Is Hillary Clinton going to raise taxes? Here’s what we really know of her plan
The issue of higher taxes came up almost immediately at the debate Monday night, when Democratic nominee Hillary Clinton discussed funding family leave and debt-free college through “raising taxes on the wealthy” and closing corporate tax loopholes. Her rival for the presidency and Republican nominee Donald Trump immediately responded by claiming Clinton’s tax plan was driving business out of the country. But is it really fair to say Clinton would raise taxes? Let’s examine.
Following Clinton’s current tax plan, the top 1 percent of American households (or those bringing in more than $730,000 a year) would see a tax increase of roughly $78,000 on average, according to analysis from the Tax Policy Center. Additionally, Clinton would also raise the top estate tax rate to 45 percent from 40 percent, and tax estates over $10 million to 50 percent, estates over $50 million to 55 percent, and estates over $500 million to 65 percent.
The top 1 percent in America would pay more than three-quarters of Clinton’s proposed tax increases, according to the Tax Policy Center, and the vast majority of tax filers would see very minimal change.
According to Clinton, these tax increases on the top 1 percent would go toward investing in access to education, family leave, expanded healthcare coverage, small business, and infrastructure. As the Tax Policy Center found of former Democratic presidential candidate Bernie Sanders’ tax plan earlier this year, in terms of the additional benefits middle-class Americans would reap from Clinton’s plan, Clinton’s would save middle-class Americans money in offering wider healthcare options and more affordable college.
Trump responded by pressing Clinton on how taxes raised from the wealthy have continually been “squandered” by plans like Clinton’s, leading Clinton to move the discussion to Trump’s failure to release his tax returns and history of bankruptcy, which, naturally, set off a whole new dialogue.