Sen. Mike Lee (R-UT) and Sen. Marco Rubio (R-FL) at The Heritage Foundation

Sens. Mike Lee (R-UT) and Marco Rubio (R-FL) at Heritage Wednesday.

Speaking today at The Heritage Foundation, Sens. Mike Lee (R-UT) and Marco Rubio (R-FL) made the case for their new tax plan.

Our current tax code is so overcomplicated and burdensome, they explained, that it ends up punishing entrepreneurs and savers. Over 90 percent of Americans would see a tax decrease under their proposal.

The plan “levels the playing field” for those with small businesses who are currently paying higher taxes than their larger competitors. “The more you innovate, the more you invest into the economy,” Rubio said, “the more you should get back.”

Not only that, their proposal is a “pro-growth and pro-family tax plan,” Lee said, since it institutes a $2,500 child tax credit.

Heritage’s Curtis Dubay and David Burton reviewed the plan last month:

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.

The Lee–Rubio plan would also increase interest in tax reform and show the way on business tax reform. It will help to make tax reform a reality when there is a President in office who wants to lead the effort.

What do you think of the Lee-Rubio tax plan? 

Comments (144)

Suzanne Matick - April 17, 2015

Tax reform means expunging the IRS. (PERIOD!). Mike Lee ought to be ashamed of himself; he went to D.C. to restore the Constitution…how quickly they fall in D.C.. Marco Rubio is no surprise, as he’s bought into (or by) the globalists. Stand for the Constitution, not this pretense and more of the same!

Bobbie Sena - April 17, 2015

i do not like their plan. i also do not favor a national sales tax. A flat taX OF NOT MORE THAN AND HOPEFULLY LESS THAN 20% WOULD BE IDEAL.

Jerry Metcalf - April 17, 2015

Doesn’t do enough. Should stop taxing social security income.

Wayne Purselley - April 17, 2015

If it can get through the legislative process I will rejoice will all good citizens.

Donald Riehle - April 17, 2015

While I know little of it, I like the sound of it. I’m retired but low income and still pay significant taxes (inc:$36k) while most folks I know pay nothing. Sm bus likely needs a great deal of help there as the anti-capitalist view on the left seems intent on destroying even small business, unless they offer generously to the Ds.
Tax reform is badly needed.

Robert Mercer - April 17, 2015

I like the direction but wish that it included a reform of the death tax as well. The death tax is a serious draw on our economy that simply shifts profits from productive family members to unproductive Life Insurance corporations.

charles fisenne - April 17, 2015

Tax structure is not that simple, Funny money and debt complicates the game of life furthur.

Maureen Wolfe - April 17, 2015

I have no problem instituting another tax credit for eligible income levels of Legal Residents and U.S. citizens. Currently the existing loophole in the tax code allows illegal persons and those with Itn,s to receive the “additional” tax credit and I’m my opinion all tax credits should only be for legal immigrants and citizens.

Kathy Parker - April 17, 2015

I read this explanation, and listened to Mike Lee’s talk with Glenn Beck about this bill. I am not in favor of this bill because it actually raises taxes on many. I am in favor of a flat tax, with a postcard form. That would be fair for all, no death tax, no double taxation, and not 76,000 pages of tax code, regulated by a million IRS people.

Dianne - April 17, 2015

The only tax reform that makes sense these days would be to go to a flat tax or possibly fair tax. Get rid of the IRS and it’s power. Reduce it’s size, don’t grow it. And get to the bottom of it’s recent abuses of conservatives.

Conrad - April 17, 2015

Snake oil. Pretends to cut taxes while he increases them on middle class. Not to good for people who claim to be tea party supporters

jim McDaniel - April 17, 2015

I earn $75,000 per year and am living pay check to pay check. I already pay $24,000 per year in taxes before I buy antrhing.. I understand this newist RINO tax bill will raise my taxes even more. I can’t stand anymore hits to my pay check.
Why would these two RINO’s not propose a bill for a fair tax instead? Then everyone would pay taxes are including illegals, pimps and prostitutes, drug dealers and welfare cases. We could truly put an end to the IRS.

Connie Perrin - April 17, 2015

I would prefer tax reform the eliminates the IRS and greatly simplifies filing tax returns. It should also give everyone skin in the game, so those who don’t pay taxes now would not be so quick to agree to increased taxes on the rest of us. For those of us who did not have large child deduction while raising our children, it looks like we’ve missed the boat on these. If you want to eliminate double taxation, how about taking the taxes off social security benefits. That’s a tax on a tax. I like the flat tax or fair tax.

Jack Cinque - April 17, 2015

It may be a step in the right direction but we do not need more “reform” which time has proven leads to more preference items and complications. Heritage should endorse enactment of HR-27 which will provide impetus for what is needed — a completely new way to finance the Federal government — that is HR-25

Joanna Benedict - April 17, 2015

For those on the cusp of retirement this plan could actually raise taxes for us. If the higher rate will kick in at $150,000 for a joint return it will make it difficult to take distributions from savings to pay off a home or car or other medical bills without triggering a tax increase. Currently you pay up to 28% at $150,000. With their plan we would pay 35%???? What kind of deal is that? Please feel free to explain further if I am missing something.

Don Bickers - April 17, 2015

Rubio’s plan is a good place to start the conversation. After hearing his speech announcing his candidacy I am more and more convinced he should be the GOP nominee. I served under Bush 1 and supported Bush 2, but I think it is now time for a fresh face with Rubio’s background, etc.

Rick - April 17, 2015

Is it flat? Does everyone pay? If you make a dollar you owe uncle Sam a dime. If God can get by on 10% so can Sam!

Vernon Kenley - April 17, 2015

It’s a good first step but much more is needed to restructure the tax code.

Linda Hanel - April 17, 2015

Their plan further confuses Tax code still in place. Throw it out and replace with simple plan. No different than Democrats. That is the reason I am no longer a member of Heritage.

John Controne - April 17, 2015

It’s not bold enough. It’s just tweaking the current tax code which should be thrown in the junk pile and burned.
We need a new and simple tax code. One not loaded down with perks and deductions for either individuals or corporations. One so simple that it rids us of 90% of the IRS.
I do not have much hope for that because the tax code is what gives Congress so much power. It is what also has led to so much corruption in our government.
Our Founders would be so disappointed in us for what we have become as a nation.

