Rubio's Tax Plan: I Like It!

Finally someone is stepping up to the plate with some tax reform.

The current seven individual tax rates would be consolidated into two brackets of 15 percent and 35 percent – a slight reduction from the current top rate of 39.6 percent. Meanwhile, the top corporate tax rate would fall from 35 percent to just 25 percent.  

That sounds excellent so far. He is also adding this sweetening to the pot.

There was far less enthusiasm for the centerpiece of the Rubio-Lee plan – a $2500-per-child tax credit to help ease financial burdens for middle-class Americans. This is the group Rubio and other presidential wannabes hope to woo.

I think that is a good idea but maybe split the different with a $1500 child tax credit and a $1000 bump to the earned income tax credit for people making under some threshold like $50K a year. That way parents get a boost with some more money while every other American also gets a cool grand and a big boost to their take home pay from a move to a 15% tax bracket. This would unleash quite a bit of spending in America I assure you. I would not care about this part.

When scored with traditional methods used by the non-partisan Congressional Budget Office and the Joint Committee on Taxation, the Rubio-Lee plan would result in revenue losses of $414 billion a year after a 10-year transition period, William McBride, chief economist for the Tax Foundation, wrote this week.

This is if you did not do any dynamic scoring and just believed that these tax cuts would not cause any growth to the economy which is asinine. I think car buying would shoot up as everyone will get a nice down payment at tax time and can afford the terms because their take-home pay will rise. I think it would be a great way of rewarding a middle class that has been beaten in the face by the Obama-economy this last 6 years.