Free Republic
Browse · Search
News/Activism
Topics · Post Article

Skip to comments.

Why the Rubio-Lee tax plan is great politics — and great policy
The Week ^ | 10/03/2014 | By Pascal-Emmanuel Gobry

Posted on 10/03/2014 3:26:55 PM PDT by SeekAndFind

The Republican Party has become the party of ideas again. You can see it in the new tax reform plan put out by Tea Party Sens. Mike Lee (Utah) and Marco Rubio (Fla.).

Their plan would simplify the income tax system, setting just two rates: 15 percent and 35 percent. More importantly, it would add a $2,500 child tax credit, refundable against both income and payroll taxes, to the existing $1,000 child tax credit. This means that even families that don't pay income taxes, but do pay payroll taxes (i.e. families who work), would benefit from the tax credit.

The plan also reforms corporate income taxes. The details are a bit too complex to get into here, but as Reihan Salam explains, this part is also very clever and well thought out, and would address the problem of crony capitalism.

Now, why is any of this a big deal?

It's a big deal, first of all, from a political perspective. Here are two Tea Party senators, one of whom is thought to be a strong candidate for the GOP's presidential nomination, saying that the Republican Party should stop focusing on cutting top income tax rates and instead focus on helping middle-class families. The plan cuts tax rates a little bit, but most of its "bang" is for middle-class families.

It's very important for the GOP to realize that the way to national electoral success is to be seen as on the side of the middle class. And that starts with bread-and-butter issues like taxes.

But Rubio and Lee's tax plan is also a big deal because expanding the child tax credit tackles a whole set of interlocking issues that are plaguing the country and, unlike heavy-handed progressive solutions, does so in a smart way.

(Excerpt) Read more at theweek.com ...


TOPICS: Constitution/Conservatism; Culture/Society; Government; News/Current Events
KEYWORDS: marcorubio; mikelee; tax; taxplan
Navigation: use the links below to view more comments.
first 1-2021-38 next last

1 posted on 10/03/2014 3:26:55 PM PDT by SeekAndFind
[ Post Reply | Private Reply | View Replies]

To: SeekAndFind

The plan is junk. Rates are too high.


2 posted on 10/03/2014 3:29:52 PM PDT by impimp
[ Post Reply | Private Reply | To 1 | View Replies]

To: SeekAndFind

When does Rubio’s amnesty plan kick in?


3 posted on 10/03/2014 3:30:14 PM PDT by Jim Robinson (Resistance to tyrants is obedience to God!!)
[ Post Reply | Private Reply | To 1 | View Replies]

To: SeekAndFind
If this plan has Rubio’s name on it, then the plan is no good.
4 posted on 10/03/2014 3:33:26 PM PDT by fatnotlazy
[ Post Reply | Private Reply | To 1 | View Replies]

To: fatnotlazy

Are you saying that Mike Lee has been duped and he can’t think for himself?


5 posted on 10/03/2014 3:34:08 PM PDT by SeekAndFind (If at first you don't succeed, put it out for beta test.)
[ Post Reply | Private Reply | To 4 | View Replies]

To: impimp
The plan is junk. Rates are too high.

If 10% is good enough for God, it is good enough for the government.

6 posted on 10/03/2014 3:38:53 PM PDT by FatherofFive (Islam is evil and must be eradicated)
[ Post Reply | Private Reply | To 2 | View Replies]

To: SeekAndFind

10% true flat income tax. Nobody gets any credits, deductions, loopholes, exemptions - NOTHING. No EITC. Not a dime back from Uncle Sam. Everyone pays the same 10% rate, from a homeless bum to Bill Gates.


7 posted on 10/03/2014 3:45:30 PM PDT by Extremely Extreme Extremist
[ Post Reply | Private Reply | To 1 | View Replies]

To: SeekAndFind
The plan is crap: it has multiple rates.
The plan is crap: all the rates are too high.
The plan is crap: it has credits.
The plan is crap: it doesn't forbid write-offs.
The plan is crap: it doesn't forbid exceptions.

In short: the plan is crap.
8 posted on 10/03/2014 3:46:57 PM PDT by OneWingedShark (Q: Why am I here? A: To do Justly, to love mercy, and to walk humbly with my God.)
[ Post Reply | Private Reply | To 1 | View Replies]

To: Extremely Extreme Extremist
10% true flat income tax. Nobody gets any credits, deductions, loopholes, exemptions - NOTHING. No EITC. Not a dime back from Uncle Sam. Everyone pays the same 10% rate, from a homeless bum to Bill Gates.

I agree; this plan would also virtually eliminate the IRS's ability to do political targeting.

9 posted on 10/03/2014 3:48:11 PM PDT by OneWingedShark (Q: Why am I here? A: To do Justly, to love mercy, and to walk humbly with my God.)
[ Post Reply | Private Reply | To 7 | View Replies]

To: SeekAndFind

Most beneficiaries will be Mexican. Giving them $2,500 per child is obscene. Those who do pay income taxes make more money with the child credit rip off than they make working.


10 posted on 10/03/2014 3:51:16 PM PDT by stilloftyhenight (...staying home isn't an option.)
[ Post Reply | Private Reply | To 1 | View Replies]

To: SeekAndFind

Yet another way to let the bottom 50% pay no taxes. It also turns Social Security into yet another Welfare program.


11 posted on 10/03/2014 3:52:12 PM PDT by Opinionated Blowhard ("When the people find they can vote themselves money, that will herald the end of the republic.")
[ Post Reply | Private Reply | To 1 | View Replies]

To: SeekAndFind

Rubio quit being a “Tea-Party Senator” when he supported Amnesty.


