The Democratic candidates’ tax plans: Changes for businesses

Democratic candidates for the presidency have offered a variety of different ideas, but have appeared to coalesce around a handful of common concepts. To get a sense of where they stand, the individual candidates' positions on a number of changes for business taxes are laid out below.

For more, learn about their positions on individual taxes, and read Grant Thornton's analysis of the overall trends among the Democratic contenders.

Sen. Michael Bennet (D-Colorado)
Senator Michael Bennet, a Democrat from Colorado and 2020 presidential candidate, speaks during theIowa Federation of Labor AFL-CIO annual convention in Altoona, Iowa, U.S., on Wednesday, Aug. 21, 2019. Photographer: Daniel Acker/Bloomberg
Corporate rate: Raise rate to 28%

Financial transactions: NA

Climate tax changes: NA

Other business changes:
· Repeal pass-through deduction
· “Crack down” on tax evasion by multinational corporations
· Fee on high-risk funding by large financial institutions
Vice President Joe Biden
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Corporate rate: Raise rate to 28%

Financial transactions: NA

Climate tax changes:
· Incentives for carbon capture, use, and storage technology
· Credits aimed at new manufacturing investments and low-carbon technologies
· Restore full electric vehicle credit
· Tax credits to combat climate change in housing
· End fossil fuel tax breaks

Other business changes:
· “Tax break” for small businesses that start a retirement plan
· Tax credits to small businesses to offset costs of a workplace savings plan
· Tax penalty on drug manufacturers that increase prices more than inflation
· Repeal deduction for prescription drug advertising
· Double GILTI to 21%
· Impose sanctions on foreign tax havens to improve compliance
· Tighten rules on pass-through deduction
· 15% corporate minimum tax on book profits
Mayor Michael Bloomberg
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Corporate rate: Raise to 28%

Financial transactions: NA

Climate tax changes: NA

Other business changes:
· Repeal pass-through deduction
· Tax carried interest at ordinary rates
· Raise GILTI rate and apply it on a country-by-country basis
· Tighten transfer pricing and foreign tax reporting rules
· "Pressure" countries that establish tax havens
· Lead efforts to “defeat profit shifting”
Mayor Pete Buttigieg
Pete Buttigieg, former mayor of South Bend and 2020 presidential candidate, speaks with attendees during a campaign event in Ames, Iowa, U.S., on Wednesday, Jan. 29, 2020.
Corporate rate: NA

Financial transactions: Unspecified financial transactions tax

Climate tax changes: NA
· Unspecified carbon tax
· Home energy efficiency improvement vouchers

Other business changes:
· Eliminate “corporate tax breaks”
· Higher taxes on drug companies that don’t negotiate drug price reductions (65% on gross sales, increasing by 10% each quarter until 95%)
Rep. Tulsi Gabbard (D-Hawaii)
COLUMBIA, SC - OCTOBER 27: Tulsi Gabard, US Representative from Hawaii and 2020 Democratic presidential candidate, speaks during the 2019 Second Step Presidential Justice Forum in Columbia, South Carolina, U.S., on Sunday, Oct. 27, 2019. The forum asked each participant to focus on what's next now that the First Step Act has been passed. Photographer: Logan Cyrus/Bloomberg
Corporate rate: NA

Financial transactions: NA

Climate tax changes: Ending “subsidies and tax incentives” for fossil fuels

Other business changes: NA
Sen. Amy Klobuchar (D-Minnesota)
Sen. Amy Klobuchar, D-Minn.
Corporate rate: Raise rate to 25%

Financial transactions: NA

Climate tax changes: NA

Other business changes:
· Close certain “corporate loopholes”
· 2¢ per mg tax on opioids
· Employer tax credits for minimum contributions to employee retirement accounts: 50% to first 15 workers, 25% to next 15 works.
· “Crack down” on international tax havens.
· Repeal “regressive portions” of TCJA.
Governor Deval Patrick
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Corporate rate: Raise rate to 25%

Financial transactions: NA

Climate tax changes: NA

Other business changes: End unspecified loophole to ensure corporations don’t pay $0 in income taxes.
Sen. Bernie Sanders (D-Vermont)
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Corporate rate: Raise rate to 35%

Financial transactions: Financial transactions tax: 0.5% on stocks; 0.1% on bonds; 0.005% on derivatives

Climate tax changes: Eliminate “tax breaks” for fossil fuel industry

Other business changes:
· Tax corporate money held offshore
· Corporate tax surcharge if CEO or highest-paid employee salary exceeds median salary by at least 50:1, starting at +0.5% for 50:1 and rising to +5% for 500:1.
· Legalize marijuana and tax sales
Tom Steyer (billionaire fund manager)
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Corporate rate: NA

Financial transactions: NA

Climate tax changes: NA

Other business changes: NA
Sen. Elizabeth Warren (D-Massachusetts)
Sen. Elizabeth Warren, D-Mass.
Corporate rate: NA

Financial transactions: Financial transactions tax of 0.1% on stocks, bonds, and derivatives

Climate tax changes: NA

Other business changes:
· New corporate AMT taxing ever dollar or “profits” over $100 million at 7%
· Tax on lobbying expenditures: 35% between $500k and $1M; 60% over $1M; and 75% over $5M
· Risk fee on banks with more than $50B in assets
· Eliminate accelerated depreciation with system based on actual loss in value
· Country-by-country minimum tax on foreign earnings at a rate equal to the difference between 35% and the foreign rate
Andrew Yang (entrepreneur and philanthropist)
Andrew Yang, founder of Venture for America and 2020 Democratic presidential candidate, speaks during the Democratic National Committee (DNC) Summer Meeting in San Francisco, California, U.S., on Friday, Aug. 23, 2019. More than a dozen presidential candidates are descending on San Francisco this week to try and wow DNC members at their annual summer meeting. Photographer: Michael Short/Bloomberg
Corporate rate: NA

Financial transactions: Financial transactions tax of 0.1%

Climate tax changes: Unspecified carbon tax

Other business changes: Create 10% VAT