Charlie Wallace - April 17, 2015

I don’t like the Lee-Rubio tax plan. I am currently paying a marginal tax rate of 33% on ~30% of my taxable income. With Lee-Rubio I’ll be paying substantially more income tax with a marginal rate of 35% on over half of my taxable income. As a 74-year old, self-employed consulting engineer, I have been paying well over my “fair share” of income taxes for 55 years. Lee-Rubio should lower the top tax rate and increase the income level at which it applies.

David Simeoli - April 17, 2015

It stinks. They are only playing another variation on a theme. Its time to dismantle what is playing and start NEW with TRUE CONSERVATIVE VALUES and PRINCIPALS…Stop giving back scraps to feed our mouth,while we continue to hemorrhage from our hands and feet! If 10% is good enough for God, it should be good enough for our Govt. Not to mention, 10% from EVERYONE is a lot more then 17-19% (yearly avg. collected) from those who do pay.

W C Bolen - April 17, 2015

Just more of the same. The only Fair Tax is a one or two percent tax on all gross receipts without exception. Wealthy folks spend more so would pay more tax, etc. Simple Economics!

Andy Shipp - April 17, 2015

The behemoth US tax code was created by Washington DC bureaucrats and I’m sorry, but making a primary focus of drastically changing it right now with this administration is a losing issue. The problem is we don’t trust ANYONE in Washington when it comes to taxes and the tax code. People frankly don’t know or care how complicated it is because their tax guy takes care of it. All they care about is how much they have to pay and we don’t trust that if you change it we’ll (the average working guy or small businessman will pay less. You see we don’t have a taxing problem in this country, we have a SPENDING problem and THAT is where you need to focus your efforts. We don’t want Washington to have ANY more money. We want them to have less money and become smaller. If you cut wasteful entitlement spending and fraud you’ll have all the money you need. If you could cut the corporate tax rate to zero you would solve the whole revenue problem but you can’t , at least until you get the White House back so my advice to you is BACK OFF JACK on the tax code and focus on the spending cuts. I like you guys and this is just a little free advice.

n brown - April 17, 2015

tax plan rubio/lee nibbles enticing/insufficient definite info. Coming later? Am offended at 2500 for each child. How much package food goes into house? How many electronic gadgets? Eat out? Well, they don’t deserve special breaks until they have earned them.

James W. Brabon - April 17, 2015

I am not for it because it taxes income, keeps the IRS in place, and will be tinkered with down the road. The FAIR TAX is the only way to go, as one is taxed on consumption, not income. Also the FAIR TAX eliminates the IRS! All U.S. citizen households get a montly prebate check from the government based upon the number of U.S. citizens in their household to cover goods they would have to purchase to bring them up to the poverty level. This ensures no one is below the poverty line.

Douglas Mohrmann - April 17, 2015

Not even close to being adequate. I don’t care about business until i get the irs out of my life forever. I am ready to leave the country simply because of the tax rate, tax collection practices, collusion of the irs with the banking system, complications of the tax code and the micro management of the economy with these guys getting deductions and those guys getting deductions and me getting nothing or not being able to hire an accountant. the govt needs to be reucedd by 65% ,services need to be outsourced and the so on and so on this is simply another political tinkering. We need a shocking overhaul that is embedded in a constitutional amendment so that America can never get to this point of freedom grabbing again. We will have the house and the senate and the executive branch from 2016 to 2018 and that is the window of opportunity, think big not this dittley squat!
can never

Steve Hillier - April 17, 2015

Where are the details or is this like the Paul Ryan plan from past.

charlie - April 17, 2015

The only plan I’ve seen that makes sence is Martin Armstrong’s solution.

David McCormick - April 17, 2015

To avoid debt driven debacles like the 2007-8 collapse, I suggest that the tax code changes reduce the attractiveness of debt finance and encourage saving. I think that encouraging savers by eliminating taxation of interest income and not permitting deductions for interest expense is an admirable course of action for business taxation. I would extend that to the current home mortgage interest deduction (MID) by eliminating that deduction but not taixing the interest received by lenders. As to business depreciation, I like the Rubio-Lee proposal of expensing capital expenditures, but that may not work for many industries. I think President REAGAN had a better approach in the 1981 Kemp-Roth tax cut. Industries that are capital intense (electric, gas utilities, heavy industries (auto-steel -oil refinery) make capital investments that may be massive and not recoverable from customers in one year. Reducing lengthy depreciation recovery from 39 years (in your article) to the 15 years (maximum) used under Kemp-Roth might be more practical. One of the problems may be that Sen. Rubio has so little business experience or understanding. Further, Sen. Mike Lee’s only business experience seems to be as a lawyer for a radio-active wast firm in matters primarily related to government work — not “real” commerce and trade. An across the board TAX CUTS for all “individual” taxpayers advocated by President Reagan in that 1981 tax cut, seems preferable to the “targeted tax cuts” with various child tax credits etc. advocated by Rubio-Lee. Bush-43 tried those “targeted tax cuts” and this looks like more of the same. It did not end well before and likely would have the same disastrous problem again. Why is there a reluctance to opt for across the board cuts for individuals? It just looks like the Rubio-Lee proposal has been made by career “government guys” rather than folks with some private sector understanding. Further, I’d favor major cuts in domestic and military spending. I think there is a lot of WASTE in government spending and no GOP interest in cleaning that up. Maybe I’m wrong.

John Copper - April 17, 2015

Their “new” tax plan is still the same ‘ol same ‘ol. The tax on income which is the mother of the IRS is (and should still be) unconstitutional. The tax on income is NOT about revenue generation for the government, it is about (1) behavior modification, and (2) income redistribution. Their plan leaves in place the structure for future politicians and unconstitutional agencies to “modify” the tax and to bring us back (soon) to the place we are in now. We need to ABOLISH completely the current tax code and move to a sales tax (Federal and State) on consumption, NOT income. This needs to be protected against the Value Added Tax proposed by some. ABOLISH the IRS and the tax code in the same piece of legislation. Reduce the size and scope of the Federal Government and eviscerate most, if not all, regulatory agencies.

Gary Radford - April 17, 2015

like Ted Cruz plan more.

