With the presidential field down to just three contenders and five short (but expensive!) months to go, it is time to put each candidate’s tax platforms under a powerful microscope.
This is no frivolous academic exercise: the candidates’ tax plans could have a critical impact on your future paycheck, your retirement and the health of the whole U.S. economy.
Take a look at where each candidate stands on taxes, and ask yourself:
With a new president on the horizon, wouldn’t you sleep better at night knowing your wealth protection strategy is firmly in place with gold and silver in your IRA?
Bernie Sanders
Simply put, Bernie Sanders wants to raise taxes on everyone, with affluent households funding the majority of the anticipated extra tax revenue. Sanders has also proposed a 6.2% income-based tax on corporations to pay for universal health care for every American.
Assuming his proposals are implemented, every American would see his or her tax rate rise by 2.2%, which he hopes would generate nearly $2.5 trillion dollars in revenue over ten years.
Households earning $250,000 would face four new income tax brackets with the Sanders plan: 37%, 43%, 48% and 52%. Sanders also wants to eliminate the preferential treatment of capital gains and dividends by taxing them as ordinary income for households earning more than $250,000 per year. He would also charge the “rich” an additional 2.2% healthcare premium.
SANDERS…THE BOTTOM LINE: According to the Tax Foundation, Sanders’ tax plan would cost the U.S. economy 6 million jobs, a 4% reduction in wages and Gross Domestic Product (GDP). While universal health care would help reduce federal budget deficits, the impact of the Sanders’ tax plan on capital investments could be devastating.Raising taxes on employers and corporations could result in a Sanders economy with lower wages, higher consumer prices and less foreign investment in U.S. companies.
Hillary Clinton
Under Hillary Clinton’s tax proposals, the wealthy will pay more, the tax code will become more complicated, and carried interest will be taxed as ordinary income.
Clinton would impose the so-called Buffett rule and require people with an Adjusted Gross Income (AGI) of more than $1 million dollars to pay a minimum of 30% of their income in taxes.
Clinton has provided no specifics as to how she will reduce taxes on low- and middle-income filers.
Moreover, Clinton would impose a 4% surcharge on AGI over $5 million dollars. She also wants to preserve the current 3.8% in Medicare surtaxes if their capital gains exceed a certain threshold.
CLINTON…THE BOTTOM LINE: The economic impact of Clinton’s tax proposals is unclear. People who manage hedge funds, venture capital funds and other private equity funds will take a big hit. If the added revenue from the Clinton plan is used to pay down the federal debt, lower interest rates could support future economic growth and more investing. But if history is any guide, Clinton will not pay down the debt but instead increase government spending, particularly on entitlements. If you like Obama’s slow-growth, low-wage economy, expect more of the same under Clinton.
Donald Trump
Donald Trump’s tax plan would sharply reduce the top tax rate on individual income from 39.6% to 25% and reduce rates for lower-income filers. Trump’s plan would also lower the tax rate on corporate income from 35% to 15%.
Trump has signaled his opposition to lower Medicare and Social Security benefits. If entitlement cuts are off the table, Trump would then need to cut discretionary federal spending by 80%, and that would trigger cuts in defense and vital programs in research and education.
Trump is betting that his tax cuts will stimulate sufficient economic growth to offset projected budget deficits. (Remember trickle down economics?) Trump has provided no details on how he will address federal spending.
TRUMP…THE BOTTOM LINE: If Trump’s tax plan is fully implemented, the federal budget deficit is expected to increase by $10 trillion to $12 trillion dollars over the next decade.
In recent interviews, Trump has said that if U.S. debt levels get too high, he would “make a deal with creditors.” (Sounds like default, right?) And the worst thing is… the biggest owner of U.S. Treasury bonds is Americans, who currently own almost $5 trillion dollars worth.
Three Flawed Tax Plans…One Solution: Gold
One socialist candidate promises universal health care and offers no realistic way to pay for it. One liberal candidate wants to make the tax code more complicated to help the special interests. One conservative candidate wants to cut taxes primarily on the rich and provides no concrete plan to curtail federal spending.
All of these politicians are playing three-card Monte with your future and leaving you nothing but debt and federal deficits in perpetuity.
As I reported last month, by the time President Obama leaves office in January 2017, the U.S. national debt will reach $20 trillion dollars. No matter if the next President is Trump, Clinton or Sanders, your taxes are going up or massive deficits will continue.
Either way, the best way to “politician proof” your portfolio is to own gold or silver.
Do You Trust Politicians with Your Financial Future?
Call our experts today at 800-462-0071 and they will develop a concrete action plan to help protect your hard-earned wealth. No matter who wins in November and how much tax policy changes in the coming years, you will sleep better at night.
