One of the big issues every presidential election is how the respective candidates will alter the tax code. Will you be better off, worse off, or will their plan impact your finances at all. The problem is that most people, regardless of political leanings, are fundamentally ignorant on the issue of taxes. That ignorance leads people to believe, falsely, that they will get ‘free’ things from the government, or that the wealthy can mathematically pay for all increased spending (or current spending for that matter).
I’d discussed the various tax plans from all remaining candidates some months ago. Many of those candidates have now left the race. It is one thing to read about a tax plan if you don’t fully understand taxes, but it is another thing to actually input your income and see how your taxes will change under various tax plans.
That’s where this handy dandy calculator comes in. Just fill in the blanks, and voila!
Of course, this is a general federal tax burden calculator under the current candidate’s proposed tax plans. Each individual will be impacted differently based on how they have structured their retirement, medical, and investments. This calculator also doesn’t factor in all government finances. The annual cost of government under the particular candidate’s tax plan will also be a factor. So will Congress, but I digress. Give the calculator a try to see, roughly, where your taxes will be under each candidate’s tax plan.
Here’s what my taxes would look like under each plan for 2015, and my estimated 2016 taxes. Obviously, I didn’t include specifics in the graphics, but I am lower middle class under federal government guidelines. I’m also primarily a single-income household with a wife, child, and new baby on the way. To say we are financially stressed is an understatement. This info is important because candidates frequently lie about the effect of their tax plan. They will say their plan helps the middle class, only taxes the rich, etc. I am lower middle class, so my results will be a broad barometer of the tax plan’s impact on Americans.
None of this surprises me because I’ve broken this down before on my show. As you can see, if I applied my current 2015 taxes to the candidate’s tax plans, Trump would benefit my family the most. Furthermore, I’m a small business owner. Trump’s business tax plan is the best for me in that category too. I should also point out that Cruz’s plans in both personal and business are also better than they currently are.
Now let’s look at my projected 2016 taxes. Yes, this is only a projection, but it’s an educated one based on my salary and current small business pay structure. It also factors in the birth of my second child.
Hmm … this is interesting. Only adding a few thousand dollars to my income, and adding an additional child to my family reduces my tax burden even further under the Trump and Cruz plans. Under Hillary my taxes stay roughly the same (slightly worse than current rates under Obama). Bernie Sanders actually penalizes the hell out my family for having another child.
Again, my family is lower middle class according to the federal government income guidelines. So while Bernie runs around saying he’s only going to tax the rich, and the middle class will largely be left alone, or better off, this lower middle class income bracket family is staring at a tax increase of $685 per month under his tax plan. I can not afford Obamacare insurance at around $550 a month for my family. It nearly bankrupted us. That’s why we dropped insurance coverage. Sanders wants to further increase the burden on my family.
Not only would a $685 a month tax increase make living our lives nearly impossible, but it would make being a business owner impossible. His business tax plan is even worse than his personal income tax plan … at least for me and my family.
Do your tax estimate to see how your family will fair under the candidate’s tax plans, and let me know who’s best for you in the comments.
Remy breaks down tax lunacy in this parody song: