3 things Hillary Clinton just said about your taxes

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Voters have seen plenty of surprises during the 2016 presidential campaign race, but the issues that matter most to them are still the key to how they'll vote come November. One of the most important issues facing many Americans is their taxes, and in Sunday's debate, both candidates talked about the changes they would make in order to make the U.S. tax system fair for all. In particular, Democratic candidate Hillary Clinton offered a few key points that shed some light on how she thinks the wealthiest Americans can pay their fair share in taxes.

1. Keep taxes unchanged for most taxpayers.

I have said nobody who makes less than $250,000 a year -- and that's the vast majority of Americans, as you know -- will have their taxes raised.

Clinton has said that she wants to restore basic fairness in the tax code, and she's made it clear that imposing more taxes on high-income taxpayers is the way to accomplish it. As Clinton said Sunday night, "We have got to go where the money is, and the money is with people who have taken advantage of every single break in the tax code."

RELATED: Hillary Clinton on taxes

As you'll see below, most of the changes that Clinton has proposed target those with incomes of $1 million or more. Yet a few, such as changing long-term capital gains rates and limiting the value of itemized deductions for high-income taxpayers, could potentially affect those who make far less than $1 million. With her statement, Clinton narrowed in on the quarter-million-dollar mark as a dividing line for determining the future course of tax policy.

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Reed Hastings, CEO of Netflix

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Drew Houston, CEO of Dropbox

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David Karp, CEO of Tumblr 

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Rob Marcus, CEO of Time Warner

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Lloyd Blankfein, Chairman and CEO of Goldman Sachs

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2. Implement the Buffett rule -- with a twist.

I want to have a tax on people who are making $1 million; it's called the Buffett rule. ... I want to have a surcharge on incomes above $5 million.

Clinton once again affirmed her support of the Buffett rule. The name comes from investor Warren Buffett, who has said in the past that he typically pays a lower tax rate than his secretary on their respective incomes. Buffett's assertion takes into account not only individual income taxes but also the regressive nature of Social Security taxation, which imposes a sizable payroll tax on the first $118,500 of compensation but then disappears for higher-income taxpayers.

RELATED: Comparing presidential candidate proposed tax plans

Clinton has said in the past that she would impose a 30% minimum tax rate on those who earn $1 million or more. Last night, she also repeated her call for an additional surcharge on those earning $5 million or more, adding 4 percentage points to marginal tax rates. Overall, Clinton believes that focusing higher taxes on the top end of the income spectrum is appropriate because of her view that gains in income have gone disproportionately to higher-income taxpayers.

3. Eliminate the carried interest provision.

I have been in favor of getting rid of carried interest for years, starting when I was a senator from New York.

One rare area of agreement between Clinton and Trump is in eliminating the carried interest provision. The much-publicized tax break offers capital gains treatment to that share of profits that general partners of private investment funds take as contractual compensation for their services. The net result is that the individual managers who work for the private equity and hedge funds that take advantage of carried interest pay favorable tax rates on that portion of the money they receive for their work, even though other Wall Street professionals doing similar work have salary and bonus income taxed at ordinary rates.

Clinton would treat carried interest as ordinary income, and given that many money managers are among the high-income echelon that her tax proposals target, they would end up paying the higher tax rates found elsewhere in the candidate's proposals. Opponents of eliminating carried interest note that unlike those who get paid salaries, taking a share of profits leaves them at risk of receiving nothing if the fund doesn't earn a profit. That makes the individual managers resemble business owners risking their capital on the success of their work, and many such business owners can claim favorable tax treatment when they do well. Yet others still see the money as essentially being compensation, making ordinary income treatment appropriate.

Overall, Clinton has taken the position that raising tax rates is not only fair will create additional revenue that the government can use to create good-paying jobs, improving the economy and making it more competitive. Whether you agree or disagree, Clinton has made that idea of basic fairness the centerpiece of her tax strategy, and taxpayers can expect future tax changes to follow that general ideology if Clinton wins the election in November.

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Donald Trump, Hillary Clinton take the stage for the second presidential debate
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Donald Trump, Hillary Clinton take the stage for the second presidential debate
Republican U.S. presidential nominee Donald Trump and Democratic U.S. presidential nominee Hillary Clinton acknowledge each other at the start of their presidential town hall debate at Washington University in St. Louis, Missouri, U.S., October 9, 2016. REUTERS/Jim Young
Republican U.S. presidential nominee Donald Trump and Democratic U.S. presidential nominee Hillary Clinton stand together at the start of their presidential town hall debate at Washington University in St. Louis, Missouri, U.S., October 9, 2016. REUTERS/Jim Young
Republican U.S. presidential nominee Donald Trump speaks as Democratic U.S. presidential nominee Hillary Clinton listens during their presidential town hall debate at Washington University in St. Louis, Missouri, U.S., October 9, 2016. REUTERS/Lucy Nicholson
Republican U.S. presidential nominee Donald Trump and Democratic U.S. presidential nominee Hillary Clinton appear together during their presidential town hall debate at Washington University in St. Louis, Missouri, U.S., October 9, 2016. REUTERS/Mike Segar
Republican U.S. presidential nominee Donald Trump listens as Democratic U.S. presidential nominee Hillary Clinton speaks during their presidential town hall debate with at Washington University in St. Louis, Missouri, U.S., October 9, 2016. REUTERS/Saul Loeb/Pool
Democratic U.S. presidential nominee Hillary Clinton speaks during their presidential town hall debate with Republican U.S. presidential nominee Donald Trump at Washington University in St. Louis, Missouri, U.S., October 9, 2016. REUTERS/Saul Loeb/Pool
Republican U.S. presidential nominee Donald Trump speaks at the start of the second U.S. presidential town hall debate between Trump and Democratic U.S. presidential nominee Hillary Clinton at Washington University in St. Louis, Missouri, U.S., October 9, 2016. REUTERS/Jim Young
Republican U.S. presidential nominee Donald Trump speaks as Democratic U.S. presidential nominee Hillary Clinton listens and takes notes during their presidential town hall debate at Washington University in St. Louis, Missouri, U.S., October 9, 2016. REUTERS/Jim Young
Republican U.S. presidential nominee Donald Trump turns his back as Democratic U.S. presidential nominee Hillary Clinton talks about his comments about women during their presidential town hall debate at Washington University in St. Louis, Missouri, U.S., October 9, 2016. REUTERS/Jim Bourg
Moderators Anderson Cooper and Martha Raddatz speak before the start of the second U.S. presidential debate between Republican U.S. presidential nominee Donald Trump and Democratic U.S. presidential nominee Hillary Clinton at Washington University in St. Louis, Missouri, U.S., October 9, 2016. REUTERS/Jim Young
Melania Trump, Ivanka Trump, Eric Trump and Donald Trump Jr. stand before the presidential town hall debate between Republican U.S. presidential nominee Donald Trump and Democratic U.S. presidential nominee Hillary Clinton at Washington University in St. Louis, Missouri, U.S., October 9, 2016.
Republican U.S. presidential nominee Donald Trump and Democratic U.S. presidential nominee Hillary Clinton acknowledge each other at the start of their presidential town hall debate at Washington University in St. Louis, Missouri, U.S., October 9, 2016. REUTERS/Saul Loeb/Pool
Republican U.S. presidential nominee Donald Trump speaks during the second U.S. presidential town hall debate between Trump and Democratic U.S. presidential nominee Hillary Clinton at Washington University in St. Louis, Missouri, U.S., October 9, 2016. REUTERS/Jim Young
Republican U.S. presidential nominee Donald Trump speaks as Democratic U.S. presidential nominee Hillary Clinton listens during their presidential town hall debate at Washington University in St. Louis, Missouri, U.S., October 9, 2016. REUTERS/Jim Young
