The Democratic presidential nominee, Hillary Clinton, responded to the new tax proposals of the Republican nominee, Donald Trump, by updating her own tax platform with changes that would expand the cash method of accounting, quadruple the deduction for startup costs, and create a new standard deduction for small businesses.
Clinton added the tax proposals as part of a new platform she says is meant to encourage small business growth. The new tax proposals would:
- Create a standard deduction for "small businesses" to replace the tracking of certain "overhead costs"
- Increase the $5,000 deduction for startup costs to $20,000
- Preserve the zero capital gains rate on small business stock
- Expand the availability of the cash method of accounting to include businesses with up to $25 million in gross receipts and allow businesses with less than $1 million to avoid tracking inventory
- Simplify and expand the Affordable Care Act health-care tax credit for small employers
She released the new proposals shortly after Trump updated his own plan to align it more closely with the House Republican tax reform "blueprint." Trump is now promising full expensing of business equipment, a better deduction for child care expenses and a top individual rate of 33% (compared with his earlier proposals of 25%).
See Grant Thornton's graphic chart on the candidates' tax proposals for a full side-by-side comparison of their tax platforms.
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