2020 Election: Tax Plans for All 24 Democratic Presidential Candidates

Rocky Mengle, Tax Editor

Getty Images

Who will face President Trump in the 2020 election? So far, 24 Democrats have thrown their hat into the ring. However, now that the first round of Democratic primary debates is over, expect a few candidates to drop out or fade away. (Four challengers--Steve Bullock, Mike Gravel, Wayne Messam and Seth Moulton--didn't even qualify for the first debates.) Before that happens, let's take a look at what all 24 Democratic candidates have to say about an important campaign issue: taxes.

The Democratic party is moving to the left, and party voters want to know how each candidate will address income inequality as president. That means pushing progressive ideas on job creation, health care, higher education and other economic issues. Tax policy has to be part of the equation, too. Any broad new social programs will have to be paid for somehow, and that usually means tinkering with the tax code. Some candidates have big, bold tax plans, while others have ideas that are more modest and piecemeal. The voters will ultimately decide which path is best. It'll be months before the first Democratic primary ballot is cast, but it's not too early to start thinking about who will get your vote. When it comes to taxes, here's what all 24 Democratic primary challengers (in alphabetical order) are proposing. Start brushing up now, so you'll know who to vote for when the time comes.

SEE ALSO: Ranking the Top Democratic Presidential Candidates for 2020

Michael Bennet

Getty Images

Home State: Colorado

Age: 54

Highest Office: U.S. Senator

As part of his climate change plan, Sen. Michael Bennet is calling for tax incentives to encourage the use of zero-emission vehicles and transit programs. The credits could go to car manufacturers that sell zero-emission vehicles. He is also backing legislation that would create an investment tax credit for business and home use of energy storage technology. This tax break is modeled after the current investment credit for solar energy and would apply either to grid-connected energy storage systems or to residential battery systems.

Sen. Bennet is also behind a plan to overhaul the child tax credit. Currently, you claim the credit on your tax return and the credit amount is subtracted from your tax bill. Also, up to $1,400 of the credit is refundable (that is, you can get a tax refund for up to that amount if the credit is more than what you would otherwise owe). The revised credit under Sen. Bennet's plan would be paid to taxpayers on a monthly basis--$300 per-month ($3,600 per year) for children under six years of age and $250 per-month ($2,000 per year) for children under 17 years of age. So you wouldn't have to wait until April 15 each year to actually benefit from the credit. The credit would also be fully refundable.

The senator has also recently introduced or co-sponsored legislation to expand the earned income tax credit and to exempt AmeriCorps education awards from income tax.

SEE ALSO: 20 Most-Overlooked Tax Breaks and Deductions

Joe Biden

Getty Images

Home State: Delaware

Age: 76

Highest Office: U.S. Vice President

Since throwing his hat in the ring in April, former Vice President Joe Biden hasn't presented a formal tax plan. He has, however, stated that he would repeal Trump administration tax cuts for corporations and the wealthy. He also wants to eliminate the step-up in basis for inherited capital assets, which means more taxes on heirs, and is likely to push for middle-class tax breaks.

Vice President Biden has issued a climate change plan that includes some tax provisions. His "Clean Energy Revolution" would be paid for by "reversing the excesses of the Trump tax cuts for corporations, reducing incentives for tax havens, evasion, and outsourcing, ensuring corporations pay their fair share, closing other loopholes in our tax code that reward work not wealth, and ending subsidies for fossil fuels." More specifically, his plan calls for restoring the full electric vehicle tax credit (while aiming it at middle-class consumers) and increasing tax incentives for carbon capture, use and storage. (The plan doesn't specifically mention a carbon tax, though.)

SEE ALSO: 10 Tax Breaks for the Middle Class

Cory Booker

Getty Images

Home State: New Jersey

Age: 50

Highest Office: U.S. Senator

Sen. Cory Booker's newest tax plan is to create a refundable credit for renters. The credit would be equal to the amount of rent exceeding 30% of an eligible taxpayer's income, but only up to the neighborhood's fair market rent as determined by the U.S. Department of Housing and Urban Development. The estimated median credit amount would be $4,800. The proposal is part of a much larger plan to address the lack of affordable housing, and it would be paid for by restoring the federal estate tax to 2009 levels and eliminating unspecified tax breaks for investments held until death.

