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.
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