Jeb Bush Releases Tax Plan
You can read the whole thing here. There’s a lot to like in it. And the whole thing is very achievable. Greg Mankiw’s has a good list of the good parts:
- It lowers the top rate on personal income to 28 percent, the same rate as the bipartisan 1986 tax reform.
- It broadens the base by capping the use of itemized deductions.
- It eliminates the deductibility of state and local taxes, so low-tax states and towns no longer subsidize high-tax ones.
- It maintains the deductibility of charitable giving, encouraging private solutions to social problems.
- It reforms the tax treatment of secondary earners and seniors, who are more responsive to tax incentives than primary earners.
- It eliminates the stealth marginal tax rates from PEP and Pease.
- It eliminates the estate tax, so the tax system no longer penalizes those who want to help their children and grandchildren.
- It lowers the corporate tax rate to be close to international norms.
- It moves from a global to a territorial tax system, like most other nations have.
- It eliminates the deductibility of interest expenses, putting debt finance and equity finance on a more level planning field.
- It includes full expensing of investment expenditure, moving the system toward a consumption-based tax.
- It expands the earned income tax credit for childless taxpayers, strengthening the social safety net.