As with other candidates on the Democratic side, Sen Booker wants to increase and expand the earned income tax credit (EITC), too. He calls his initiative the "Rise Credit." Under his plan, couples with income up to $90,000 would qualify for the EITC (currently phased-out for couples with income above $55,952), the maximum credit would go up to $8,000 (from $6,557 for 2019), and childless taxpayers could see their credits rise from a maximum of $529 for 2019 to about $4,000.

The senator is also behind a bill in Congress that would toughen Opportunity Zone (OZ) Program reporting requirements so that lawmakers can more easily tell whether the program is actually helping distressed neighborhoods. The OZ Program, which was created by the 2017 tax reform law, lets taxpayers defer capital gains from the sale of property by investing the proceeds in opportunity funds, which help low-income communities. The OZ legislation Sen. Booker favors would require the government to collect data on the number of opportunity funds created and the impact the funds have on underserved communities. The data would be handed over to Congress each year.

SEE ALSO: Opportunity Zone Investing: Is It for You?

Steve Bullock

Getty Images

Home State: Montana

Age: 53

Highest Office: Governor of Montana

As far as federal taxes go, Gov. Steve Bullock has taken shots at the Tax Cuts and Jobs Act--as all the Democratic candidates have done--saying it benefits the wealthy, not working-class families. But that's not particularly revealing for voters who want to know what the governor would do as president.

Back in Montana, the governor claims to be a progressive who "gets things done." For example, he recently signed state legislation creating an earned income tax credit, allowing schools to impose taxes to pay for new safety measures (such as active shooter training) and raising the lodging tax. However, he was unable to get liquor and rental car tax increases through the state legislature.

Retirees will also be interested to know that Gov. Bullock recently vetoed a bill to increase Montana's income tax exemption for Social Security benefits. He said it would have disproportionately benefited high-income seniors.

SEE ALSO: 8 Tax Deductions Eliminated (or Reduced) Under the New Tax Law

Pete Buttigieg

Getty Images

Home State: Indiana

Age: 37

Highest Office: Mayor of South Bend, Ind.

Mayor Pete Buttigieg has also criticized the 2017 tax reform bill signed by President Trump, saying it just provided tax cuts for the wealthy--again, nothing new when it comes to the 2020 Democratic presidential candidates.

However, the mayor has hinted at a few tax increases that he would consider as president, including:

  • Higher income tax rates for the top brackets;
  • A "wealth tax" on the richest Americans;
  • A carbon tax;
  • A financial transactions tax; and
  • Eliminating unspecified corporate tax breaks.

He has also called for a "more equitable use of the estate tax," which could possibly mean lowering the exemption amount back down to pre-2010 levels.

SEE ALSO: States with No Estate Taxes or Inheritance Taxes

Julián Castro

Getty Images

Home State: Texas

Age: 44

Highest Office: U.S. Secretary of Housing & Urban Development

Julian Castro, former Secretary of the U.S. Department of Housing and Urban Development, has publicly stated that the top marginal income tax rate--currently set at 37%--should be raised. He has not, however, said how high the rate should go. Money generated from additional taxes on the wealthy and on corporations could be used to pay for universal health care if Castro is elected president. (When he was the mayor of San Antonio, Castro pushed through a sales tax increase to pay for a pre-K school program.)

To improve the nation's schools and education programs, Secretary Castro has proposed:

  • Tax credits to support on-the-job educational opportunities;
  • Non-taxable forgiveness of student loan debt after 240 monthly payments;
  • Tax exemptions for schools that give substantial financial aid to undergraduate students; and
  • $2,000 tax credits for teachers (larger credits for teachers in low-income areas).