12 posted on 10/03/2014 3:53:08 PM PDT by SoConPubbie (Mitt and Obama: They're the same poison, just a different potency)
[ Post Reply | Private Reply | To 1 | View Replies]

To: SoConPubbie

I know, but that doesn’t mean all of his ideas are now useless.

They have to be taken and analyzed on a case by case basis.


13 posted on 10/03/2014 3:54:28 PM PDT by SeekAndFind (If at first you don't succeed, put it out for beta test.)
[ Post Reply | Private Reply | To 12 | View Replies]

To: OneWingedShark

RE: In short: the plan is crap.

OK, let’s say you are tasked with designing a tax plan, what would it be?


14 posted on 10/03/2014 3:55:20 PM PDT by SeekAndFind (If at first you don't succeed, put it out for beta test.)
[ Post Reply | Private Reply | To 8 | View Replies]

To: OneWingedShark

There wouldn’t even be a need for the IRS. A 3-month seasonal staff of existing employees from Treasury would simply collect the taxes and be done by the end of March.


15 posted on 10/03/2014 3:56:02 PM PDT by Extremely Extreme Extremist
[ Post Reply | Private Reply | To 9 | View Replies]

To: Extremely Extreme Extremist

RE: 10% true flat income tax. Nobody gets any credits, deductions, loopholes, exemptions - NOTHING. No EITC. Not a dime back from Uncle Sam. Everyone pays the same 10% rate, from a homeless bum to Bill Gates.

So a $100 earner pays $10 in taxes

.....

a $10,000 earner pays $1,000 in taxes,
A $20,000 pays $2,000 in taxes
A $30,000 pays $3,000 in taxes

etc. etc.

A $100,000 pays $10,000 in taxes

..............

A $1,000,000 earner pays $100,000 in taxes

And a $1,000,000,000 earner pays $100,000,000 in taxes?


16 posted on 10/03/2014 3:58:49 PM PDT by SeekAndFind (If at first you don't succeed, put it out for beta test.)
[ Post Reply | Private Reply | To 7 | View Replies]

To: OneWingedShark; Extremely Extreme Extremist

RE: I agree; this plan would also virtually eliminate the IRS’s ability to do political targeting.

Ahhh, but still, you have to answer this one question to the IRS =— WHAT IS INCOME?

This plan still retains the IRS’ power to snoop on you.


17 posted on 10/03/2014 4:00:45 PM PDT by SeekAndFind (If at first you don't succeed, put it out for beta test.)
[ Post Reply | Private Reply | To 9 | View Replies]

To: SeekAndFind
RE: In short: the plan is crap.
OK, let’s say you are tasked with designing a tax plan, what would it be?

A Constitutional Amendment:

Tax Reform Amendment
Section I
No tax, federal or state, shall ever be withheld from the wages of a worker of any citizen of either.

Section II
No property shall be seized for failure to pay taxes until after conviction in a jury trial; the right of the jury to nullify (and thereby forgive) this debt shall never be questioned or denied.

Section III
The second amendment is hereby recognized as restricting the power of taxation, both federal and state, therefore no tax (or fine) shall be laid upon munitions or the sale thereof.

Section IV
The seventh amendment is also hereby recognized, and nothing in this amendment shall restrict the right of a citizen to seek civil redress.

Section V
No income tax levied by the federal government, the several States, or any subdivision of either shall ever exceed 10%.

Section VI
No income tax levied by the federal government, the several States, or any subdivision of either shall ever apply varying rates to those in its jurisdiction.

Section VII
No retroactive or ex post facto tax (or fee) shall ever be valid.

Section VIII
The congress may not delegate the creation of any tax or fine in any way.

Section IX
No federal employee, representative, senator, judge, justice or agent shall ever be exempt from any tax, fine, or fee by virtue of their position.

Section X
Any federal employee, representative, senator, judge, justice or agent violating this amendment, attempting to violate it, or otherwise causing the application of an ex post facto, retrospective, or retroactive law, tax, or fine shall, upon conviction, be evicted from office and all retirement benefits forfeit.

Now, we could get some good stuff done without a constitutional amendment, but the problem is that such would be alterable by normal legislative methods. The Constitutional amendment, on the other hand, is something which requires a fair amount of support. Some benefits of this particular plan: there are caps on the rates governments can impose, it forbids property taking w/o jury trial, it cuts off the powers of the GCA/NFA [gun control], it forbids progressive taxation, it forces congress to abide by the same taxes/fines as the rest of us, and it imposes certain punishment for agents of the state who violate it.

18 posted on 10/03/2014 4:08:01 PM PDT by OneWingedShark (Q: Why am I here? A: To do Justly, to love mercy, and to walk humbly with my God.)
[ Post Reply | Private Reply | To 14 | View Replies]

To: impimp

Not only junk, it denies the childless equal protection under the law. My wife and I are childless; where is my $2500.?? Gimmedat!


19 posted on 10/03/2014 4:26:04 PM PDT by Lion Den Dan
[ Post Reply | Private Reply | To 2 | View Replies]

To: SeekAndFind
How much do you think people are paying now?
20 posted on 10/03/2014 4:31:20 PM PDT by Extremely Extreme Extremist
[ Post Reply | Private Reply | To 16 | View Replies]


Navigation: use the links below to view more comments.
first 1-2021-38 next last

Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.

Free Republic
Browse · Search
News/Activism
Topics · Post Article

FreeRepublic, LLC, PO BOX 9771, FRESNO, CA 93794
FreeRepublic.com is powered by software copyright 2000-2008 John Robinson