Loretta Davi - April 17, 2015

I agree with the analysis for the business side of taxation. I do not agree with taxing a person who works = middle class. Why does a worker always have to carry the burden. I actually do not believe in taxing a person who works, it is sinful. Remember we did not ask to work for the government when we applied for a job. When i work an earn a wage, please give me what i earned. Please.

David Archer - April 17, 2015

I’m sorry but I am in favor of a National sales tax, not an income tax or VAT or some combination of the two. The Federal Government does not need to be in the business of steering our spending behavior or redistributing our tax dollars. It is the fairest tax on all income levels and requires every American to have some
skin in the game.

Bob Wilson - April 17, 2015

I don’t like any tax that depends on a definition of income that is understandable in theory but hard to apply in practical terms. That is what gives the politicians & the bureaucrats such power over us.

Rescind the 16th amendment & establish a consumption based tax on the maximum goods & services, coordinated with state sales taxes for administrative & collection purposes. That would be true tax reform.

Earl Long - April 17, 2015

The Rubio/Lee plan is terrible. Nothing more than tinkering by Politicians picking giving benefits to special interest groups in order to buy votes.
The Heritage Foundation should be ashamed to even public this.
The only solution and major tax reform is the FairTax HR 25, that completely stops taxing income (which is stealing) and abolishes the IRS. I am very disappointed in the Heritage Foundation.

John H. Patten - April 17, 2015

As much as I respect Senators Lee and Rubio, why are they not thinking “outside of the box?” The FairTax (H 25) has over 60 sponsors and has been in Congress for over 15 years! It would replace the present income based system with a national sales tax administered by each State, eliminate the IRS, and much more.
Please stop trying to fix the unfixable!!! That was tried in 1986. It has only gotten worse. Go to the following link and find the real answer to ALL our tax problems:

Eugene Labounty - April 17, 2015

I believe the consumption tax is the way to go,It would cover anyone who purchases anything and would catch the drug dealers and others who currently do not report their income and nothing should be exempt from the tax

Wisesooth - April 17, 2015

There is no such thing as a fair tax because the definition of “fair” like “beauty”, lies within the mind of the beholder. The greatest impediment toward tax reform is human nature.

Bob Wilson - April 17, 2015

I don’t like any tax that depends on a definition of income that is understandable in theory but hard to apply in practical terms. That is what gives the politicians & the bureaucrats such power over us.

Rescind the 16th amendment & establish a consumption based tax on the maximum goods & services, coordinated with state sales taxes for administrative & collection purposes. That would be true tax reform. Using an extremely broad range of goods & services would allow you set a rate equivalent to an appropriate cost of government.

Dan Baerthel - April 17, 2015

Disagree strongly with expanding the child tax credit. Exponential population growth underpins all financial, social, medical, entitlement, and security issues here in America and globally. The inherent dangers are not recognized but critical to all the aspects listed above.

Taffee - April 17, 2015

Listed to Glenn Beck with Mike Lee the other day. It appears that we don’t need reform of a dysfunctional tax code system with adding more rules and exceptions etc… but could use a refreshing new flat rate tax system would put a smile on every hard working citizen in the US.

Georgia H. Price - April 17, 2015

We need to eliminate the IRS. Anything less is unacceptable. there has to be a better way for all.

Thomas Roane - April 17, 2015

I would prefer a flat tax, where we can simplify the tax codes, and reduce the crooked IRS staff and their biased influence to a bare minimum. I also would like to see; 1) no death tax, 2) no double taxation, 3) and be pro-family and small business. Let the people keep more of their earned income, instead of it going to fund silliness like climate change. After all God determines climate change, not us.

Ruth K. - April 17, 2015

The individual portion is not good enouigh. A flat tax systtem would be much more fair. I think the business portion is a step in the right direction. I don’t know much about the proposed territorial system, but I don’t like the idea of businesses from any country making huge profits using slave-like labor.

James Lostutter - April 17, 2015

I Wish that they would think about the Fair Tax. There was a bill in the house HR125 that went no where. If Congress was truly interested in helping the working class (small business owners) in this country, they would have passed this bill.

ted lyons - April 17, 2015

My first impression was “does it keep the IRS in tact. Shame if it does.
Flat Tax, with transition to Fair TAX
makes for a real change.
I’m dissipointed in Mike and Rubio

Charles Jones - April 17, 2015

The income level to get to the top 35% tax rate is way too low…many will see their taxes rise.

Robert Winters - April 17, 2015

So, Rubio claims “The plan “levels the playing field” for those with small businesses who are currently paying higher taxes than their larger competitors. “The more you innovate, the more you invest into the economy,” Rubio said, “the more you should get back.”
Not only that, their proposal is a “pro-growth and pro-family tax plan,” Lee said, since it institutes a $2,500 child tax credit.
This is really very disappointing as Rubio professed an affinity for the FairTax when he was campaigning for senate, but then backed off and refused to cosponsor it after he got elected. Rubio’s “new” plan is just tinkering with the INCOME tax, which requires an IRS to collect it and which is used to manipulate the behavior of taxpayers, and which picks winners (people who have babies) and losers (everybody else) who have to pay for the babies. The FairTax does not tax productivity. It does not tax work. The workers get to keep ALL of their paychecks as there is no income tax withholding, no FICA tax, no Medicare tax, and best of all, no IRS. Under the FairTax, April 15 becomes just another Spring day. The amount of tax one pays is determined by how much one spends on new goods and services, and there is no tax on purchases up to the poverty level based on family size. The FairTax eliminates the need for “tax inversions” as there is no tax on corporations, or other businesses. Remember, corporations don’t pay taxes, only people pay taxes. O yes, and under the income tax, dead people also pay taxes. The FairTax eliminates the death tax. And, as a bonus, it eliminates capital gains taxes and all federal excise taxes. We do not need reform of the income tax, we need repeal and replacement with the FairTax where everyone pays, even illegals and criminals, and fraudsters. When they buy, even they will pay. The FairTax (HR25/S155) is the ONLY real solution.

Jill - April 17, 2015

I am 72 and tried to live in a financially responsible way all my adult life—only debt was a mortgage, no credit card debt ever. So, I am now at a point without a mortgage and have substantial investments, therefore, I just got hit with the new Obamacare tax as well as the AMT tax. These two taxes do not seem to be addressed. I would prefer some kind sales tax unless there was a flat tax that could never be increased. The first time the flat tax was proposed it was 10%.

