The 2016 presidential election presents a fork in the road economically. On the left, we have Hillary Clinton. On the right, Donald Trump.
We know that regulations hinder economic growth, and have no doubt, the regulatory scenery will vary greatly depending on which road we take. Hillary Avenue on the left features several tax hikes, especially for those at the top. The plan calls for raising income taxes to generate $1.2 trillion over a decade, with the top 5 percent of earners taking 90 percent of the hit. On this route, the top 1 percent will pay an average tax bill of $78,000 per year, according to an analysis from the Tax Policy Center! Part of that is because it will be more difficult to claim capital gains. Currently, gains from an investment held for a year or more are taxed at 20 percent.
Hillary Avenue gets bumpy on capital gains because her plan aims to require a six-year holding period to experience capital gains tax treatment, with anything less being taxed as income on a sliding scale.
On top of that, Mrs. Clinton wants to increase federal spending by $1.4 trillion over 10 years without any semblance of real corporate tax reform, despite the U.S. having the highest business rate on the globe!
Over on the rightward path – Trump Lane – a more pro-growth outlook is ripe with successful supply-side policies. They include across-the-board individual tax cuts, simplified tax brackets, business tax cuts, and a desire to end corporate tax inversions.
On top of that, Mr. Trump would end the estate tax and roll back burdensome regulations. In short, Trump Lane is the drive leading up to the end goal of an America that is the most business-friendly nation in the world.
Which way do we want to go?