WASHINGTON (AP) — With
an eye toward a possible
run for the White House,
Republican Sen.
Marco Rubio signed
onto an extensive plan
Wednesday to cut taxes
for investors, parents
and businesses in an
effort to spur economic
growth and create jobs.
The plan would likely
add billions to the
national debt, though no
official assessment has
been done. To address
the nation's finances,
Rubio said, Congress
should pair a
"pro-growth" tax
overhaul with
significant changes to
Social Security and
Medicare, a stand that
could draw criticism
from advocates for older
Americans.
The Florida senator
joined with Republican
Sen.
Mike Lee of Utah to
unveil the package
Wednesday. It builds on
a plan the two senators
first announced last
year.
The package would
simplify tax filing for
most families, reducing
the number of income tax
brackets from seven to
two. It would eliminate
investment taxes on
capital gains and
dividends, providing big
tax breaks for wealthy
families. It would boost
the $1,000-per-child tax
credit to $2,500 per
child, and it would
eliminate income
restrictions on
receiving it.
The deduction for
mortgage interest would
be limited and all other
itemized deductions
would be scrapped,
except for the one for
charitable
contributions.
The standard deduction
and personal exemptions
would be replaced by a
tax credit of $2,000 for
individuals and $4,000
for joint filers.
Business tax rates for
large corporations and
small businesses would
be reduced, though
companies could no
longer deduct interest
on new debt, a big issue
for many firms.
"Our hope here is to
trigger economic
growth," Rubio said. "We
believe that economic
growth will help all
Americans, to improve
how much money they
make, by creating
better-paying jobs, by
making America the best
place in the world for
those better-paying jobs
to be created."
"I would say the vast
and overwhelming
majority of Americans
will see significant tax
relief here," Rubio
added.
Lee called the package
"pro-growth and
pro-family at the same
time."
Rubio is a potential
Republican candidate for
president in 2016.
"Let me just say that no
matter what I run for,
whether it's the Senate
or the presidency, of
course this will be part
of our platform," Rubio
said.
When asked about
potential revenue losses
from their plan, Rubio
and Lee said any
evaluation should
include the plan's
effect on economic
growth.
Rubio said that any plan
to attack the nation's
growing debt should pair
spending cuts with
efforts to boost
economic growth.
"Our generation is going
to have to accept that
our Medicare and our
Social Security is going
to be different than our
parents'," Rubio said.
"It's still going to be
the best thing in the
world, but it's going to
be different."
The Rubio-Lee package
came the same day a
group of senior
Democrats from the
House and Senate
unveiled a proposal to
expand several tax
breaks that target low-
and middle-income
families. President
Barack Obama
championed the proposals
as part of his 2016
budget plan.
Obama has said he would
like to work with
congressional
Republicans to overhaul
business taxes. But
administration officials
have said there are too
many disagreements among
Democrats and
Republicans to
realistically tackle
individual taxes.
The Rubio-Lee package
would reduce the top
income tax rate for
individuals from 39.6
percent to 35 percent.
The new top rate would
apply to income above
$75,000 for single
filers and above
$150,000 for joint
filers. Income below
those thresholds would
be taxed at 15 percent.
The package would reduce
the top corporate income
tax rate from 35 percent
to 25 percent. It would
also eliminate U.S.
taxes on the foreign
profits of U.S.-based
businesses, a huge boon
to these firms.
Business owners who
report business income
on their individual
returns would get a top
tax rate of 25 percent.
And all businesses would
be able to write off
capital expenses
immediately, eliminating
a complicated system of
depreciation.
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