JOE BIDEN
Individual Tax Rate:
Taxpayers with taxable income above $400,000,
increase tax rate to 39.6%.
Itemized Deductions:
Cap the tax benefit of itemized deductions at the 28% rate.
Capital Gains/Dividends:
Long-term capital gains (20%) tax increase to 39.6% (top ordinary income rate) for those with incomes greater than $1M.
Tax Credits:
Increase the Child Tax Credit to $8,000 ($16,000 for two or more children).
Education/Student Loans:
Special tax exclusion for student loan forgiveness.
Corporate:
Raise the flat rate of 21% to 28% and reinstate the corporate AMT on profits of more than $100M.
Estate Tax:
Revert back to $5M threshold. Eliminate “stepped up” basis to heirs of decedent.
Qualified Business Income Deduction (20%):
Phase out deduction if earn more than $400,000.
Real Estate:
Eliminate 1031 “Like Kind” exchanges.
DONALD TRUMP
Individual Tax Rate:
10% tax rate cut for middle-income taxpayers, lowering the rate of 22% to 15%.
Itemized Deductions:
Higher Standard Deductions as part of TCJA stay as is.
Capital Gains/Dividends:
Unclear on specifics, but intends to reduce top capital gains rates.
Tax Credits:
No changes.
Education/Student Loans:
No significant changes; expanding some tax credits for donations to state-sponsored scholarship organizations.
Corporate:
No changes.
Estate Tax:
No changes to date.
Qualified Business Income Deduction (20%):
No changes to date.