Taxpayers pay close attention when politicians put forth tax proposals during an election year, and this year’s presidential campaign is no exception.
The two-party presidential nominees have significantly different views on many topics, including tax reform. Chris Hennessey talks about tax proposals offered by the candidates and their potential impact on taxpayers.
- Donald Trump’s tax proposal would reduce the number of tax brackets. He also proposes a process to repatriate corporate profits held outside of the United States, at a much lower rate over a multiyear period.
- Hillary Clinton’s plan would retain the current tax brackets and increase the tax rate for individuals with income higher than $1 million. She also proposes limiting deductions for high earners, reducing the estate tax exemption to its 2009 level, and including a separate gift tax exemption of $1 million.
While candidate proposals may have some impact on the markets in the near term, any post-election tax reform or program changes will largely be driven by Congress.
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For informational purposes only. Not an investment recommendation.
This information is not meant as tax or legal advice. Please consult with the appropriate tax or legal professional regarding your particular circumstances before making any investment decisions. Putnam does not provide tax or legal advice.
