Tax reform proposal analysis – Hillary Clinton
Each candidate in this year’s presidential election has a big vision for the United States regarding revenue which would lead to the growth of the American economy. One of the issues at hand that each of them is tackling is the tax issue.
Hillary Clinton is one of the most vibrant candidates in the presidential election. According to Hillary, her tax proposal is set to grow America economically. First on her proposal is the increase in tax on home and business income due to some policies that are set to be enacted, the plan aims at enacting what is known as the buffet effect which will ensure that a 30% minimum tax is attained on persons whose income is above $1,000,000. In the current taxation policy, the progressive tax rate applies at different levels of income, but the citizens are still not comfortable with the tax system. Figure one shows Clinton detailed tax plan.
For every United States president that has come into power, their primary agenda has been to capitalize on improving the economy of the United States by setting up tax policies that favor both the citizens and generation of revenue. In a survey conducted by the tax foundation (2016) Hillary’s plan is scheduled to reduce the country’s GDP by 1% in the long term. The reduction will have an adverse effect on the various sectors of the US economy as the wages will go lower by 0.8 % and the capital markets decline by 2.8%. the decline of available full-time jobs to 311,000 is another detrimental impact in regards to the Clinton tax plan. Despite the downside of the tax plan, the plan is set to increase America’s federal revenue by $498 billion over the next ten years. According to tax analysts, the increase in federal revenue is an excellent strategy as compared to the current fiscal policy.
According to Clinton’s aides, the improvement of higher education is set to improve the quality of people joining the workforce enhancing entrepreneurial skills amongst the young people. The current system the cost of higher education is very high due to the high amount of taxes imposed on institutions, hence the institutions try to cover for that through high tuition fee. The tax cut that is to be implemented in the higher education is to be imposed on other sectors that generate relatively higher revenue.
About the marriage penalty, Clinton is set to impose a 15% tax reduction on couples if she comes into power. Clinton is advocating for the elimination of the marriage penalty with the idea that the penalty would be offset by the marginal tax rate. For the citizens aspiring to get married, such an action would be a significant relief.
Basing on the discussion above it is evident that Hillary Clinton has major plans for the United States if she is elected as the president. Most of her tax reform plans correspond with the current tax system, and she hopes her ideologies will make the tax system even better.
Clinton’s tax plan
Source: http://taxfoundation.org/article/details-and-analysis-hillary-clinton-s-tax-proposals
Works Cited
"Details and Analysis of Hillary Clinton’s Tax Proposals." Tax Foundation. N.p., n.d. Web. 11 Feb. 2016.
