Since it's tax day, what tax plans do each of the remaining presidential candidates have? Ted Cruz would establish a ten percent flat tax on individual income. He would replace the corporate income tax and all payroll taxes with a 16 percent "business transfer tax”. Donald Trump would have four tax brackets instead of seven and set the top marginal income tax rate at 25 percent. He'd also create a zero bracket for lower income individuals. John Kasich would crunch the brackets from seven to three and cut the top rate from 39.6 percent to 28. He'd also reduce long term capital gains rates to 15 percent.
Hillary Clinton would add a four percent surtax on income over five million, and raise rates on medium term capital gains to as much as 39.6 percent. Bernie Sanders would establish four new brackets of 37, 43, 48 and 52 percent, and add a new 6.2 percent employer-side payroll tax on all wages and salaries.
As former defense secretary Donald Rumsfeld tweeted out today, “At 83, I am close to losing hope that I will live to see a flat tax.” I’m all for simplifying the system too Mr. Rumsfeld. Let's hope it happens soon.