Trump and Cruz Tax Proposals under the NCPA/BHI National Model

Special Publications | Taxes


Sunday, January 31, 2016
by NCPA

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.

 

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