Governor Kasich has his own ideas for tax reform. They
resemble Rubio's but seem to be limited in scale in my opinion. Any case,
here is what Kasich will do to taxes as described by the Huffington Post and
Fortune.
Kasich will lower the top rate from 39.6%
to 28% and lower the other rates as well, but those new rates are not
specified. Additionally, Kasich plans to reduce the total number of tax
brackets from 7 to three. He will reduce long term capital gains taxes
for top income earners from 20% to 15%. The death tax (estate tax) like
every Republican tax plan will be eliminated. He intends to increase the
federal earned income tax credit by 10% while maintaining charitable deductions
and mortgage deductions. Business taxes will go from 35% to 25% mimicking
Rubio's tax rate, but Kasich doubles the research and development tax credit
for small businesses. Also, a tax discount will be made available to
American companies that store money overseas in an attempt to have them bring
some of that money back to the United States. From there he does the same
thing as Rubio by switching to a Territorial tax system where the government
will only tax corporate income earned in the United States.
Final Thought: Basically Kasich changes the tax
code a little bit. He tweaks it if you will. Reason being is that
he knows Washington D.C. will not, or avoid any dramatic changes to the status
quo. As such, Kasich will have to pull out all the stops if he would try
to pass a tax plan like Cruz, or Carson's. Kasich's plan really changes
nothing else with the tax code. Same corporate loopholes and basically
has the same large cumbersome tax code that we all have come to hate. But
you be the judge as to whether Kasich's plan is more reasonable or practical
compared to the other candidates.
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