SEE ALSO: Student Loans: To Solve the Problem, Understand the History

Bill de Blasio

Getty Images

Home State: New York

Age: 58

Highest Office: Mayor of New York City

Like other candidates in the race, New York City Mayor Bill de Blasio talks about taxing the wealthy at higher rates. In fact, he recently tried (unsuccessfully) to raise New York City's top income tax rate from 3.876% to 4.41% for couples with taxable income of more than $1 million and singles with taxable income over $500,000. He also supported the recent increase in the city's "mansion tax," which is imposed on home sales over $1 million.

Mayor de Blasio has worked to provide tax relief for ordinary New Yorkers, too. For instance, he supported plans to expand property tax exemptions for seniors and disabled persons, provide property tax relief to homeowners affected by Hurricane Sandy and allow residents to use pretax dollars to pay for commuting expenses.

When it comes to federal taxes, the mayor has been an outspoken critic of the Tax Cuts and Jobs Act since before the legislation was passed. Like other Democrats in the race, he believes the 2017 tax reform legislation is tilted in favor of corporations and the richest Americans.

SEE ALSO: States With a "Marriage Penalty" in Their Tax Brackets

John Delaney

Getty Images

Home State: Maryland

Age: 56

Highest Office: U.S. Representative

As the first Democrat to join the race, former Rep. John Delaney has had plenty of time to work on his policy proposals ... and he has quite a few ideas on taxes. He's in favor of increasing the top marginal income tax rate--but not all the way up to 70%, as has been suggested by some Democrats. He would roll back tax breaks for wealthy Americans enacted as part of the 2017 tax reform law, too. Doubling the earned income tax credit and expanding eligibility for adults without children are also on his list.

To pay for improvements to the nation's infrastructure, Rep. Delaney wants to increase the corporate tax rate from 21% to 27% and adjust the federal gas tax annually to account for inflation. His climate change plan calls for a carbon tax and having the revenue returned to the American people. (You could also invest your share of the tax revenue in an IRA, 529 plan or some other tax-advantaged savings account.) He also supports enhanced renewable energy tax credits to spur private sector investment in renewable energy.

Rep. Delaney is also calling for:

  • Tax credits to promote venture capital investments in minority-owned businesses;
  • A 1.5% surtax on income over $500,000 to pay for free pre-K programs; and
  • A pharmaceutical tax on drug companies charging more for prescription drugs in the U.S. than they charge in other developed countries.

SEE ALSO: 14 Tax Breaks You Won't Believe Are Real

Tulsi Gabbard

Getty Images

Home State: Hawaii

Age: 38

Highest Office: U.S. Representative

As a presidential candidate, Rep. Tulsi Gabbard hasn't talked all that much about taxes. She has repeated the standard Democratic line about the 2017 tax reform law overwhelmingly benefiting wealthier Americans, and she generally supports more taxes to pay for new social programs, but tax policy certainly doesn't seem to be at the center of her campaign.

Nevertheless, as a member of Congress, Rep. Gabbard has supported tax incentives that encourage or reward:

  • Businesses that help workers pay off student loans;
  • Lower prescription costs;
  • More low-income housing;
  • Veteran-owned small businesses;
  • Donations to political campaigns by ordinary Americans; and
  • Renewable energy creation and use.

SEE ALSO: Kiplinger's Easy-to-Use Tax Withholding Calculator

Kirsten Gillibrand

Getty Images

Home State: New York

Age: 52

Highest Office: U.S. Senator

Within her first 100 days as president, Sen. Kirsten Gillibrand wants to enact a "Family Bill of Rights." Under the plan, parents and children would have new rights to prenatal care, adoption, paid family leave, health care, preschool and other services to "ease the financial burden on families." To pay for the additional services, the senator is proposing a new 0.1% tax on stock sales and other financial transactions. Her plan also calls for (1) a refundable adoption tax credit and (2) an expanded child and dependent care credit of up to $6,000 that is refundable and available to more families.

