If you own a private island, you should REALLY consider voting for Jeb Bush in 2016.
A little lost when it comes to issues of public policy? Felling like this guy? Well relax, we’re here to help. This is 10-Point Expert, a series of articles that examine policies which are currently being introduced to the political landscape, in 10 simple to understand points. For this installment we talk about the much talked about Jeb Bush tax plan!
Point 1: Bush’s proposed tax plan essentially would have three specific tax brackets; those paying 10%, those paying 25%, and those paying 28%. To give you an idea, the current top rate which individuals pay is at 39.6%. His plan would greatly increase individuals getting a standard deduction and those qualifying for the Earned Income Tax Credit.
Point 2: An idea that has been very popular in this presidential primary among GOP leaders is the elimination of the estate tax and “the marriage tax.” The first is problematic when you take income inequality into account and the other is really, REALLY hard to get rid of.
Point 3: The proposed Bush tax plan is very favorable to corporations with more leeway on territorial taxation (paying taxes on profits made overseas) and lets companies immediately deduct investments (currently companies slowly deduct business investments while using them over a number of years). But the biggest boon of all, Bush’s tax plan would cut corporate taxes from 35% to 20%! That is a crazy amount of tax cuts if you were to add them all up.
Point 4: Yet Wall Street looks to get a bit of a hit from the Bush tax plan with the elimination of the carried-interest loophole in the current tax code. It’s a tax break where hedge fund managers and private equity personnel get taxed lower on income that they get from their job. Considering the GOP brass has been backing the carried-interest loophole as a legitimate tax break for a long time, it’s hard not to see Bush at least getting a little pushback from his party.
Point 5: Believe it or not, the Bush tax plan actually shares an idea with the Obama administration! [GASP!] Bush’s proposed cap deductions on charitable donations on the wealthy looks remarkably similar to something President Obama suggested earlier this year!!!
Point 6: As this Wall Street Journal Op-Ed alludes to, if there was an underlining thesis to the Jeb Bush tax plan, it would be “creating speedy economic growth, by any means necessary!” His idea is to speed up general economic growth from 2% to at least 4% a year. This plan is has something that will make you royally pissed one moment, then make you think, “that’s actually a pretty all right” the next. In many ways, it’s the Kanye West of tax plans!
Point 7: You could see fiscal hardliners that support a flat tax plan (a la Rand Paul or Ted Cruz) be absolutely against Bush’s tax plan. Their main problem would be the increase to the “47 percent”, a belief held by many fiscal conservatives that say 47% of the population does not pay federal income taxes due to the current tax code. Considering his tax plan would forego about 15 million households from paying federal income taxes – and theoretically increasing the “47 percent” – you can see where many current GOP candidates would be against his tax plan.
Point 8: Speaking in economic terms, Bush’s tax plan is… weird. It’s tax code potpourri. By cutting and pasting various ideas to a plan that specifically tries to increase economic growth and not do the traditional idea of just trying to streamline tax code, it’s essentially trying to create a faster car by changing its outside design. But instead on a sleek Roadster, you get is a tax plan that looks like The Homer, economically speaking.
Point 9: Because there is so much focus of quick economic growth, the real winners of Bush’s tax plan are actually the wealthiest 1%. As an analysis from Citizens for Tax Justice points out, more than half the dollar value for the tax cuts will go to the richest 1%!! This makes sense because if the middle-class were to get a tax cut, so would the rich. Add that to the tax cuts the rich exclusively get with Bush’s tax plan, then they benefit from it the most. In other words, if you’re against income inequality, it’s safe to say you’re not a fan of Bush’s tax plan.
Point 10: Politically speaking, Bush’s tax plan is pretty smart one because his base voters will look at it and see a strong push on economic growth. Granted there are things fiscal conservatives will have problems with, but considering how experimental – to be read as “bat shit insane” – other Republican tax plans are this election cycle, Bush’s tax plan is oddly reassuring for “traditional conservatives.”
(Photo Credit: Jeb Bush’s Instagram, Google Images)