The Trump Tax Proposal
- Overall calls for a federal tax schedule with four brackets:
- 0%
- 10%
- 20%
- 25%
- It would also eliminate the marriage penalty and the Alternative Minimum Tax (AMT)
- The charitable giving and mortgage interest deductions would remain in the tax code.
- Eliminates the death tax.
- Calls for offsets to “pay for the tax cuts.”
- Eliminate loopholes for the exceptionally high income earners and phase out itemized deductions and end the tax exemption for life insurance interest.
- Ends tax treatment of carried interest for speculative partnerships.
- Reforms corporate taxation with a 10 % repatriation tax on overseas holdings.
- He would also reduce or eliminate loopholes and enact a cap on business interest expenses.
The Cruz Tax Proposal
- Reforms by consolidating existing brackets into single rate of 10% on the following:
- Wages, salaries, interest, capital gains, dividends and business income.
- Increases standard deduction.
- Expands
- the Earned Income Tax Credit.
- the Child Care Credit.
- Eliminates most deductions except for
- Charitable Tax Credit.
- Home Mortgage Deduction, capped at principal value of $500,000.
- Establishes
- Universal Savings Accounts.
- Eliminates
- Death Tax.
- Overseas Profits Tax.
- Alternative Minimum Tax (AMT).
- Affordable Care Act Taxes.
- Corporate Tax.
- Establishes a Business Transfer Tax or Value Added Tax at a 16% rate.
