The Lee-Rubio tax blueprint

The Washington Times ^ | March 17, 2015 | Allen West

[Tolerance Sucks Rocks]

Republican Sens. Mike Lee of Utah and Marco Rubio of Florida have released a blueprint for federal tax reform called “The Economic Growth and Family Fairness Tax Plan.” First, we should not embrace the language of progressive socialism in believing tax reform should have as a goal to advance “family fairness.” The plan should simply be entitled “The American Growth and Opportunity Plan.” That said, the Lee-Rubio plan is a great improvement over the current system.

For the individual tax structure, the plan introduces a two-tier system to replace the current seven tax brackets. This plan moves America from a progressive tax structure to a bifurcated flat tax. All income earned up to $75,000 for singles and $150,000 for joint filers would be taxed at 15 percent. All income earned over those thresholds would be taxed at 35 percent. While a two-tiered system moves us closer to a flat tax, the 35 percent bracket could raise the tax burden for households earning less than $200,000 a year, compared to the current system. A top rate of 22 percent to 25 percent would be less burdensome.

The Lee-Rubio plan also proposes to increase the child tax credit to $2,500, up from $1,000. This is designed to eliminate the supposed bias against parents, who not only pay payroll taxes, but also pay to raise children who will eventually pay for future retirees through their own payroll taxes. However, if the child tax credit is to be expanded, the National Center for Policy Analysis (NCPA) recommends making it contingent on parents using it to provide health insurance for their children; or, if the children are otherwise covered, putting aside money in a Health Savings Account for the family’s future medical needs.

[RayChuang88]

I think in the end, the flat tax I proposed is only a partial solution. The ultimate solution is still this:

FairTax

It would save something like over 90% of the yearly compliance and economic opportunity costs of the income tax, which has reached a frightening US$1 TRILLION in 2014. Can you imagine over US$900 billion per year freed up for more productive use like growing a business?

[wintertime]

Exactly!

How much does it cost to collect $1 of tax ( Including the the government, businesses, and individual)?

That cost is an enormous drag on the economy. It is not only money it costs to collect the tax but the **time** it takes for the citizen to comply. That time would also be a boost to the economy.

[Impy]

Rubs is only a traitor on shamnesty.