Sen. Gillibrand is also pushing a public campaign financing plan that would allow voters to receive "democracy dollars" (vouchers) to assign to their favorite candidates in federal elections. The vouchers would be paid for by eliminating tax code provisions that allow some large corporations to deduct the salaries of their top executives. Sen. Gillibrand doesn't say if you'd have to pay tax on the democracy dollars you receive from the government--presumably not.

Along with unwinding the 2017 tax reform law's tax breaks for the wealthy and $10,000 cap on the state and local tax deduction, Sen. Gillibrand also wants to:

  • Create new tax incentives to encourage investment in renewable energy technology;
  • Offer tax-free college financial aid for people who commit to public service; and
  • Tax marijuana, which she wants to legalize.

SEE ALSO: Buy Marijuana Stocks Now? You'd Have to Be Stoned

Mike Gravel

Getty Images

Home State: California

Age: 89

Highest Office: U.S. Senator

Former Sen. Mike Gravel isn't really in the race to win it. He just wants to "push the field toward sane views on American imperialism and the need for fundamental political reform, and then endorse the most progressive candidate." Nevertheless, he does have a long list of progressive tax reform ideas that he supports, including:

  • Repatriating all wealth in offshore tax havens with a one-time 24% tax;
  • Taxing all financial transactions, including foreign exchange trading;
  • Increasing marginal tax rates on income over $1 million to 60%, over $5 million to 70%, over $10 million to 80% and over $20 million to 95%;
  • Raising the capital gains tax;
  • Eliminating all tax breaks that benefit oil, gas and coal companies;
  • Taxing initial public offerings, with greater taxation as the size of the IPO increases;
  • Repealing tax breaks for the wealthy;
  • Limiting tax breaks for households making more than $130,000 to $8,000 per year;
  • Instituting a carbon tax and dividend scheme, where all funds from the tax would be redistributed to American households;
  • Implementing an automatic tax filing system;
  • Enacting a vacancy tax on residential property that is unoccupied for six months or more;
  • Legalizing and taxing all drugs, including opioids; and
  • Expanding tax credits for making facilities accessible to Americans with disabilities.

QUIZ: Can You Tell If These Tax Deductions Legit?

Kamala Harris

Getty Images

Home State: California

Age: 54

Highest Office: U.S. Senator

Like the other Democratic candidates, Sen. Kamala Harris (D-Calif.) is no fan of the Tax Cuts and Jobs Act. "Get rid of the whole thing," she recently said. However, Sen. Harris is also pushing a few other tax proposals that go beyond just repealing President Trump's signature tax act, and they aren't quite as left-leaning as plans put forth by some of the other candidates. Instead of soaking the rich, her tax initiatives tend to provide tax breaks for middle- and lower-income taxpayers.

Her most noteworthy plan is to give tax credits of up to $6,000 per year to families earning less than $100,000 annually (up to $3,000 per year for single filers earning less than $50,000). Plus, the credit could be paid in advance--up to $500 per month for families, or $250 per month for singles.

She has also proposed creating a new tax credit for Americans who spend more than 30% of their earnings on rent. This credit would also be paid on a monthly basis to put money in renters' hands when the rent check is due.

In a nod to her fellow Californians, Sen. Harris is also backing legislation to exempt state earthquake mitigation assistance from federal tax.

SEE ALSO: 8 Ways You Might Be Cheating on Your Taxes

John Hickenlooper

Getty Images

Home State: Colorado

Age: 67

Highest Office: Governor of Colorado

Like most of his fellow Democrats, former Gov. John Hickenlooper would push for higher taxes on wealthy Americans and lower taxes on working families. For instance, he's open to raising the top individual income tax rate--which is currently set at 37%--but he has not said how high the top rate should go. (As one of the more moderate candidates in the race, he probably wouldn't back rates as high as other candidates have suggested.) He also supports expanding the earned income tax credit by doubling the credit for households with children, raising the maximum benefit for families that don't have children living at home, reducing the minimum qualifying age for taxpayers without children in their home from 25 to 21 and increasing the credit's income limit.

