Marco Rubio on Taxes

Senator Marco Rubio's tax plan does not go for the flat tax idea like Carson or Cruz.  Instead it changes the system's seven tax rates to three.  The rates are: 15% for individuals making 0 to $75,000 and couples making 0 to $150 thousand, 25% for individuals making $75,000 to $150,000 and couples making $150,000 to $300,000 and 35% on everything over the $150,000 mark for individuals and $300,001 for individuals.  Eliminates all deductions save the charitable deduction and an altered mortgage deduction. Creates a new $2,000 (individual)/ $4,000 (couples) refundable tax credit replacing the existing one that phases out for individuals at $150,000 and couples making $300,000.  Additionally this credit will be unavailable to income earners who make $200,000 individual and $400,000 couples.  It eliminates the alternative minimum tax and the marriage penalty.  Also it creates a $2,500 tax credit toward college expenses and jobs skills training but has the same restrictions as the refundable tax credit as mentioned above.  The Rubio tax also creates a new tax credit for kids on top of the existing one for an additional $2,500 and it will be refundable against the payroll tax in addition to regular taxes. His plan offers a 25% refundable tax credit toward businesses that offer paid family leave for four to 12 weeks but is limited to $4,000 per worker.  Also, all business income including taxes on business investments are changed to a single 25% rate.  Cruz does the same thing but his rate is 16%.  Rubio also switches to a territorial tax system where corporate income is only taxed here in the United States and not abroad.  Also, interest is no longer taxed under Rubio's plan with respect to individual bank accounts.

Final thought:  Rubio takes the existing tax code and simplifies it, but you cannot file on a form the size of a postcard like Cruz's or Carson’s.  Is this an acceptable plan? Sure.  Namely because it is an improvement over our existing system.  However, does it go as far as Cruz and Carson's?  You be the judge.