Horizons Fall/Winter 2020

W ith the Republican and their official candidates for president: the incumbent, Republican Donald Trump, and his Democratic challenger, former Vice President Joe Biden. The two men find little common ground in their respective policies, and this holds true for their tax proposals. As the ensuing discussion will illustrate, the President is looking to add additional tax cuts to the $1.5 trillion he provided with the 2017 Tax Cuts and Jobs Act (TCJA), while Joe Biden would significantly raise taxes on the country’s highest earners in order to pay for social programs. Trump’s Tax Plan The TCJA remains President Trump’s signature legislation from his first term. In his bid for re- election however, the President has released little in the way of formal tax proposals for the future. In recent weeks, he has expressed a desire to completely eliminate the payroll tax, though administration officials say that such a move is not under serious consideration. In addition, the President has proposed further reducing the top rate on capital gains from 20% to 15%, a move that stands in stark contrast to a key proposal from former Vice President Biden. President Trump’s website also indicates that the following proposals would become a core part of his tax policy, though details remain elusive: Democratic Conventions complete, Americans have

∙ “Made in America” Tax Credits

∙ Expanded Opportunity Zones

∙ Tax Credits for Companies that Bring Back Jobs from China

Fall/Winter 2020

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