Buffett responds to Trump’s tax comments

Democratic presidential candidate Hillary Clinton arrives to speak at a rally at The Ohio State University in Columbus Ohio Monday Oct. 10 2016

But directionally, their revisions don’t change their broad, opposing courses. One, from the Tax Policy Center, says, “The proposal would cut taxes at every income level, but high-income taxpayers would receive the biggest cuts, both in dollar terms and as a percentage of income”. And numerous donations Trump had publicly boasted of turned out to have come from other people’s pockets, like those who had given money to the Trump Foundation. It’s worth noting that this analysis is not taking into consideration proposals by Trump that would have a direct impact on the economy, such as spending, trade agreements, and immigration. It estimates Clinton’s plan would increase revenue by $1.4 trillion over the next decade, largely through tax increases on the wealthy and reforms to capital gains, estate and gift taxes. But if this plan was to go into effect, it seems as though middle-class Americans wouldn’t benefit much.

The Republican presidential nominee is calling for a wholesale revision of the tax code.

Reducing taxes on the grand scale that Trump has proposed would mean far less revenue for the federal government. The fee is taxed at the same rate everyone else pays on their salary, a marginal rate of 39.6%, but managers’ share of the fund’s profits – known as carried interest – is taxed at a reduced rate of up to 23.8%.

Currently, profits from investment funds can be taxed at a personal capital gains tax rate of 23.9 percent rather than the top marginal income rate of 39.6 percent. (That by the way also refutes claims by critics that Buffett is getting tax deductions for donating to his private charity).

As a result, all income groups on average would see a tax cut. Translation: If you owe $3,000 in income taxes, but you have a new baby, your tax bill would fall to just $1,000.

Buffett says that his tax returns show an adjusted gross income of $11,563,931 of which $5,477,964 was taken out in deductions.

Clinton responded to Trump’s comment about her allowing tax write-offs by claiming to have been opposed to the carryforward rule since she was NY senator.

But analysts said Trump has not said what constitutes a large business.

Burman noted in his call that the campaign failed to provide guidance on key questions where TPC expressed uncertainty. During Sunday’s debate, moderator Anderson Cooper asked the Republican candidate whether or not he had used the carryforward provision to justify not paying federal income taxes for 15 years after his 1995 loss. Trump would cut taxes by $6.2 trillion over 10 years, benefiting wealthy families and business. In other words, the top 1 percent would see a tax break equivalent to about 1.32 percent of GDP. “It helps very low income families”, Williams said. According to TPC’s analysis, it would actually take money away from single mothers and fathers, as well as married parents with large families. Clinton proposes a 45 percent estate tax rate, up from 40 percent. The Trump campaign said the analysis is worthless because it lacks critical calculations.

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