Gov. Hickenlooper also wants to change the way capital gains are taxed. For instance, he supports treating dividends and long-term capital gains as ordinary income (with exceptions for long-term capital gains linked to small businesses, primary residences and retirement accounts), including gains realized when the asset owner dies. He also wants to adjust taxable long-term gains to account for inflation over the period that an asset is held.

The former governor of Colorado is also pushing a few tax breaks designed to help rural communities. First, there's a new "mom and pop" tax credit for the owners of businesses with five or fewer full-time employees and annual revenues of less than $10 million. These owners would be allowed up to $50,000 in lifetime credits for new business investments or employment. Second, the governor is calling for a new Entrepreneurial Opportunity Zone Program, which would provide tax deductions for both new businesses and workers at new businesses in rural and distressed areas. The deductions would be available for five years. Finally, his plan to help rural America includes increased funding for the federal historic tax credit to boost investment in the renovation of historic buildings.

SEE ALSO: 12 Tax Breaks for Homeowners

Jay Inslee

Getty Images

Home State: Washington

Age: 68

Highest Office: Governor of Washington

Washington Gov. Jay Inslee's presidential campaign is pretty much focused on one issue: Climate change. So it's no surprise that all of his tax plans revolve around that issue. For example, Gov. Inslee supports tax incentives for:

  • Developing and deploying clean technologies, including renewable electricity, energy storage, smart grids, and advanced transmission and distribution systems;
  • Zero-emission vehicles, such as expanding the consumer electric vehicle tax credit;
  • Energy efficiency in new residential and commercial buildings, including tax breaks for the installation of high-efficiency heat pumps;
  • Upgrading HVAC units, water heaters and other systems in existing buildings to more energy-efficient systems;
  • New housing projects that are close to public transportation, which would help reduce commuting to work by car; and
  • Industrial waste-heat recovery and carbon capture.

He also want to repeal tax breaks for private jets, which he sees as a "giveaway to the wealthy that promotes unnecessary climate pollution from luxury travel."

It's somewhat surprising, though, that Gov. Inslee has not proposed a carbon tax so far in his presidential campaign. He pushed hard for a state carbon tax in Washington, but voters shot down a ballot initiative last November that would have imposed such a tax. (Maybe the governor learned a political lesson from that defeat?)

SEE ALSO: How to Invest for Climate Change

Amy Klobuchar

Getty Images

Home State: Minnesota

Age: 59

Highest Office: U.S. Senator

One policy area where Sen. Amy Klobuchar has several tax ideas is infrastructure improvement. Her plan to rebuild America's roads and bridges and upgrade other critical infrastructure systems would be paid for in part by raising the corporate income tax rate from 21% to 25%, eliminating tax breaks that encourage U.S. businesses to move overseas and increasing tax enforcement efforts. New tax credits to attract capital investment to public infrastructure and expanding clean energy tax incentives are also part of the plan.

Sen. Klobuchar is also behind efforts to boost retirement savings for working-class families by requiring minimum employer contributions to employee retirement accounts. Employers would receive a tax credit for 50% of their minimum contributions to their first 15 workers, and 25% of their minimum contributions to their next 15 workers. However, to pay for the tax credits, the plan calls for increasing the corporate income tax rate from 21% to 23% (a smaller increase than her infrastructure plan calls for) and bumping the top personal income tax rate from 37% back up to 39.6%, which was the top rate before the Tax Cuts and Jobs Act.

Other tax changes that Sen. Klobuchar supports include:

  • Taxing capital gains at ordinary tax rates;
  • Expanding the earned income credit and the child care credit;
  • Requiring hedge fund managers to pay more tax on investment earnings by taxing "carried interest" as ordinary income;
  • Taxing tech companies that sell their customers' private information; and
  • Repealing the medical device tax, which was part of the Affordable Care Act but has yet to go into effect.

SEE ALSO: Taxes in Retirement: How All 50 States Tax Retirees

Wayne Messam

Getty Images

Home State: Florida

Age: 45

Highest Office: Mayor of Miramar, Fla.

