Rubio: “The sum of this plan is the hope of triggering economic growth, because we believe economic growth is the first step in a multi-step process towards bringing America fully into the opportunities of the 21st century.”
Washington, D.C. – U.S. Senators Marco Rubio (R-FL) and Mike Lee (R-UT) today unveiled their Economic Growth and Family Fairness Tax Reform Plan. In an effort to fix our broken tax code system, Rubio and Lee outlined their plan to eliminate the bias in the tax code against parents and families, encourage economic growth to create more jobs and better wages, and enhance the ability of businesses to compete globally.
An excerpt of Rubio’s opening remarks is below, and a video of the remarks, which includes remarks in Spanish, is available here.
“We have to confront these 21st century challenges with 21st century solutions. And today is the first step in part of that process of how we confront it. The first thing we have to do is we have to become globally competitive again. We have to make America the best place in the world for people to do business, to invest and to innovate. And one of the ways we can do that is by reforming our tax code to become a pro-investment tax code, a pro-growth tax code. And that’s what the business tax reforms embedded in this plan here today would do.
“The business tax reforms that we’re proposing will once again make America the best place in the world to invest and innovate. And our goal is to ensure that when companies and employers and entrepreneurs and innovators make a choice of where it is they’re going to create jobs, where it is they’re going to start their new business, where it is they’re going to expand – they’ll choose America before they choose anyone else.
“The second thing embedded in these tax reforms is we wanted to empower individual Americans, particularly families – hardworking parents who are struggling with the cost of raising children in the 21st century. And our tax reforms recognize that our current structure today penalizes families who are raising our future taxpayers. And so you will see that reflected in our individual tax reforms.
“The sum of this plan is the hope of triggering economic growth, because we believe economic growth is the first step in a multi-step process towards bringing America fully into the opportunities of the 21st century.”
More information about the Lee-Rubio tax plan is available here.
The Individual Tax Reforms:
- Cut & simplify rates: 15% up to $75,000 ($150,000 married), 35% above
- Create new $2,500 child credit, applicable to income and payroll tax liability, to offset parent tax penalty
- Eliminate other itemized deductions, except mortgage interest and charitable giving, which are now available to all filers
- Eliminate double taxation of capital gains and dividends, & ends estate taxes
- Eliminate marriage penalty and AMT
The Business Tax Reforms:
- Consolidate all corporate taxes into single-layer tax of 25% (down from 35%), improving global competitiveness
- Cap pass-through business income tax rate at 25%, leveling the playing field between small and large businesses
- Allow immediate expensing, ending federal taxation of business investment
- Eliminate unfair carve-outs benefiting large corporations & high-tax states
- Adopt territorial tax system, so U.S. companies can better compete abroad
Lower rates, full expensing, ending capital gains and dividends taxes, and global competitiveness will spur job creation, investment, business formation, and wage growth. Tax-free reinvestment and ending corporations’ debt advantage and carve-outs will intensify competitive pressure on incumbent firms, reward innovative entrepreneurs, empower consumers, and increase opportunities for all Americans.
Ending the tax code’s marriage and parent penalties will level the playing field for working families and finally end the tax code’s unfair discrimination our ultimate investor class, America’s moms and dads.
21st Century Solutions:
The tax code today actively discourages work, saving, investment, entrepreneurism, and family formation. Meanwhile, it incentivizes local politicians to raise taxes and businesses to invest and incorporate overseas. The Lee-Rubio plan corrects all of these distortions: it levels the playing field for all families, businesses, and communities; encourages domestic and foreign investment in the U.S.; rewards the most innovative entrepreneurs, and puts corporations back to work for the rest of us. Pro-family and pro-growth reform aren’t mutually exclusive – they are both exactly what we need today to grow our economy, expand opportunity, and revive the American Dream.