Hillary's Stance on Tax Reform
As of early fall, 2015 the leader in the polls on the Democratic side is former Secretary of State Hillary Clinton. Not far behind her, is candidate Bernie Sanders. However, much of what you hear published has to do with Ms. Clinton’s position on social issues—not what she has planned for the nation’s fiscal problems. If you dig deep, though, she has spoken out a bit about what she has in mind for the U.S’s tax situation. Like anything related to politics, it has caused much controversy. Here are a few things she has mentioned when it comes to her tax plans.
- No increases for those earning more than $250,000 – According to ontheissues.com, Hillary Clinton will roll back taxes on those that earn more than $250,000 to the rates they were paying in the 1990’s. This is her commitment—even if the economy is weak.
- She would raise taxes on capital gains – Time Magazine reports that short-term capital gains would be taxed at a higher rate than they are now, but that the tax rate would be on an overall sliding scale that would drop at a staggered rate. This would nearly double capital gains rate during the second year.
- Supporters state that her plan would only affect the top 5 percent of wage earners—and thus be a good thing for the economy as a whole.
- Detractors state that it would create a stagnation of the economy because people will hold on to investments for longer than they have in the past—since they want to avoid the high rates in the first two years.
- Abolish the 'Cadillac Tax' on health plans - "Too many Americans are struggling to meet the cost of rising deductibles and drug prices. That's why, among other steps, I encourage Congress to repeal the so-called Cadillac Tax, which applies to some employer-based health plans, and to fully pay for the cost of repeal."
While there hasn’t been much released regarding what Hillary has planned for income taxes, one can expect that she will want to keep the status quo. However, as we get closer to the election season, there will likely be more released from her camp about what she has planned for the economy as a whole and what she has in mind to help reduce our current budget deficit—ideally without putting too big of a tax burden on the country as a whole.