As expected, Clinton, who leads her Republican rival in the latest polls, plans to expand middle class tax breaks such as doubling the child tax credit while hiking taxes for top earners in the hopes of putting $1.4trn over 10 years in the state coffers.
Americans who earn more than $250,000 face a 4% “fair share surcharge” on incomes over $5m a year.
She will also impose a minimum effective tax rate of 30% on incomes over $1m, dubbed the “Buffett Rule”, after billionaire investor Warren Buffett – a Clinton supporter – who declared it isn’t right that his secretary should pay a higher tax rate than he does.
In September, Clinton said she was looking to raise estate tax paid by ultra-rich Americans to 65% on property valued at more than $500m – a move likely to affect the top 1% of wealthy Americans.
Meanwhile, Trump plans an ‘across-the-board’ $6.2trn tax reduction over the next 10 years, including repealing the death tax, the estate tax with the top 1% getting almost half that benefit and a 13.5% boost to their aftertax income.
