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Election Day will be here before you know it. Both presidential hopefuls Donald Trump and Hillary Clinton have already disclosed some major changes they would like to make to our current tax system including tax brackets, estate tax and investment income.

The current tax code puts individual taxpayers into one of seven brackets, wherein tax rates range from 10% to 39.6%. Trump is looking to establish four brackets with rates of 0%, 10%, 20% and 25%. The top rate would apply to $150,000 single ($300,000 joint filer). Clinton is looking to add a 4% surtax to filers with adjusted gross income (AGI) above $5,000,000 while keeping the current tax rates the same.

Currently the estate tax has a $5.45 million per person exemption (indexed for inflation) which affects just .2% of estates. Clinton's plan is to reduce this exemption to $3.5 million (not indexed for inflation) and increase the tax rate from 40% to 45%. This would affect .4% of estates now and possibly more in the future as inflation rises. Trump's proposed plan is to eliminate the estate tax altogether.

Short-term capital gains are currently defined as realized gains on investments held less than one year and are taxed as ordinary income. Gains on investments held longer than a year are taxed at either a 0%, 15% or 20% rate depending on which marginal tax bracket you fall into. Clinton is looking at extending the short term holding period from one to two years in which ordinary tax rates apply. In addition, investments held between two and six years would have tax rates ranging from 24% to 39.6%. After six years, the 20% tax bracket would apply. Trump is looking at elimination of the net investment income tax that has a current rate of 3.8% while leaving the capital gain structure intact.

Keep in mind that any actual changes to the tax code will have to go through Congress before it can be enacted.