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    0 Replies Latest reply on Mar 1, 2016 9:16 PM by Vilnius Industries

    An early preview of possible small business tax changes

    Vilnius Industries Tracker

      Now that Super Tuesday is here we can look at the tax plan proposals by the current front runners in the 2016 Presidential Campaign, let's look at the basics and see what pertains to small business owners. First we should recognize that if we have a small business that is a sole proprietor then most likely you will be taxed at the Federal level at the same rate as an individual tax payer, some other business types might also be be taxed at this rate, you should know your business entity type and consult your accountant for more on those details.

       

      Comparing Hillary Clinton's proposal and Donald Trump's proposal at this early stage

       

      Table 1. Individual Income Tax Brackets Under Donald Trump’s Tax Plan

      Ordinary Income

      Capital Gains and Dividends

      Single Filers

      Married Filers

      Head of Household

      0%

      0%

      $0 to $25,000

      $0 to $50,000

      $0 to $37,500

      10%

      0%

      $25,000 to $50,000

      $50,000 to $100,000

      $37,500 to $75,000

      20%

      15%

      $50,000 to $150,000

      $100,000 to $300,000

      $75,000 to $225,000

      25%

      20%

      $150,000 and up

      $300,000 and up

      $225,000 and up

       

      Table 1. Tax Brackets under Hillary Clinton’s Tax Plan

      Ordinary Income

      Capital Gains and Dividends

      Single Filers

      Married Filers

      Head of Household

      10%

      0%

      $0 to $9,275

      $0 to $18,550

      $0 to $13,250

      15%

      0%

      $9,275 to $37,650

      $18,550 to $75,300

      $13,250 to $50,400

      25%

      15%

      $37,650 to $91,150

      $75,300 to $151,900

      $50,400 to $130,150

      28%

      15%

      $91,150 to $190,150

      $151,900 to $231,450

      $130,150 to $210,800

      33%

      15%

      $190,150 to $413,350

      $231,450 to $413,350

      $210,800 to $413,350

      35%

      15%

      $413,350 to $415,050

      $413,350 to $466,950

      $413,350 to $441,000

      39.6%

      20%

      $415,050 to $5 million

      $466,950 to $5 million

      $441,000 to $5 million

      43.6%

      24%

      $5 million and above

      $5 million and above

      $5 million and above

       

      There is also changes to deductions and other things but this is a good place to start for planning on the success of your small business venture  in 2017 and beyond. I'll update this thread as the year goes on and the information becomes discernible.