Morning or Midnight in America? 9 Questions for the Presidential Candidates

High-earning taxpayers could pay 39.6% at the top marginal federal tax rate, a 2.35% Medicare payroll tax, a 3.8% Medicare surtax and a 6.2% Social Security payroll tax on a portion of their income. In California, the highest earners have a marginal tax rate of 13.3%, a temporary surcharge that may be extended. Tax fairness is frequently discussed in political campaigns, though in total, the top earning 1% of Americans pay more than 40% of individual income taxes in the U.S. It seems reasonable to ask what each candidate considers to be the fair share for the top earners — is 40% fair or should that number be higher or lower?

Reforming the tax code is a popular topic, with each candidate promising to close loopholes in order to provide relief to the middle class. But often one person's loophole is another's "sacred cow." Unfortunately, the greatest revenue benefits involve eliminating or limiting some of the most popular deductions, such as charitable contributions, state taxes and mortgage interest. Without more in the way of specifics, it's hard to evaluate the viability of tax relief plans for the middle class. Trump's initial tax plan was estimated to increase the deficit by $10 trillion. The revised plan rumored to be on its way would be less expensive, but still is thought to increase the deficit by more than $3 trillion. It's hard to see where that money will come from.

Voters looking for reasons to be cynical about policymaking in Washington, D.C., can look at the corporate tax code to confirm their cynicism. Rhetoric calling corporate CEOs "traitors" for inversions and other legal tax maneuvers seems excessive, but there are some legal but unsavory tax practices of multinational companies that makes corporate tax reform seem a must for the next president.

5. How will your trade policies help the country? Trade has been a dominant campaign issue, with the candidates promising to take varying actions to bring jobs back to the U.S. Oaktree Capital Management's Howard Marks wrote in June: "U.S. manufacturing employment of 12.3 million workers is down 37% from the peak of 19.5 million reached in 1979. So when did the value of manufacturing hit its peak? [Today!] The current level of U.S. manufacturing output is in the vicinity of the all-time high and roughly double the 1979 level. [If] we were producing today's output at the 1979 level of productivity, we'd be employing 25 million more workers! So while we've lost 3.2 million jobs to China since 2001, for example, we've lost many more times that to improvements in productivity. [Emphasis mine.]" A discussion of trade policies and intellectual property protection with China is an important and obvious area for discussion, but the role of technology in disrupting industries and middle class mobility is an equally important part of the trade and jobs debate.

6. What steps will you take to make America a safer place and Americans safer around the world? Statistics indicate that Americans are more likely to die in a car crash or get hit by lightning than be a victim of a terrorist attack. I'm willing to take my chances with aggressive Boston drivers and California earthquakes, but I don't want to lose life or limb at the hands of terrorists who demonstrate no regard for human life. Most people I know feel the same way. Terrorism is not part of our social contract, and we want to know what the next president will do to keep us safe.

7. What will you do to unite the country? Eileen McNamara, the former Boston Globe op-ed writer portrayed in the movie "Spotlight," said in a recent talk, "We have an obligation to listen to people who disagree with us." As president, you would be responsible for more than 300 million people, many of whom won't have voted for you. Do you see yourself as the representative of all the people, or just those that voted for you? Is it a priority for you to lead supporters and opponents, or will you govern solely on behalf of those who share your point of view?

8. What is the role of the press in a free society? Neither candidate is considered a beacon of support for the press. Trump revoked press credentials for publications that offended him, most notably by calling The Washington Post "phony" and "dishonest." His attacks on Fox's Megyn Kelly, and tirades and threats against reporters who ask probing questions, demonstrate his distrust of an independent media.

Clinton has a less openly combative approach, but she is also known for her discomfort with the press — with mutual distrust that goes back to her secrecy about health care reform during her husband's presidency and extends to her use of a personal email server while serving as Secretary of State.

9. What do you consider the role of the judiciary to be, and what is your philosophy about the separation of powers between the branches of government? Trump made this a campaign issue by equating ethnicity with bias in his attacks on U.S. District Judge Gonzalo Curiel, and showing a worrying lack of respect for separation of powers between branches of government.

Investors usually downplay the influence of American elections on their investment positioning, working under the assumption that candidates will either moderate their positions in order to get elected or that gridlock in Washington will prevent too much in the way of extreme outcomes. This election is different, as the issues discussed above will have a very real impact on financial markets. Seeking candid and thoughtful answers from the candidates will be vitally important to advisors trying to help their clients make sound investment and planning decisions.

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