the present code is pro big business and hurts innovation and small/medium businesses that cant afford the expensive corporate lawyers and accountants.
"Fairness" Tax Increase -- $400 Billion: According to her published plan,Clinton has called for a tax increase of "between $400 and $500 billion" by "restoring basic fairness to our tax code." These proposals include a "fair share surcharge," the taxing of carried interest capital gains as ordinary income, and a hike in the Death Tax.
Only way to get fairness in the US tax system, is to gut loopholes and ability to deduct so much. As for the Death Tax.. it is already so insane high so what is the point. Get rid of it and replace it with something better, like 30% over 1 million dollars.
Capital Gains Tax Increase -- Clinton has proposed an increase in the capital gains tax to counter the "tyranny of today's earnings report." Her plan calls for an overly complex, byzantine capital gains tax regime with six brackets for those whose total taxable income puts them in the top 39.6 percent bracket. Her campaign has not said how much this will increase taxes.
Well it is a plan.. but I would remove Capital gains all together. All income gotten from "capital gains" should be taxed at the personal or corporation tax. But that won fly in either party I suspect.
Tax on Stock Trading -- Clinton has proposed a new, unquantified tax on stock trading. The tax increase would only further burden markets by discouraging trading and investment. Inevitably, costs associated with this new tax will be borne by millions of American families that hold 401(k)s, IRAs and other savings accounts.
If it is what I think it is, then it is a brilliant idea. Let the financial institutions pay for their own mistakes, by putting on a 1-3% tax per transaction and that money be put in a fund for bailouts. It is what the EU has wanted to do since the crisis started. And yes, the politicians can not borrow from it to cover up deficits. It might actually help 401(k)s and saving accounts, as it would discourage high frequency trading and the risk involved with that. The markets might actually act as they should, with such a tax. Will it happen in the US? Doubtful, financial institutions own far too many congressmen to make it realistic.
"Exit Tax" - Rather than reduce the extremely high, uncompetitive corporate tax rate, Clinton has proposed a series of measures aimed at inversions including an "exit tax" - on income earned overseas. The term "exit tax" is used by the campaign itself. This proposal would completely fail to address the underlying causes behind inversions. Her campaign document describing this proposal says it will raise $80 billion in tax revenue, but claims some of the $80 billion will be plowed into tax relief. It does not specify a dollar amount.
Stupid move, but I understand it. Instead she should focus on getting rid of the tax havens around the world and in the US, that cause the problem in the first place. Had the US corporation tax rate been around average, and no tax haven ability... then there would be no problem. Instead, both the US, others and especially the UK protect tax havens under their own control.