Paul Hummel - April 17, 2015

Once again Washington is taking a piece-meal approach and not addressing the whole problem – just a thought.

Ronald Sarson - April 17, 2015

Just another patch to an astonishingly complex tax system. It would most likely add even more pages. Flat tax, fair tax, national sales tax, are all better solutions. Pick one.

Paul Edens - April 17, 2015

Abolish the IRS. Flat sales tax.

Michael Hines - April 17, 2015

We need the Fair Tax – remove the IRS from the equation. Tax spending – not savings. Collect tax at the point of sale (we already to that for sales tax – most states already have a system in place).
Any scheme that merely adjusts the current tax code is inadequate and should be rejected. Tax credits mean the system stays in place and we add a few more lines or forms to the already over burdensome IRS 1040 or other organizations tax reporting and paying.
Reducing or adding pages to the current tax code is inadequate.
All people need to be involved in paying taxes – not allowing 50% to not pay any taxes at all, and in some cases giving them money back (not collecting a penny). All benefit from government programs – all should support them.
We want and need the Fair Tax.

Kevin S - April 17, 2015

From what I have heard and read, I don’t think this proposal treats all citizens fairly in that it raises taxes on 10% of the taxpayers. The fair tax seem more equitable to all citizens in that all will share the cost of government

Franklyn Pogge - April 17, 2015

Except for corporate tax levels I think it is DOA.

Philip White - April 17, 2015

Get rid of the IRS, it has already been manipulated by the Obama Administration… Keep the Taxes simple, like a Flat Tax, or something similiar !!!

JIMMIE WALKER - April 17, 2015

I like the business proposals.
I think the individual rates are still too high and I think that Social Security Payments should not be taxed at all.

Angelo Damico - April 17, 2015

I like the Business tax plan but not the personal tax plan.
I do not believe that it address the enormous potential to the economy of repatriating business earnings back into the country that were earned outside the US.
As an investor in real estate I hate the loss of the mortgage interest deduction.
This will cause a radical increas in taxes to me and all real estate investors/ landlords.
I despise the current Child Tx credit and would no support increasing that credit it fosters unwanted children in already economically distress households who grow up in near poverty and perpetuate a vicious cycle of continued dependence on the government for support. NIX the child tax credit.
This proposal is a missed opportunity to lower rates and foster more growth.
A rate system like 7.5% 15% 22.5% 30% 37.5% is far superior to the 15 and 35% Lee-Rubio proposal.
Oftentimes simplicity in it’s desire for efficiency misses the higher value of maximizing effectiveness!

George White - April 17, 2015

I don’t like that they are trying to buy votes. We do not need to add another tax credit we need to eliminate them and have all wage earners pay their fair share. Work on getting rid of redundant agencies and eliminating government workers. The fair tax sounds like a way to make support of the government come out of every ones pocket. I want a republican candidate who is willing to work on better government not more government.

Richard - April 17, 2015

Americans For Fair Taxes has expended ten of millions to research the FairTax. The Tax Foundation supports the FairTax.

Businesses collect money, usually from consumers, to pay their income tax. Thus almost all tax on businesses is paid by consumers.

The income tax started out pretty simple and has been simplified a number of times. It just keeps on growing. END the income tax and along with it, payroll taxes.

Less than half of Americans pay income tax yet all Americans are consumers. Let all Americans have some skin it the game and maybe more will fight high government spending.

Alexander Hamilton, a founding father and first Secretary of the Treasury, advocated a consumer tax.. It was communist Karl Marx that advocated an income tax.

Sue Briscoe - April 17, 2015

I approve of your tax plan.

Marlin Genz - April 17, 2015

Just tell me what is different of what Rebio said and what the Crates Tax plan. It is the same thing using different wording. Rebio’s and the Crats plan will get U.S. the same thing . ( Bull )
Now if he were to say is a 100 percent Flat tax then we would get some where.

Danny Riley - April 17, 2015

Knowing so little of it makes it hard, but I think something should be done for the retired folks. It’s always the middle class families. More and more folks are opting not to have kids.Lets get the flat tax going where EVERYONE can contribute.

Patsy Vaughn - April 17, 2015

I think the plan is a good start. Unless it is explained, most people will not understand it.

David Twesme - April 17, 2015

not a good plan. just nibbles around the corners. Next congress puts us right back where we are…
We need the fair tax discussion, away from the lobbyists. I doubt the “it won’t work” crowd seriously read or considered it.
Take the lead, Heritage. we don’t want just another tax scheme. we want an entirely new strategy. No more IRS, no more corporate/business taxes, no more paid in cash illegals paying nothing, just sending money back to Mexico, etc ad infinitum. Lets just do it

P J - April 17, 2015

I do not like the plan. I want a plan that does not involve filing tax returns for individuals. With what has happened this year with so many people that went to file their returns and learned that someone else had already filed a return in their name and they could not file because of this. There is too much fraud and everyone’s social security number has been made public this needs to be stopped. If there is no benefit for people to use other people’s information to get money this would save a lot of money to keep the government from having to investigate all the mess being created. What is wrong with you people, are you so out of touch with what is going on!!!!!! Identity theft is getting out of control. It is time to stop. I do not care for the national sales tax but I think it has gotten to the point where this must happen. Businesses already collect sales tax so there would be no problem with them collecting a national sales tax. The IRS would have a more manageable tax system and individuals would not have to deal with identity theft since there would be no filing of income tax. Plus illegals would not be getting money from tax returns!!!! The tax system is broken and needs to be fixed now not 2 or more years down the road. Everyone should pay their fair share and a national sales tax of 10% should be enough because people would also be dealing with state taxes. Reduce government by half. Tax would be collected by businesses that report taxes already. Less fraud, identity theft, and the IRS would only have to audit businesses to make sure they were reporting all the taxes collected. I think food, medical expenses, medicine and death taxes should be exempted from the national sales tax. If the Government can’t get by on 10% then the Government just has to cut way back. Cut all programs implemented in the last 25 years. The Department of Education, EPA, etc. Welfare programs should be limited to 2 years with a plan for people to be back working. People on welfare buy groceries and sell them to people to get money to buy what they can’t buy on their welfare (cigarettes, liquor, etc.). They get more by collecting their welfare than getting a job. All income for individuals should not be taxed at all. No more filing tax returns!!! Individuals would pay taxes on what they spend. The more people earn, they more they spend but it should be their choice. The most important things for Americans is freedom which our ancestors fought for and our military defending our freedom. The government has failed at everything else and gives us a dog and pony show. Funding for defense, social security, Medicare, transportation, States will look after education and other things in the State. By transportation I do not mean the President and his family, aunts, uncles, cousins, etc., get unlimited vacations around the world!!!!!!!