Democratic U.S. presidential nominee Hillary Clinton speaks during the second U.S. presidential town hall debate between Clinton and Republican U.S. presidential nominee Donald Trump at Washington University in St. Louis, Missouri, U.S., October 9, 2016. REUTERS/Jim Young
Democratic U.S. presidential nominee Hillary Clinton listens during their presidential town hall debate with Republican U.S. presidential nominee Donald Trump at Washington University in St. Louis, Missouri, U.S., October 9, 2016. REUTERS/Rick Wilking
The family of U.S. Republican presidential nominee Donald Trump, (L-R) Melania, Ivanka, Eric and Donald Jr. wait for the presidential town hall debate with U.S. Democratic presidential nominee Hillary Clinton at Washington University in St. Louis, Missouri, U.S. October 9, 2016. REUTERS/Brian Snyder
Marc Mezvinsky, Chelsea Clinton and Former U.S. President Bill Clinton sit at the presidential town hall debate between Republican U.S. presidential nominee Donald Trump and Democratic U.S. presidential nominee Hillary Clinton at Washington University in St. Louis, Missouri, U.S., October 9, 2016. REUTERS/Jim Bourg
Republican U.S. presidential nominee Donald Trump listens as Democratic nominee Hillary Clinton answers a question from the audience during their presidential town hall debate at Washington University in St. Louis, Missouri, U.S., October 9, 2016. REUTERS/Rick Wilking
Democratic U.S. presidential nominee Hillary Clinton speak during her debate against Republican U.S. presidential nominee Donald Trump (L) at Washington University in St. Louis, Missouri, U.S., October 9, 2016. REUTERS/Jim Young
Republican U.S. presidential nominee Donald Trump speaks during his presidential town hall debate against Democratic U.S. presidential nominee Hillary Clinton (not shown) at Washington University in St. Louis, Missouri, U.S., October 9, 2016. REUTERS/Aaron P. Bernstein
Republican U.S. presidential nominee Donald Trump speaks during the presidential town hall debate with Democratic U.S. presidential nominee Hillary Clinton at Washington University in St. Louis, Missouri, U.S., October 9, 2016. REUTERS/Shannon Stapleton TPX IMAGES OF THE DAY
Republican U.S. presidential nominee Donald Trump and Democratic U.S. presidential nominee Hillary Clinton speak during their presidential town hall debate at Washington University in St. Louis, Missouri, U.S., October 9, 2016. REUTERS/Jim Young TPX IMAGES OF THE DAY
U.S. Democratic presidential nominee Hillary Clinton and her husband, former U.S. President Bill Clinton, board her campaign plane after the presidential town hall debate against U.S. Republican presidential nominee Donald Trump in St. Louis, Missouri, U.S. October 9, 2016. REUTERS/Brian Snyder
Former U.S. President Bill Clinton watches as Republican U.S. presidential nominee Donald Trump (L) and his wife, Democratic U.S. presidential nominee Hillary Clinton, participate in their presidential town hall debate at Washington University in St. Louis, Missouri, U.S., October 9, 2016. REUTERS/Shannon Stapleton
Democratic U.S. presidential nominee Hillary Clinton speaks during their presidential town hall debate with Republican U.S. presidential nominee Donald Trump at Washington University in St. Louis, Missouri, U.S., October 9, 2016. REUTERS/Lucy Nicholson
Republican U.S. presidential nominee Donald Trump speaks during the presidential town hall debate with Democratic U.S. presidential nominee Hillary Clinton at Washington University in St. Louis, Missouri, U.S., October 9, 2016. REUTERS/Shannon Stapleton
Republican U.S. presidential nominee Donald Trump and Democratic U.S. presidential nominee Hillary Clinton pause at the conclusion of their presidential town hall debate at Washington University in St. Louis, Missouri, U.S., October 9, 2016. REUTERS/Saul Loeb/Pool
