U.S. presidential candidates | KPMG | GLOBAL

Election-year tax proposals of presidential candidates

U.S. presidential candidates

The presidential candidates of the two major political parties—Donald Trump and Hillary Clinton—each this week presented what have been described as significant or major economic speeches and general outlines of their tax plans, if elected.


Related content

Trump’s tax proposals

Speaking first on Monday before the Detroit Economic Club, Mr. Trump outlined a number of tax proposals in his speech such as:

  • A 15% tax rate applied to all business income, regardless of legal structure
  • Repatriation of untaxed foreign earnings of U.S. corporations at a 10% rate 
  • Expensing of costs for acquisition of business assets
  • Limitation of the favorable tax treatment of carried interest
  • Full repeal of the estate tax
  • Full deduction for parents of the “average” cost of child-care
  • Reduce the seven individual tax brackets to three—33%, 25% and 12%

Additional details are expected, but a number of these proposals represent changes to Mr. Trump’s original tax plan released last year. 

Clinton’s tax proposals

Secretary Clinton—speaking today at an advanced manufacturing facility in Warren, Michigan—highlighted several proposals from her previously released tax plan, including:

  • A “Buffett rule” minimum tax of 30% on incomes of more than $1 million per year
  • A 4% “fair share surcharge” on incomes of more than $5 million per year
  • Close the “carried interest loophole” 
  • Impose an “exit tax” on untaxed earnings of corporations that change U.S. residence
  • Reward companies that share profits with employees

Official text of Ms. Clinton’s speech is not available, but her tax proposals are described on her campaign’s website.

© 2018 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.

The KPMG logo and name are trademarks of KPMG International. KPMG International is a Swiss cooperative that serves as a coordinating entity for a network of independent member firms. KPMG International provides no audit or other client services. Such services are provided solely by member firms in their respective geographic areas. KPMG International and its member firms are legally distinct and separate entities. They are not and nothing contained herein shall be construed to place these entities in the relationship of parents, subsidiaries, agents, partners, or joint venturers. No member firm has any authority (actual, apparent, implied or otherwise) to obligate or bind KPMG International or any member firm in any manner whatsoever. The information contained in herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation. For more information, contact KPMG's Federal Tax Legislative and Regulatory Services Group at: + 1 202 533 4366, 1801 K Street NW, Washington, DC 20006.

Connect with us


Request for proposal