Erika f - April 17, 2015

I think the individual adjustments to 15 % and 35% is not well thought out. 150k in middle of nowhere America is vastly different than a place like northern Virginia or New York City. This would significantly raise my taxes to the point it would be detrimental to the well being of my family. My vote is for a flat tax. The Rubio/Lee plan is NOT A GOODS PLAN FOR INDIVIDUALS!!!

Joseph C.Nelson - April 17, 2015

I’d prefer a flat tax, abolishing the death tax, and an end to taxing Social Security income. Abolishing the IRS would help end federal abuse of citizens.

Christopher Thieke - April 17, 2015

I do not favor eliminating taxes on dividends and capital gains. Wall St and CEOs are able to shift their income into these categories. Also I dislike having a 20% jump in marginal rates: one dollar taxed at 15%, the next at 35%. Corporate rate should be lowered as they propose, and increased credit for children is good.

Nelson Whipple - April 17, 2015

Flat Tax, period! No exceptions, deductions, credits, tuition payments, food stamps. 15 pages should do it for instructions.

Ron C. - April 17, 2015

Lets just do a flat tax so we can do away with the complex tax code, and take all this power away from the I.R.S., and get rid of most of it.

Bob Miracle - April 17, 2015

My thoughts are at some point in the near future there will be more people getting benefits than are paying in ! And on a different note ! We are hearing from friends and family that the security breech at Anthem insurance ! People that have filed there tax returns are finding out that there taxes had already been filed and refunds sent out and cashed ! If the IRS cannot do due diligence ! It’s time to implement a fair Tax !

Jane Culley - April 17, 2015

No person should ever receive a refund more than he/she paid that year. Or put a maximum of three dependents. If a family wants a house full of children, that’s on them. We the taxpayers don’t need to pay for their choices.

Louise Montalvo - April 17, 2015

Laws should be written with careful consideration of those they affect. Most laws should be reviewed. Those that have taken away from some and given to others have caused problems for the individual. Those that prefer one group, hurt another. Therefore most laws if reviewed correctly would be eliminated. The Fair Tax seems very fair. There is a collection system in place already. You do not need the IRS for this tax. I dislike the way departments of government have been given the ability to punish people and collect money. Punishment should be done by a court system after proof of guilt.

Danny Gunter - April 17, 2015

As long as there is an Income Tax of any size (rate/rates) there will be tax cheats who don’t pay. The Fair Tax would have everyone who buys any new item pay tax. A tax “prebate” would cover the taxes paid on necessities. The IRS would be eliminated. The Heritage Foundation should publish a complete review of the “Fair Tax Bill.”

Harlan Bentzinger - April 17, 2015

Anthing is beetter than the present.
Like the idea of taxing only the portion of corporate income that is not in dividends. There is no excuse for taxing corporate income twice.
Don’t understand the reason for changing the place where interest income is taxed, but it could become a good bargaining point.
Individual tax returns should not carry a deducion for each child. This means that families with large numbers fo children get a tax break. But, a major reason for changing tax laws is to eliminate tax break. Family size is not a concern of government,. Government should be neutral on family size., Also, don;t forget that population increase is one of the major casuses of world troubles. It is probably Central America’s greatest problem.

Richard McDonald - April 17, 2015

From everything I have read and heard, it sounds like a good plan. I also know Dr. Ben Carson has a fair plan. I would have to read and study both before I could give a definistive answer.

Billy Hart - April 17, 2015

Let’s do it!

Cecil R. Cole - April 17, 2015

i don’t agree with this at all. They are using a sleight of hand to make you think they are helping. We need to have a flat tax straight across the board. There should be no deductions. Everybody needs to have skin in the game. I think if we were to do this , the rate would be 10% or less. If this can’t be done, we can go for a fair tax but make it so that everybody has skin in the game . If this is done there would be no need for the IRS. we the people also need to determine the budget.

hw - April 17, 2015

Prefer the Fair Tax plan, national sales tax; therefore everyone ( rich, poor, drug dealers, etc.) pays into the system and also gets a rebate regardless of income, eliminates the income tax, death tax, corporate income tax, etc, and most importantly, eliminates the IRS.

Carl Smelser - April 17, 2015

The Wall Street Journal has criticized the $2,500 child tax credit as more entitlement. I would like to hear a response to that criticism.

Mary Rose Jones - April 17, 2015

Rubio and Lee should get behind the FairTax plan and work for its passage.

Roy - April 17, 2015

The FAIR Tax is the only fair way to go. No flat tax and no irs!!!!

Andree Nippe - April 17, 2015

I don’t know enough about it at this time; however, what I really would like to see is a FLAT TAX as Forbes had suggested years ago. Thank you.
P.S. Get rid of the IRS and nothing to illegals who come to this country to have their babies!

Bill Hatley - April 17, 2015

I’m surprised !!!! I never liked Rubio’s
Amnesty plan. Guess I’ll pass on this
also. Lee and Rubio, I reserve my
thoughts on this combination.
Bill H

mike hayek - April 17, 2015

I read many of the replies so far and all agree tax reform is needed. Many realize that any reform that doesn’t get rid of the IRS is not reform enough. The only way to get rid of the IRS is to stop taxing income and repeal the 16th amendment. A flat tax on income is still an income tax and that is how this current tax system started over 100 years ago. Talk about helping business and encouraging people to earn more, the Fairtax consumption tax is the best plan around. It’s like a flat tax, everybody pays the same rate. Yet it is progressive too because of the pre-bate every citizen gets. Those who buy more end up paying more. We are essentially paying the Fairtax now as all goods and services we now purchase by businesses incorporate expenses incurred by these businesses paying taxes on their income as well as taxes on many other items. Who ends up paying for the extra cost of goods and services? The consumer, of course. How much more are we paying? Studies have estimated it is about 23%, which is what the consumption tax would be, so prices will remain about the same when the Fairtax is law. But, we will be paying with non-taxed dollars on our income. The more I study this plan, the more of a no-brainer it seems to become.

