On Wednesday, I wrote an article about the Mark Everson tax plan. Today, I am writing my article about Florida Senator and 2016 Republican Presidential Candidate Marco Rubio’s plan. Rubio’s plan can be read here. The bill introduced into the Upper Chamber by Senators Rubio and Lee focuses on simplification, lowering rates, closing loopholes and removing areas of double taxation.
The first change in the plan would be to simplify the rates of the tax plan: rather than the numerous rates we have now, there would only be two rates: 35% and 15%. The proposal also includes huge tax cuts for families, expanding the child tax credit and allowing it to be applied to both personal income and payroll taxes. He is also abolishing the so-called Death Tax, or Estate Tax, something that 77% of Americans believe to be unfair.
Rubio’s plan also cuts down the corporate tax rates. Currently, corporate investments are taxed twice: first under the corporate income tax and then the returns from the investment are taxed. The Rubio plan would cut down the Corporate Tax Rate to 25%, and abolish taxes on dividends and capital gains.
Finally, the Rubio plan calls for a reforming of the Earned Income Tax Credit. Currently, low-income Americans receive benefits from the Earned Income Tax Credit, or EITC. There is no overriding policy dictating eligibility for this credit. The Rubio sets one that provides incentives for work and employment.