Republican U.S. presidential nominee Donald Trump speaks as Democratic U.S. presidential nominee Hillary Clinton listens during their presidential town hall debate at Washington University in St. Louis, Missouri, U.S., October 9, 2016. REUTERS/Saul Loeb/Pool
Democratic U.S. presidential nominee Hillary Clinton speaks during the presidential town hall debate with Republican U.S. presidential nominee Donald Trump at Washington University in St. Louis, Missouri, U.S., October 9, 2016. REUTERS/Lucy Nicholson
Republican U.S. presidential nominee Donald Trump listens as Democratic U.S. presidential nominee Hillary Clinton speaks during their presidential town hall debate with at Washington University in St. Louis, Missouri, U.S., October 9, 2016. REUTERS/Shannon Stapleton
(L-R) Kathleen Willey, Juanita Broaddrick and Kathy Shelton sit together in the audience before Republican U.S. presidential nominee Donald Trump and Democratic U.S. presidential nominee Hillary Clinton begin their presidential town hall debate at Washington University in St. Louis, Missouri, U.S., October 9, 2016. REUTERS/Mike Segar
Republican U.S. presidential nominee Donald Trump speaks as Democratic U.S. presidential nominee Hillary Clinton listens during their presidential town hall debate at Washington University in St. Louis, Missouri, U.S., October 9, 2016. REUTERS/Lucy Nicholson
Republican U.S. presidential nominee Donald Trump's daughters-in-laws Lara Trump, Vanessa Trump and daughter Tiffany Trump (L-R) are seated at the start of the second U.S. presidential town hall debate between Trump and Democratic U.S. presidential nominee Hillary Clinton at Washington University in St. Louis, Missouri, U.S., October 9, 2016. REUTERS/Jim Young
Chelsea Clinton and Former U.S. President Bill Clinton arrive at the presidential town hall debate between Republican U.S. presidential nominee Donald Trump and Democratic U.S. presidential nominee Hillary Clinton at Washington University in St. Louis, Missouri, U.S., October 9, 2016. REUTERS/Rick Wilking
Republican U.S. presidential nominee Donald Trump and Democratic U.S. presidential nominee Hillary Clinton face the audience during their presidential town hall debate at Washington University in St. Louis, Missouri, U.S., October 9, 2016. REUTERS/Lucy Nicholson
Republican U.S. presidential nominee Donald Trump looks at Democratic U.S. presidential nominee Hillary Clinton during their presidential town hall debate at Washington University in St. Louis, Missouri, U.S., October 9, 2016. REUTERS/Jim Young TPX IMAGES OF THE DAY
Republican U.S. presidential nominee Donald Trump is seen during his presidential town hall debate against Democratic U.S. presidential nominee Hillary Clinton (not shown) at Washington University in St. Louis, Missouri, U.S., October 9, 2016. REUTERS/Jim Young
Journalists Anderson Cooper and Martha Raddatz prepare to moderate the presidential town hall debate between U.S. Democratic presidential nominee Hillary Clinton and U.S. Republican presidential nominee Donald Trump at Washington University in St. Louis, Missouri, U.S. October 9, 2016. REUTERS/Brian Snyder
Democratic U.S. presidential nominee Hillary Clinton makes her opening remarks at the start of the second U.S. presidential town hall debate between Clinton and Republican U.S. presidential nominee Donald Trump at Washington University in St. Louis, Missouri, U.S., October 9, 2016. REUTERS/Jim Young
Republican U.S. presidential nominee Donald Trump and Democratic U.S. presidential nominee Hillary Clinton take the stage at the start of their presidential town hall debate at Washington University in St. Louis, Missouri, U.S., October 9, 2016. REUTERS/Jim Bourg
Republican U.S. presidential nominee Donald Trump and Democratic U.S. presidential nominee Hillary Clinton shake hands at the end of their presidential town hall debate at Washington University in St. Louis, Missouri, U.S., October 9, 2016. REUTERS/Jim Young TPX IMAGES OF THE DAY
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