John Porter - April 17, 2015

Too complicated; still requires keeping records, calculating deductions and filing a tax form to prove how much taxes is owed. Keep it simple; go with the Fair Tax plan.

Phil Taves - April 17, 2015

I heard the plan on FOX NEWS and pray that we can do this but I am not encouraged by anything being accomplished in Washington.

Robert Knapp - April 17, 2015

Tax reform is an absolute necessity. HOWEVER, any tax plan is bound for failure until spending is dealt with. Current policy of adding amendments to important bills (pork) is nothing short of asinine. The black holes that our government dumps our money into simply cannot be justified.

Barbara Baker - April 17, 2015

ENTITLEMENTS is a word that should be deleted from every politicians mind! Social Security and Medicare are prime topics of both the Democrats and Republicans in their ‘ quest to reform everything ‘, which in reality means one thing – more taxes. Abolish the tax code and stop killing small businesses and for the sake of we seniors, leave our ‘ earned rights from hard work for years on end ‘ ALONE! Get rid of helping every other country in the world, favorite donor paybacks, and spending on all these ‘ so-called grants to learn, for example, what makes a fly blink, or other useless nonsense ‘ ! I met you, Senator Lee, but certainly never thought you would help to ‘ craft ‘ such a politically correct document as this one.

Barbara Schmitt - April 17, 2015

I don’t like the huge child tax credit. Per your analysis it should be used to lower rates instead. The Simpson-Bowles tax proposal is better.

Jim Leible - April 17, 2015

I want to thank Marco and Mike for trying to come up with something as with most serious issues in DC, the can just gets kicked down the road these days. I realize they feel the tax code has to be changed in little steps, but time is of the essence. So, personally would rather see a very simplified plan like Ted Cruz advocates and move to reduce the IRS or eliminate it completely and just expand the Treasury Dept. slightly to track individual post card returns and collect the monies. And, 10% seems like a very fair rate to operate the govt. These days the federal govt never has enough to spend and is always dreaming up more projects that requires more money (ie. free junior college for everyone) so FG needs\ to be limited and live within it’s means. I would pick to repatriate US corporate profits, but not for Hwy funding, but for business investment purposes. And to eliminate capital gains taxes and the death tax as these are definitely forms of double taxation. If I read the individual taxation changes correctly, the 15% tax rate for married couples up to $150K ($75K for singles) would definitely help the middle class. In summary, we need to be doing something yesterday as long as the changes are positive and fair for all including business investment in our economy.

Carol L. Cooley - April 17, 2015

not much..

Tim Jones - April 17, 2015

Why this complex? Isn’t that what we want to get away from? Juat a straight flat tax rate, same for everyone! I would not mind an income limit, below which the truely poor are exempt, if it can be done without breaking everyone else. Faze out the IRS quickly. Eliminate the facsist IRS army that Obama hired, return all the ammo they bought up and let’s get back to simple and Constitutional!

Richard - April 17, 2015

The business side of the plan would encourage growth, but the changes to individual taxes do not go far enough. There is no reason we could not institute a flat tax and severely curtail the number (and thereby diminish power of) IRS workers. That agency has gone entirely too far, and they pick “winners and losers”, based upon political reasons. They are supposed to serve ALL the American people impartially, but they haven’t been doing that. By reforming both business and personal tax codes, it would simplify things for taxpayers, make the tax process far less complex, and reign in what currently is a “rogue government agency” serving the needs of special interests groups vs. the needs of all Americans.

della scott - April 17, 2015

pass a bill to have a flat tax. this is the only fair way for all citizens. eliminate the IRS.

Robert Roark - April 17, 2015

This is another band-aid on a fatal wound. It just re-shuffles the deck chairs. The only acceptable criteria are: eliminate the IRS; tax consumption, not income; assure super majority to make any changes in rate(s); require annual reductions in total receipts so that expenditures have to be reduced; beginning rate 17% dropping each year by 1% until the rate is 12% (assuming the prebate is operational) . This will move taxing power toward the states who will have to undertake more programs as fed programs close down.

Denise - April 17, 2015

From what I’ve read about this plan, my taxes would surely go up. I’m definitely not supportive of paying even more taxes to a government that can’t wisely spend what they already get!

Robert Hammons - April 17, 2015

I’m just a simple hard working stiff and been self employed for 42 years. I’d hate to think of starting a business in todays environment. It’s always been hard to be a small business but today it’s next to impossible. The regulations and tax codes are stifling, the government welcomes your tax money generated by your hard work, investment, and innovations but never make it simple or easy to succeed.
Thankfully I am at the end of the life cycle I have few regrets but am sad to see the direction our country is heading.
All of the founding fathers efforts don’t seem to matter anymore. Freedom is a fleeting critter.

John Luzietti - April 17, 2015

I will not support a plan that does not eliminate or greatly reduce the size and power of the IRS.

John Whitmer - April 17, 2015

The plan appears to have merit based on reducing the tax burden on business but the real problem is the enormous overly complex tax code; it should be scrapped and a new approached sought. A consumption tax as proposed by the Fair Tax group makes the most sense.

George Poz - April 17, 2015

Tax reform should abolish IRS. Reduce size of the government.

Janice Brown - April 17, 2015

Years ago, I had read of a tax plan by Dan Quale and I liked it. BUT, I do believe the Fair Tax would be the way to go. Maybe 10% on everything you buy (excluding certain grocery items–). Not sure I would include a “first” house, but everything else. Then EVERYONE would be paying something. Too many people get too much back (especially when they get more than they paid for taxes)

Cliff Franks - April 17, 2015

Abolish the IRS. Institute a FAIR tax where every person pays the same percentage in taxes on income from any source. Or . . . make a list of basic food items which are considered necessary and healthful and tax everything else that is sold. That way if one buys more, one pays more taxes. In any case we won’t need the added expense of the massive IRS. They don’t “make” money, they just collect it. With a point of sale added tax we could do away with our burdonsome tax code and the new burgeoning economy would easily absorb the IRS people who really add nothing to the economy of our great nation. In any case we must “simplify, simplify” our system for raising money from our loyal citizenry.