Like all the other Democrats running for president, Mayor Wayne Messam rails against President Trump's 2017 tax reform law. The condemnation is familiar--the Tax Cuts and Jobs Act, he says, disproportionately benefits big business and millionaires.

Beyond bashing the TCJA, Mayor Messam's overall plan to wipe out student loan debt has some tax proposals in it. First, any canceled student loan debt would not be taxable income under the plan. Second, Mayor Messam has called for a new payroll tax on employers to help offset the cost of higher education.

Mayor Messam also supports the legalization and taxation of marijuana.

SEE ALSO: Tax Tips for Gambling Income and Losses

Seth Moulton

Getty Images

Home State: Massachusetts

Age: 40

Highest Office: U.S. Representative

Rep. Seth Moulton wants to raise revenue for progressive causes, but he doesn't support "wealth taxes" or other soak-the-rich plans put forth by some other Democrats. Instead, he would prefer to see the corporate income tax rate increased to 25% and the capital gains tax on investments go up. He also supports comprehensive tax reform that would benefit families, students and small business owners.

Other tax proposals that Rep. Moulton backs include:

  • Repealing the medical device tax;
  • Eliminating corporate tax breaks to pay for expanded mental health services for veterans and high school students;
  • Imposing a carbon tax; and
  • Increasing the Social Security payroll tax and removing the cap on income subject to the tax (wages above $132,900 are currently not subject to the payroll tax).

SEE ALSO: Claim These Tax Deductions Even If You Don't Itemize

Beto O'Rourke

Getty Images

Home State: Texas

Age: 46

Highest Office: U.S. Representative

Former Congressman Beto O'Rourke hasn't discussed tax policy on the campaign trail as much as some of his rivals, and when he does talk taxes it's usually without much detail. For example, he has expressed a general desire to impose higher taxes on wealthy Americans, but he hasn't provided specifics. However, at the first Democratic presidential debate, he did call for taxing capital gains at the same rate as ordinary income and increasing the corporate tax rate from 21% to 28%.

For climate change, which he has focused on during his campaign, the tax changes Rep. O'Rourke proposed to pay for his $5 trillion plan are also vague--"structural changes to the tax code that ensure corporations and the wealthiest among us pay their fair share" and ending "tax breaks currently given to fossil fuel companies." He also supports the use of tax credits to spur investment in infrastructure and new technologies that will help cut pollution.

Rep. O'Rourke has provided a bit more detail regarding tax-related ideas concerning campaign finance and higher education. To get big money out of politics, he wants to make up to $500 in campaign contributions tax deductible. And he has called for an increase in the corporate income tax rate to pay for two free years of college for everyone.

For future wars, Rep. O'Rourke has proposed a new "war tax" to pay for improved health care for veterans. Only households without members or veterans of the U.S. Armed Forces would have to pay the progressive tax, which would range from $25 for taxpayers with an adjusted gross income (AGI) less than $30,000 to $1,000 for taxpayers with an AGI greater than $200,000.

SEE ALSO: 10 Best Financial Benefits for Military Families

Tim Ryan

Getty Images

Home State: Ohio

Age: 45

Highest Office: U.S. Representative

Rep. Tim Ryan is another Democratic challenger who hasn't said much or given specifics about tax policy while on the campaign trail. He's on the record for supporting higher taxes for people with income over $10 million, but he hasn't told us what he thinks the tax rates ought to look like for those taxpayers.

In the past, Rep. Ryan has called for expansion of the earned income tax credit and the child tax credit (common proposals for Democrats), as well as lower corporate tax rates in exchange for higher taxes on capital gains and dividends, which is a somewhat unique proposal for a Democrat (at least the part about lowering the corporate rate).

As a member of Congress, Rep. Ryan has introduced or sponsored tax-related bills that might provide clues as to what tax changes he would push for if elected president. For instance, he has recently backed legislation to:

  • Eliminate income taxes on Social Security benefits;
  • Create tax credits for new grocery stores or food banks in "food deserts" that offer healthy food in underserved communities;
  • Partially exempt alternative fuel trucks from the excise tax on heavy-duty trucks; and
  • Offer tax credits to employers that hire active members of the National Guard and Reserves.

