A new tax calculator shows how much you’d be paying—or getting back—depending on who gets elected.
Small business owners are likely prepared—or at least aware—that their taxes could be vastly different depending on who’s in the White House.
But which hopeful would be best for you and your business?
In order to highlight the impact of different tax plans, the Tax Foundation partnered with USA Today to build a free “candidate tax calculator.” By analyzing “how these plans would impact the economy, federal revenue, and the distribution of taxes paid” this calculator highlights “roughly what your tax bill is under current law and what it would be if Hillary Clinton, Ted Cruz, Bernie Sanders, and Donald Trump were able to enact their tax plan,” according to the Tax Foundation. John Kasich had not released enough specifics on his plan to be included in the calculator, the Tax Foundation said, and now that both he and Cruz have dropped out of the race, it’s a non-issue.
Looking for more specifics? NFIB has previously written about each candidate’s tax plan—and what it means for your small business:
- Sanders’ plan—which would raise payroll taxes and individual income taxes, especially on high-income households—would reduce after-tax incomes of all taxpayers by at least 12.8 percent.
- The self-dubbed “small business president” Hillary Clinton has plans to raise tax revenue by $498 billion, largely coming from a cap on itemized deductions.
- Cruz would implement a 10 percent flat tax on all income levels, slashing taxes by $3.6 trillion over the next ten years. (That plan’s reality might be unlikely now—Cruz suspended his campaign May 3.)
- Trump has said that his tax plan would “provide major tax relief for middle income and for most other Americans,” offering small business owners a special tax rate of 15 percent.
Photo credit: Gage Skidmore