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America’s tax code is bloated and in need of serious reform. Sens. Mike Lee (R-UT) and Marco Rubio (R-FL) may have one solution.
Their new tax proposal would simplify the tax code and help grow the economy, say Heritage Foundation economists David Burton and Curtis Dubay in a new report.
The Lee-Rubio plan would streamline the way businesses are taxed, cutting down the unwieldy seven-bracket system and replacing the process of taxing depreciation with a more straightforward method based on expenses. These and other provisions would modernize the tax code and grow the economy. But there is room for improvement on individual income taxes:
The business side of the Lee–Rubio plan is the best business income tax reform plan that has been proposed in Congress in recent memory. The individual side is a modest step in the right direction, but leaves much room for improvement. The business tax reforms are so positive that, taken as a whole, the plan would dramatically improve the economy and the incomes of American families.
Burton and Dubay also note that their analysis could change when Lee and Rubio release their full plan.
What do you think about the Lee-Rubio tax plan? Tell us in the comments below.
Tom Kohls - March 12, 2015
Spending needs to be addressed first. Evade the real issue by addressing others. Yes we need to get the economy going so we can reduce the entilement culuture. What does it take 18,25,30 trillion? What will destroy our country first? Tax laws? Give me a break.