These proposals will likely appeal to middle-class voters.

SEE ALSO: 10 Surprising Things That Are Taxable

Bernie Sanders

Getty Images

Home State: Vermont

Age: 77

Highest Office: U.S. Senator

As president, Sen. Bernie Sanders would push an ambitious progressive agenda that includes health care for all, jobs for all and college for all. So how would he pay for it all? Largely by taking away tax breaks or adding new taxes for corporations and the wealthy. However, taxes would go up for middle-class families as well under his Medicare-for-all plan.

One idea to tax the rich that Sen. Sanders has touted as a candidate is his plan to create a higher, progressive estate tax. For 2019, only estates worth more than $11.4 million are subject to the federal estate tax, which is imposed at a 40% rate. Under Sanders's plan, estates valued from $3.5 million to $10 million would be taxed at a 45% rate; estates valued from $10 million to $50 million, at a 50% rate; estates valued from $50 million to $1 billion, at a 55% rate; and estates valued at more than $1 billion, at a 77% rate.

In addition, Sen. Sanders wants a new financial-transactions tax on stock, bond and derivative trades. The tax rates would be 0.5% for stock trades, 0.1% for bond trades and 0.005% for derivative trades. He wants to eliminate the payroll tax exemption for wages above $250,000, too. Currently, wages above $132,900 are not subject to payroll taxes. (Under Sanders's plan, wages between $132,900 and $250,000 would still not be taxed.)

Rounding out his tax plans, Sen. Sanders is also calling for:

  • Taxing money that American corporations currently hold offshore;
  • Raising the top income tax rate (he proposed a 52% top rate during his 2016 presidential campaign); and
  • Ending the special (lower) tax rates for capital gains.

SEE ALSO: 18 Red Flags for IRS Auditors

Eric Swalwell

Getty Images

Home State: California

Age: 38

Highest Office: U.S. Representative

Despite his campaign slogan--"Go Big, Be Bold, Do Good"--Rep. Eric Swalwell doesn't have a big and bold tax plan to dangle before voters. However, that doesn't mean he ignores tax policy. He supports several incremental tax law changes, many of which are intended to benefit middle-class taxpayers. (Perhaps that falls under the "do good" category.)

Examples of tax proposals for ordinary Americans that Rep. Swalwell has introduced or supported in Congress include:

  • Raising the cap on earnings subject to the Social Security payroll tax to preserve and protect the system;
  • Allowing employers to make tax-free payments toward their workers' student loans;
  • Providing a $25 tax credit for campaign contributions; and
  • Offering tax credits to employers that provide internships or apprenticeships in STEM fields.

Rep. Swalwell isn't pushing anti-corporation tax plans, either. He has even open to reducing corporate taxes if workers also benefit through profit and equity sharing. He's also proposed legislation that would allow small businesses in distressed areas to defer payroll taxes for their first year, create a 30% tax credit for investment in offshore wind facilities, and make the research and development credit permanent.

SEE ALSO: 14 Nice-Try Tax Breaks Rejected by the IRS

Elizabeth Warren

Getty Images

Home State: Massachusetts

Age: 70

Highest Office: U.S. Senator

Out of all the Democrats running for president, Sen. Elizabeth Warren has arguably had the most to say about taxes as a candidate. It started back in January, when she proposed the Ultra-Millionaire Tax (also known as the "wealth tax"). The annual tax would be equal to 2% on net worth above $50 million and 3% on net worth above $1 billion. A taxpayer's "net worth" would consist of all assets worldwide, including residences, businesses, trusts, retirement funds and personal property worth $50,000 or more. Assets held by minor children would be counted, too. Other aspects of the plan include:

  • Minimum audit rates for taxpayers subject to the tax;
  • Deferred tax payments for up to five years for wealthy taxpayers with liquidity issues; and
  • A 40% "exit tax" on the net worth exceeding $50 million of U.S. citizens who renounce their citizenship.