Rachel Verdon - April 18, 2015

What do I think of the Lee-Rubio tax plan? It’s bad and does not address the problem.

Senators Lee and Rubio are merely tinkering with the status quo. Personal and business taxes need to be simplified, the entire 74,000 page IRs TAX CODE thrown out and replaced with either a flat tax or consumption tax.

If we are to promote growth and remain as a competitive nation on the world market, we must end all business taxes. Merely reducing corpora taxes from 39.6% to 36% today will flip back up tomorrow; no more “deductions” no “itemizing.” No perks for anybody.

The Lee-Rubio tax plan is not simple enough to end the myriad of laws, loopholes and corporate cronyism. We need something revolutionary.

1) If we are going to cut taxes, we must first cut the size of government; auction off all the bureaucracies, and pass a balanced budget amendment.
2) The unfunded liabilities have to be paid off by returning Bureau of Land Management holdings, some 50% of all US lands, to the States respectively..
3) Social Security needs to be semi-privatized as Chile has done, so seniors double their Social Security benefits.
4) Medicare needs to be completely abolished, Medicaid in the states extended as welfare, and interstate commerce opened up for consumer access to competitive and affordable health insurance; for babies, adults and seniors alike.
5) Government student loans need to be abolished, encouraging students to help with the harvest to fund college.
6) Fannie and Freddie need to be completely shut down so as to get the FHA banks out of Wall Street.
7) The Federal Reserve Bank needs to be audited, exposed for its crimes, and completely shut down.
8) Abolish all property taxes, private and corporate to promote stabile communities and a sense of personal security. We should not be “renting” from the state.

Then the economy can grow. Socialism has failed us miserably.

Constitutionally limited government.
Fiscal responsibility
Free market principles.
We have to get our house in order pronto!

Do you know what will happen if the currency fails after the Fed’s bailing out Fannie and Freddie? People will demand that the BLM open up homesteading so that we can be self sufficient.

Dan Feagin - April 18, 2015

A lot to digest. On first look: Wouldn’t eliminating income tax for businesses on their foreign operations just encourage them to move more work out of the country?

Etta Holmes - April 18, 2015

Here’s what I don’t like about taxes. I feel like I’m taxed here, taxed there, taxed everywhere. If I earn a bonus for job performance, that gets taxed. That’s my bonus for my hard work. Why does the government get to take half of MY bonus? If I get a Christmas bonus (a gift from my employer), that gets taxed. If I take money out of my IRA before retirement, that gets taxed. HEAVILY taxed. It’s my $!!! I pay taxes on everything I purchase. I pay taxes every year on my vehicle, my property. Every darn year! I pay taxes for schools, welfare for others, health care for others, social security I may never see. I pay taxes on phone bill, internet service, tv service… on and on. It never stops. Abolish the IRS and cut government spending. The federal government has become a criminal enterprise. We need everyday people, real citizen politicians, who go to Washington and make real change. This reads like more of the same. At the end of the day, I’m still taxed here, taxed there, and taxed everywhere. Rush Limbaugh and Sean Hannity run commercials about, “Ooh, be scared of the IRS, if they come after you.” That’s insane. Shut it down!

Lee Arthurs - April 18, 2015

This plan is amateur and incomplete when compared to the FairTax plan which has been placed before Congress for consideration for almost 20 years now. Eliminating the IRS, as well as many taxes presently in place and replacing them with a straight forward consumption-based tax system makes all the sense in the world. Please give the FairTax plan your serious review and consideration.

Robert [Bob] Finlay - April 18, 2015

In addition to his tax plan –which is certainly needed–I hope you saw Rubio on Hannity earlier this week. He did a fabulous job –without any notes- I really think he would make a terrific president. Just what America needs!!

Larry Bayless - April 18, 2015

Doesn’t do enough. The best plan is to eliminate the IRS, and the 16th amendment and replace income tax with the most researched bill in Congress HR25 FairTax as written. FairTax is an end user consumption tax that is revenue neutral and increases take home pay 25 to 40% and would be good for America.

Gene Blazer - April 18, 2015

Quite frankly, any change would be an improvement! But, my thoughts center around “skin in the game”. ? Anyone in the United States (whether legal or illegal; whether rich or poor) SHOULD pay taxes! If one purchases anything, even a loaf of bread, they should contribute to the treasury. If it is based on percentage, then the more you spend, the more taxes you pay. How simple and effective is that?

Robert Achee - April 18, 2015

Fair Tax plan would give an immediate boost to everyone and all businesses. When people get all of the money they earned in their hands rather than only 75 or 80 percent they would realize how destructive the income tax is to the US economy. The Fair Tax plan allows each person and business to determine when they pay taxes. There is a bill in the House of Reps that only needs a couple of sponsors and I would like to see someone introduce it. J too have heard Rubio speak of the Fair Tax, but no action. So far Mike Huckabee is the only person I have heard that has put this plan as part of his platform rhetoric. Anything that can decrease the size of Fed govt (abolish IRS and any other unnecessary depts) can only be positive for the US as a whole.

Alan Grosso - April 18, 2015

Doing anything with the current IRS tax code is continuing to rearrange deck chairs on the Titanic. We need to eliminate the entire concept of taxing income and go to a national sales tax capped at 15%. It should take a 75% yes vote of Congress to raise it with a cap raise of no more than 2% over a 5 year period.

Sue Regan - April 18, 2015

This plan continues Business As Usual regarding USA taxes, simply adding to the thousands of incomprehensible pages.

The whole tax code needs to be scrapped and replace, along with Obamacare, and replaced with the Fair Tax, which needs also to be addded to the Constitution so that no one would be able in the future to play around with it in the future.

Thomas Hudson - April 18, 2015

It’s a terrible plan. We must abolish the IRS. The only fair tax is a consumption or national sales tax. Every other form of taxation can easily be manipulated by politicians.

Kent Stewart - April 18, 2015

The FAIR TAX I believe is still a much better plan for individuals as well as the entire country.

