Both Hillary Clinton and Donald Trump have both introduced Hillary Clinton’s tax plan would increase federal revenue by about $1.4 trillion over the next decade. Her plan would make the current taxA tax is a mandatory payment or charge collected by local, state, and national governments from individuals or businesses to cover the costs of general government services, goods, and activities. code more progressive by raising taxes on top earners and cutting taxes for families with young children. Her plan would slightly increase marginal tax rates, which would have a significant impact on the economy and millions of taxpayers.
The Tax Foundation has put together a simple tax calculator to illustrate how their plans could impact you. In the calculator below, enter your salary (wage income), marital status, how many dependents you have, and an estimation of your childcare costs and itemized deductionItemized deductions allow individuals to subtract designated expenses from their taxable income and can be claimed in lieu of the standard deduction. Itemized deductions include those for state and local taxes, charitable contributions, and mortgage interest. An estimated 13.7 percent of filers itemized in 2019, most being high-income taxpayers. s, if applicable. The calculator will show you, roughly, how much you owe in individual income and payroll taxA payroll tax is a tax paid on the wages and salaries of employees to finance social insurance programs like Social Security, Medicare, and unemployment insurance. Payroll taxes are social insurance taxes that comprise 24.8 percent of combined federal, state, and local government revenue, the second largest source of that combined tax revenue. es under current law and how it could change under Clinton’s or Trump’s proposal.
The tax code is quite complicated and this calculator does not capture every element of the current code or the code under each proposal, but it still captures the elements of the tax code that most taxpayers deal with. And please don’t use this to file your own taxes!
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