Both candidates gave speeches last week giving that American people a clearer idea of their plans for the economy. Now the public knows how the candidates plan to spend, save, and tax on America’s behalf as President.
For the most part, Donald Trump and Hillary Clinton have very different policy positions, but surprisingly they agree on several points too.
Both candidates want to:
- Close tax loopholes for the rich
- Stop companies from moving abroad to avoid US taxes, known as “corporate inversion”
- Reject the Trans-Pacific Partnership (TPP)
- Get rid of the “carried interest tax” which mostly benefits hedge fund managers
Let’s look at their positions on taxation, trade deals, employment, workplace and family reforms, infrastructure, climate and energy.
- Trump wants to cut taxes for all Americans, and would reduce the number of tax brackets from 7 to 3. He would also get rid of estate tax, which applies when someone passes more than $5.4 million in assets to someone else when they die.
- Trump’s plan would reduce the government’s income by $9.5 trillion in the next 10 years, according to the Tax Policy Center. According to the Tax Foundation, it would lower taxes for all but would mostly benefit the rich.
- Under Clinton, most people would pay the same in taxes. Those making over $5 million would be in a new bracket and have to pay an extra 4% called the “fair share surcharge” (for a total of 43.6% of their income being paid to the government).
- Over the next decade, Clinton’s plan would add $1.1 trillion in revenue for the government.
- Trump would re-negotiate trade deals to make the more beneficial to the US but didn’t specify how. He said he would walk away from deals like NAFTA if a beneficial deal couldn’t be reached.
- Trump would charge new tariffs on countries who violate trade deals, and would label China as a currency manipulator.
- Clinton used to support NAFTA and TPP but has since changed her mind on both.
- She, like Trump, would impose tariffs on countries who “game” the system.
- For more jobs, Trump will encourage more companies to open in the US.
- Clinton will increase jobs training to grow jobs and prepare workers. Mrs Clinton’s policy for jobs growth is a little more specific. She will invest in infrastructure and energy, which will create jobs in those sectors.
Workplace and Family Reform
- Trump will raise the minimum wage from $7.25 to $10 per hour.
- Trump would create child care tax deduction which would cover the average cost of care.
- Clinton will raise the minimum wage from $7.25 to $15 per hour.
- Clinton would cap the cost of childcare to 10% of a family’s income. She also proposed a child care tax credit, which would be more beneficial for lower income families.
- Trump wants to spend double what Clinton suggests on infrastructure.
- Clinton proposed spending $275 billion on infrastructure, which would be paid for with business tax reforms.
Climate and Energy
- Trump is in favor of the Keystone Pipeline and energy production on federal land. While he is against Obama’s executive actions like the Climate Action Plan which caps greenhouse gas emissions.
- Clinton is in favor of Obama’s Climate Action Plan, and wants to make it tougher. She also wants to invest in clean energy, having all homes powered by renewable energy by the end of the next 10 years.