Sen. Warren is pushing a similar proposal for corporate income taxes--the Real Corporate Profits Tax. Under her plan, there would be a 7% tax on all corporate profits reported to investors above $100 million. There would also be no exemptions or deductions for the new tax.

In 2019, Sen. Warren has also introduced or co-sponsored legislation in the U.S. Senate that would:

  • Allow same-sex couples to file amended returns to get refunds for tax years before they could file joint returns;
  • Create a new $3,000 tax credit for working family caregivers;
  • Exempt certain military survivor benefits received by children from the "kiddie tax" on unearned income of a child;
  • Treat "carried interest" profits received by fund managers as ordinary income rather than capital gains;
  • Expand the earned income tax credit and the child tax credit;
  • Allow graduate students to deposit funds from a stipend or fellowship into an IRA;
  • Establish a refundable adoption tax credit;
  • Provide a tax credit for donating land for the completion of America's national trail system;
  • Prevent drug manufacturers from claiming tax deductions for consumer advertising expenses;
  • Regulate tax preparers; and
  • Simplify and decrease the costs of filing taxes.

She also introduced a housing bill last year that would be funded by moving the estate tax thresholds back to their 2009 levels and establishing more progressive estate tax rates.

SEE ALSO: Tax Inequality: Where You Rank as a Taxpayer

Marianne Williamson

Getty Images

Home State: California

Age: 66

Highest Office: None

Author and motivational speaker Marianne Williamson is a newcomer to politics. On taxes, she has called for the repeal of the 2017 tax reform law--except for the provisions providing middle-class tax cuts--and eliminating corporate tax breaks. Williamson also supports additional taxes on the richest Americans. As president, she would impose an additional 3% tax on billionaires and 2% on those with income over $500 million.

To shore up Social Security, Williamson is in favor of raising the cap on income subject to the Social Security payroll tax.

Williamson also supports raising the estate tax. However, to avoid the closure of small businesses, she would put measures in place to help families of small-business owners who die to pay-off the estate tax bill over time.

Like several other candidates, Williamson also wants Wall Street fund managers to pay more tax on "carried interest." She is also open to a carbon tax.

SEE ALSO: The 10 Most Tax-Friendly States in the U.S.

Andrew Yang

Getty Images

Home State: New York

Age: 44

Highest Office: None

If elected president, entrepreneur Andrew Yang's first priority will be the creation of a universal basic income system that will pay every American adult $1,000 a month. But how's he going to pay for it? For the most part, with a new 10% value added tax (VAT).

Basically, a VAT is a consumption tax that is levied on businesses at each stage of the production process (including final sale) and based on the value added to a product during that stage. (Like other taxes imposed on businesses, VATs are often passed on to consumers in the form of higher prices.) The value added is measured by the difference between the business's sales and costs. For example, Company A creates a widget from scratch (with no costs for supplies) and sells it to Company B for $10. Company B uses the widget as a component part in a thingamabob it sells to Company C for $30. Company C sells the thingamabob to you for $45. Company A is taxed on the $10 of value it added ($10 - $0) to the final product, Company B is taxed on the $20 of value it added ($30 - $10) and Company C is taxed on the $15 of value it added ($45 - $30). Although Americans generally aren't familiar with VATs, they're widely used in other countries around the world.

Yang has a few other tax ideas, too. For instance, he wants to end favorable tax treatment for capital gains and carried interest. He is also proposing a 0.1% tax on financial transactions. If you don't like filling out tax forms, you could be in luck: Yang would let you opt into an IRS program to have your taxes filed automatically. Finally, to "make paying taxes patriotic and fun," he thinks everyone should be able to direct 1% of their taxes to a specific government project of their choice.

SEE ALSO: What Are the Income Tax Brackets for 2019 vs. 2018?

Copyright 2019 The Kiplinger Washington Editors