The Case for the Lee-Rubio Tax Reform Plan

Senators Mike Lee (R-UT) and Marco Rubio (R-FL) recently released a tax reform plan. The business side of the plan would reduce marginal tax rates, permit full and immediate deduction of capital expenses, eliminate the double taxation of corporate income, make interest neither taxable nor deductible and move to a territorial tax system. This business tax reform would dramatically improve economic growth and the real incomes of most Americans. It is a valuable model for how Congress should approach business tax reform. The individual side of the plan would repeal most itemized deductions, moderately reduce tax rates for many taxpayers and substantially expand the child tax credit.