Kent Stewart - April 18, 2015

The Fair Tax is still a much better plan. I believe it is the best thing since sliced bread! Tinkering with the tax code is just putting a band aid on a broken arm. We need to replace the tax code and get rid of the IRS. PERIOD

Fred Venditti - April 18, 2015

Flat tax is not fair to low income people.
We need a value added tax.. it is simple
needs only reports from people that add value, sales outlets etc. The tax is collected as part of the sale activity and
“no tax, no sale”… this gets the multimillionaire drug dealer when he buys a mansion. IRS can’t do that. Also the myth of balanced budget is no practical… if the country gets in trouble they will find a way to get the money, budget or no budget,: just ask President Johnson.

gail - April 18, 2015

Could be a lot better. Let’s go for the Flat Tax –

Paul K. Moyer - April 18, 2015

When I read another tax credit for children that was the signal to me that I am apposed to this proposal.

Gary & Carlene Frame - April 18, 2015

We like it!

David Hollister - April 18, 2015

It is a start for helping business growth but otherwise of little value

Wally Conley - April 18, 2015

Looking at the Lee/Rubio tax plan, credits should be for taxes due not a refundable payment. We need to lessen the burden of providing continuing welfare plans. We need to get people working and protecting them (army/navy). We need to provide less. As far as teacher/college professors a good income is great but not to the extent of how tenure is used to protect them from dismissal. None of the rest of us have such a protection why should they. To me doing the best possible performance is the way you retain your job.

Wally Conley - April 18, 2015

Tax reform is a belief when you try to be fair to everyone, acknowledge that everyone needs to have a tweek or two. Why not just say grin and bear it and not make exceptions. The tax law could be very simple.

Bill Hecker - April 18, 2015

Placing such a steep increase (15% to 35%) above $150k stiffles individual initiative for those trying to achieve the American Dream and reinforces mediocrity. The 28% tax on incomes over $150k now is bad enough. Three levels of income tax is sufficient – 5%, 10%, and 15% max. No way are we going to stand for increasing our taxes for an overgrown, bungling, federal government with employees who cannot be fired for incompetence or inept management of the funds we entrust them with. AND, we need a balanced budget amendment.

Gary Terashita - April 19, 2015

I have appreciated much of what I’ve heard from these senators since they took their offices, especially Mike Lee. However, the details I’ve heard about their tax reform proposal seem weak compared to a flat tax and abolishing the IRS. Federal income tax, which I believe to be unconstitutional as is the IRS should simply be irradiated.

Jonathan - April 19, 2015

It’s a merger start, no tax should be more than 10%. And repeal the “death tax”

Moe Pack - April 19, 2015

A flat tax of not more than 20% is what we should be looking at. What Rubio and Lee proposed, in my opinion, is not the answer. I am a small business man and their plan would raise my taxes.

Catherine Gollan - April 19, 2015

I agree with the business part of the tax plan. I’m a bit confused about why the plan includes the $2, 500 child tax credit. I never had the other one until the last year of paying taxes with a child on board. It was nice to get but we had survived on our military income for 17 years without it. So why are we thinking of upping it now, Rubio?

Ron Teece - April 19, 2015

Having worked 35 years for a large multinational corporation and then owning a small business for several years. Reducing taxes on small business is critical for job creation. I like the plan as the mechanism for economic and middle class growth.

Jane Gill - April 19, 2015

I support a flat tax. Small business needs a tax break. For the death tax, can’t an exception be made if the recipients of a farm or business should continue that business couldn’t we have an exemption for them?

Georgia Burda - April 20, 2015

15% should be at 250,000 or less and social security should not be taxed. I would much prefer a flat tax and no IRS

Margaret Barnes - April 20, 2015

A flat tax where everyone pays a (small!) percentage of income (unless it is already
taxed once as SS has been) is much less complicated. If this is debated, it should be recognized that children are a resource, not income!

RICHARD J. MANSELL - April 20, 2015

Both my wife and I are retired so we have the oppoetunity to watch the news ( FOX, CNN,etc.). We are both for a flat tax of !0% that is is controlled by the states vs. IRS and Big Goverenment..

tina - April 20, 2015

First congress should slash excessive spending. Leave most regional functions to states. Federal Government function is to maintain a military force to protect our nation/ borders and maintain a topnotch transportion highway system and airways system. Human welfare programs including medical care, education, care for disabled, housing and etc. is a State function. Monies for our National protection should be collected equally from all inhabitants. Simplist method is probably consumption tax. The percentage could be 5-8%. Most states also levy a sales tax for State functions and seems to work ok. Most of us could tolerate that and still feel like we have done our part. States should determine the salaries of US congressman. This sounds simplistic but it is a start. Pray for Nation….

Norman Lane - April 20, 2015

I fell that The Fair Tax would be the
fairest of all because everyone has to
pay the same for those that pay or
don’t pay taxes as this time.

Alan Mast - April 20, 2015

Flat tax-no exception. Everyone pays same rate and everyone has investment in our country. Any one who lives entirely off the public dole should be denied a vote. They should have no say in how much others contribute to their welfare. Stupid to tax gov’t checks, unless they are earned income.

Robert Goddard - April 20, 2015

With this plan the jump above $74,999 for a single to 35% will require that person to make almost $97,000 to offset the tax increase. make the next increase 20% and the top starting at $250,000 income, 25%. limit home loan interest to the first $200,000 of home value. after $500,000 income not child tax deduction.
The government needs to STOP spending. Limit welfare and mean/needs test recipients. All able bodied welfare recipients MUST work.

Carl Gustke - April 21, 2015

Not bold enough! Why not strive for true reform and go for a simple consumption or flat tax, in that order of preference?

David Goza - April 21, 2015

The only fix for the tax system in the U.S. is the elimination of the IRS. And that’s not going to happen until we start retiring the lifers from the senate and the house. TERM LIMITS for congress.

Richard Boozer - April 21, 2015

They need to support the “Fair Tax” which is the best solution of the tax issue.

Gayle Sharp - April 25, 2015

Why not eliminate the IRS? Why not a flat tax or the Fair tax? Why not eliminate the Death tax? Why not stop taxing Social Security benefits? Why not eliminate means testing? Just saying! Where does Ted Cruz weigh in?

Diane S Woodard - April 27, 2015

Still too confusing. I agree with most of these respondents and think it is not what we are thinking a good tax reform would be. Unacceptable!

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