TruckerVote.com Advisory: How do the presidential candidates compare on taxes?

This just in from our friends at Phillips Business Group...

As we approach the 2024 elections, it’s crucial for tax planning clients to stay informed about the proposed tax policies of each candidate. Understanding these policies can help you prepare and adapt your tax strategies accordingly. Here’s a breakdown of the key tax proposals from Joe Biden, Donald Trump, and Robert F. Kennedy Jr., and what they mean for you.

Joe Biden (D)

Joe Biden's proposed budget for fiscal year 2024 includes several significant changes that could impact individuals and businesses. Here’s what you need to know:

Business Taxes:

Increase corporate tax rate from 21% to 28%.

Increase Global Intangible Low-Taxed Income (GILTI) Tax from 10.5% to 21%.

Implementing new minimum tax and undertaxed profits rule (UTPR) aligned with the OECD/G20 global minimum tax.

Capital Gains and Dividends:

Tax on long-term capital gains at ordinary income tax rates for incomes above $1 million.

Minimum effective tax rate of 20% for households with net wealth above $100 million.

Credits, Deductions, and Exemptions:

Increase child tax credit to $3,600 for young children and $3,000 for older children, with full refundability permanently.

Expand earned income tax credit for workers without qualifying children.

Individual Income Taxes:

Increase the top individual income tax rate to 39.6% for incomes above $400,000 (single filers) and $450,000 (joint filers).

Increase net investment income tax and Medicare tax to 5% on income above $400,000.

Tariffs and Trade:

Maintain Section 301 tariffs on $360 billion worth of goods from China and raise tariffs on an additional $18 billion of imported goods.

Implications for Tax Planning Clients:

Businesses and high-income individuals should prepare for increased tax liabilities.

Clients with significant investments may need to reassess their strategies to manage higher taxes on capital gains and dividends.

Families and low-income workers can benefit from enhanced tax credits.

Donald Trump (R)

Donald Trump's tax proposals focus on maintaining and expanding the tax cuts from the 2017 Tax Cuts and Jobs Act. Key points include:

Business Taxes:

Lower corporate tax rate from 21% to 20%.

Estate and Wealth Taxes:

Make the expiring estate tax cuts permanent.

Individual Income Taxes:

Make the expiring individual income tax cuts permanent.

Exempt tips from income taxes.

Tariffs and Trade:

Universal baseline tariff imposed on all U.S. imports.

60% tariff on Chinese imports, significantly affecting importers and consumers.

Implications for Tax Planning Clients:

Lower corporate taxes and potentially reduced tax burden for businesses.

Clients may benefit from more favorable estate tax conditions.

Continuation of current tax cuts could provide predictability for individual taxpayers.

Import-heavy businesses may face higher costs due to increased tariffs.

Robert F. Kennedy Jr. (I)

Robert F. Kennedy Jr.'s tax proposals are focused on cryptocurrency, particularly Bitcoin:

Capital Gains and Dividends:

Exempt Bitcoin from capital gains taxes when converted to or from U.S. dollars.

Implications for Tax Planning Clients:

Significant potential benefits for clients invested in Bitcoin, including reducing tax liabilities on transactions.

As the election approaches, staying informed and proactive in your tax planning is essential. Each candidate's policies present unique challenges and opportunities. At Phillips Business Group, we help you navigate these changes and optimize your tax strategies.