With Election Day just around the corner, we wanted to help you sift through the rhetoric by providing you with a comparison of Trump and Biden’s tax proposals. Of course, it bears noting that these proposals often change once a candidate is elected, but here is where the candidates stand as of today.
|Donald Trump||Joe Biden|
|Individual tax cuts||Permanency for the individual provisions under the Tax Cuts and Jobs Act.||Increase the maximum child and dependent care credit from $2,100 to $8,000.|
|Create $5B in tax credits for contributions under the Education Freedom Scholarship program.||Institute a refundable $15,000 tax credit for first-time homebuyers.|
|Implement tax-free investments into universal savings accounts.||Implement a renter’s credit to reduce rent and utilities to 30% of income.|
|Expand the earned income tax credit for taxpayers over 65.|
|Business tax cuts||
Permanency of 100 percent bonus depreciation.
|10 percent credit for reopening plants and facilities and expanding production in the United States.|
|Permanency of 20 percent pass-through deduction.||Incentive for businesses that manufacture drugs and other critical products.|
|Tax credits for companies that: 1) create jobs in America; and 2) bring jobs back to America.||Small-business tax break for starting a retirement plan.|
|Credits for expanding new markets expanded.|
|Credit for low-income housing expanded.|
|Credit for businesses that build an onside childcare-facility.|
|Business tax increases||None||21 percent minimum tax for global intangible low-taxed income.|
|Tax penalty for corporations who move jobs offshore.|
|Tax penalty for drug manufacturers who increase prices beyond inflation.|
|Individual tax rate||Permanency for the Tax Cuts and Jobs Act rate cuts.||Raise the top tax rate from 37 percent to 39.6 percent.|
|Cut taxes by 10 percent for the middle class.||Place a threshold on the value of tax deductions at 28 percent.|
|Reduce the 22 percent tax bracket to 15 percent.||On wages over $400,000, implement a 12.4% payroll tax.|
|Corporate tax rate||No change. Keep 21 percent tax rate.||Raise the corporate tax rate to 28 percent.|
|Institute a 15 percent minimum tax on global book income over 100 million.|
|Estate tax||Permanency for Tax Cuts and Jobs Act estate-tax provisions.||Restore estate tax rates to pre-TCJA norms.
|Eliminate stepped-up basis for inherited capital assets.|
|Capital gains||No changes.||Taxed as ordinary income at top rate (which Biden would increase from 37 percent to 39.6 percent) on income above $1 million.|
|Energy||Eliminate: 1) credits for electric vehicles and 2) accelerated depreciation for renewable energy property.||Instate full credit for electric vehicles.|
|Repeal: 1) the residential energy efficient property credit; and 2) the renewable energy investment credit.||Extend tax incentives for companies that create jobs in energy efficiency and clean energy.|
Reinstate tax credits for residential energy efficiency.
|Create incentives for: 1) carbon capture technology; and 2) manufacturing companies that make energy efficient upgrades.|