Close
Close

Clinton and Trump spar over tax policy with new proposals

RFP
Tax Hot Topics: Clinton Trump spar on taxThe Democratic presidential nominee, Hillary Clinton, responded to the new tax proposals of the Republican nominee, Donald Trump, by updating her own tax platform with changes that would expand the cash method of accounting, quadruple the deduction for startup costs, and create a new standard deduction for small businesses.

Clinton added the tax proposals as part of a new platform she says is meant to encourage small business growth. The new tax proposals would:
  • Create a standard deduction for “small businesses” to replace the tracking of certain “overhead costs”
  • Increase the $5,000 deduction for startup costs to $20,000
  • Preserve the zero capital gains rate on small business stock
  • Expand the availability of the cash method of accounting to include businesses with up to $25 million in gross receipts and allow businesses with less than $1 million to avoid tracking inventory
  • Simplify and expand the Affordable Care Act health-care tax credit for small employers

She released the new proposals shortly after Trump updated his own plan to align it more closely with the House Republican tax reform “blueprint.” Trump is now promising full expensing of business equipment, a better deduction for child care expenses and a top individual rate of 33% (compared with his earlier proposals of 25%).

For additional information, contact Mel Schwarz, +1 202 521 1564, or Dustin Stamper, +1 202 861 4144.

Tax professional standards statement
This content supports Grant Thornton LLP’s marketing of professional services and is not written tax advice directed at the particular facts and circumstances of any person. If you are interested in the topics presented herein, we encourage you to contact us or an independent tax professional to discuss their potential application to your particular situation. Nothing herein shall be construed as imposing a limitation on any person from disclosing the tax treatment or tax structure of any matter addressed herein. To the extent this content may be considered to contain written tax advice, any written advice contained in, forwarded with or attached to this content is not intended by Grant Thornton LLP to be used, and cannot be used, by any person for the purpose of avoiding penalties that may be imposed under the Internal Revenue Code.

The information contained herein is general in nature and is based on authorities that are subject to change. It is not, and should not be construed as, accounting, legal or tax advice provided by Grant Thornton LLP to the reader. This material may not be applicable to, or suitable for, the reader’s specific circumstances or needs and may require consideration of tax and nontax factors not described herein. Contact Grant Thornton LLP or other tax professionals prior to taking any action based upon this information. Changes in tax laws or other factors could affect, on a prospective or retroactive basis, the information contained herein; Grant Thornton LLP assumes no obligation to inform the reader of any such changes. All references to “Section,” “Sec.,” or “§” refer to the Internal Revenue Code of 1986, as amended.