Issue Position: A Pro-Growth, Pro-Family Tax Plan for the New American Century

Issue Position

America's outdated tax code was designed by leaders of the past for the economy of the past. Unfortunately, the status quo is too complex, hurts families and job creators, and holds back our nation's potential to compete around the globe. Marco believes that to meet the potential of the New American Economy, we need less government, not more. If we reform the tax code in the right way, and couple it with innovative policy solutions, we can grow our economy while encouraging work, saving, investment, and stronger families.
Marco has a tax plan that . . .
Shrinks the Tax Code and Cuts Taxes

Reduces the Number of Tax Brackets from Seven to Three:

Dramatically Simplifies the Tax Code while Protecting Important Priorities

Cuts taxes, letting taxpayers keep more of their own money instead of sending it to Washington.
Dramatically simplifies the tax code by eliminating all itemized deductions and tax "extenders."
Under Marco's tax reform plan, the charitable contribution deduction and a reformed mortgage interest deduction would be available to all taxpayers.
Creates a new $2,000 (individual) / $4,000 (married filing jointly) refundable personal tax credit in place of the standard deduction: Credit phases out beginning above $150,000 (individual) / $300,000 (married filing jointly) and would be unavailable to taxpayers with an annual income in excess of $200,000 (individual) / $400,000 (married filing jointly).
Eliminates the Marriage Penalty and the Alternative Minimum Tax (AMT).
Consolidates the maze of higher education tax incentives into a single, $2,500 universal tax credit for the first four years of post-secondary education and costs related to eligible job skill training. The credit phases out between 400 -- 500 percent above the Federal Poverty Level (roughly $97,000 -- $121,250 for a family of four).
Addresses the tax treatment of health care as part of a comprehensive effort to repeal and replace Obamacare with consumer-centered reforms. The plan repeals all 21 Obamacare taxes.

Strengthens American Families

Provides Tax Relief to Middle-Class Parents and Families

Creates a new, partially refundable Child Tax Credit of up to $2,500 per child.
The new child tax credit is applicable to taxpayers' total income and payroll tax liability, to offset the parent tax penalty and help working parents.The credit phases out beginning above $150,000 (individual) / $300,000 (married filing jointly) and would be unavailable to taxpayers with an annual income in excess of $200,000 (individual) / $400,000 (married filing jointly).
The new child credit is in addition to the current child credit.
The new child credit is refundable against the payroll taxes that are the biggest tax burden on low-income families. It provides a meaningful incentive for work.

Provides Tax Relief to Employers that Offer Paid Family Leave

Rejects big government proposals put forward by Democrats that hit small businesses with new mandates and workers with new tax increases.
Provides a 25% non-refundable tax credit to any business offering between four and twelve weeks of paid family leave, limited to $4,000 per worker.
Adaptable to all employee arrangements, including part-time work.
Applies in a number of situations where workers have qualifying family or medical events, including: a newborn child in need of care; an elderly parent with declining health; a personal health crisis; or a spouse's military deployment.

Cut the Tax Rate for All Businesses to 25%

Integrates all business income into a single tax rate no higher than 25%.
Brings parity to the taxation of all businesses, big and small.
Allows immediate expensing of capital expenditures (equipment, structures, inventories, and land), ending confusing depreciation schedules and leading to a massive increase in job-creating investment.
For American companies and individuals doing business overseas, eliminates the double-taxation of income earned abroad by transitioning to a competitive territorial tax system. For currently deferred overseas earnings, the plan provides a 6% deemed repatriation rate, payable over ten years.
Eliminates unfair carve-outs benefiting large corporations and high-tax states.

Taxes all business income once at the entity level and eliminates punitive double-taxation of saving and investment income.
Provides a transition period, which requires a one-time booking of investment at current law capital gains and dividend rates, minus the 3.8% investment tax hike from ObamaCare.
Immediately eliminates the federal estate tax, a tax that penalizes family-owned farms and businesses and reduces saving and investment in our economy.

Ends the Taxation of Interest Income

Fully removes interest from the tax base; interest income is no longer taxable or deductible
Ends the bias in favor of debt rather than equity, leading to a more stable financial system and healthier economy

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