(WLNS) – Many topics are important this election season but when it comes to dollars for you to spend that topic seems to be front and center.
If you make under $100,000 a year will your taxes go up? Or go down?
Both candidates have different tax plans depending how much you make.
MSU economics professor Charles Ballard explains “If you were a millionaire you would pay a lot more taxes under Hillary Clinton. And if you were a millionaire you would pay a lot less taxes under Donald Trump.”
But is it that simple? Ballard says the tax code is complicated and many loopholes allow some to find tax cuts, preventing them from paying, which is perfectly legal.
Clinton has accused donald trump of doing that…but we don’t know since trump has not released his tax returns…which is also perfectly legal
“I think we need a law that says if you become the nominee of the major parties, you have to release your tax returns,” says Hillary Clinton.
But Trump assures under his plan taxes will go down.
The candidate claims “we’re reducing your taxes by 35-percent to 15-percent.”
Ballard says it’s upper middle-class Americans that is where the candidates differ on tax cuts. “If you make $100,000 a year you’re going to have a tax cut under Trump and you’re not under Clinton. If you make a million a year you will have a major tax cut under Trump and not a tax cut under Clinton, in fact your taxes would be going up.”
“Families will be able to fully deduct the average cost of childcare from their taxes, including stay at home parents,” says Trump. “Because this deduction is capped, it will be disproportionately and benefit working and middle class families.”
To which Clinton responds “Donald Trump doesn’t need a tax cut. I don’t need a tax cut. It’s time for the wealthiest Americans whoever you are, as well as corporations and wall street to pay your fair share in taxes. You have been successful in this country because of everything this country represents.”
Ballard says that whoever the president is it’s up to Congress to pass the tax plan before it becomes law for the American people. “This is an area that the president, if it’s Trump or Clinton, the president can’t act by him or herself,” Ballard says.
Besides changing the tax code that each candidate has proposed other taxes such as the estate tax, or “death tax” as it’s referred to, is also disagreed on between Trump and Clinton.
Trump wants to lower the taxes on estates after the owner has died while Clinton wants to increase it.