Jeb Bush’s tax plan is really confusing. Why? Because it’s only tweaking the system as it stands now. I’ll try to simplify it the best I can.
Tax Rates: Jeb vs. Rand
Rand’s Plan: Flat, 14.5% across the entire spectrum
Jeb’s Plan: A Progressive tax system that has a top rate of 28%.
- Singles making below $11,300 will pay 0% in taxes, along with couples making below $22,600.
- Singles making between $11,301-$43,750 will pay 10%, along with married couples between $22,601-$87,500.
- Singles making between $43,751-$97,750 will pay 25%, along with married couples making between $87,501-$163,800.
- Singles making $97,501 and above will pay 28%, along with married couples making above $163,801.
- Couples w/ Two Children: Making below $38,600 = 0% tax rate
- Singles Making below $15,300 = 0% tax rate
Confused yet? Me too. So singles who end up in the lower part of the 10% bracket will possibly be able to pay 0%? But he just established that they won’t pay 0%? I’m confused here. This doesn’t make sense. If he wanted it to be like that (0% at $15,300), then why not just make that part of the first bracket?
Deductions: Jeb vs. Rand
Rand’s Plan: Only 2 Deductions remain (Mortgage Interest + Charitable Contributions)
Jeb’s Plan: Um… Eliminate a few?
Here are all the deductions that Jeb keeps:
Um Jeb, there are a lot more than just the Mortgage Interest & Charitable Contributions deduction. Anything else? Kinda left out any specifics on the rest.
Deductions for business? Um, that’s even more confusing. Here’s just GENERAL tax policy for Corporations, for example:
Does this look simple to you? Can you find where they talk about deductions? Can you find what Jeb cut here? I can’t, but that’s okay. He said he’s going to close loopholes in deductions, and specifically, putting corporations on level playing field:
Because the proposal would adopt territorial taxation and full expensing, these special tax expenditures would no longer exist, rather all companies would have equal tax treatment.
By “level” of course, I mean broken into brackets by tax rates. True equality would be a flat rate applied across the board, as with Rand’s 14.5% rate for both business and corporate income, and no deductions at all. And, of course, leave it to Jeb to be vague. We still don’t know what other deductions he’d do away with for corporations.
Rand’s Plan: Eliminate the Payroll Tax
Jeb’s Plan: Jeb wants to provide relief to Seniors who have reached full retirement age, which he is proposing to raise. This isn’t to say that raising the age is necessarily bad, but it will not go over well with Seniors now.
The following is from Jeb’s plan:
Nearly all workers must contribute 6.2 percent of their income (up to specified levels) for the employee share of Social Security taxes. Currently, seniors who are eligible for Social Security must continue to pay payroll taxes so long as they remain in the work force. This proposal eliminates the employee portion of payroll taxes for workers who have reached the full retirement age.
So how exactly will the shortfall in contributions to SS work? Will employers now pay in that other half as well? I mean, that’s what I’m assuming here. It doesn’t say what the effect would be on people’s net income, or even gross income for that matter. We might assume that they both would go up, but unless we’re talking about lowering contributions here, and again, that’s not something I don’t fully oppose, I’m not sure this will end well.
The Internal Revenue Service:
Rand’s Plan: Eliminate
Jeb’s Plan: Under Jeb’s plan, we simply do not know. But being the middle of the road guy that he is, I believe it’s safe to say he’s just push to “reform” the IRS.
Rand’s Plan: Eliminate
Jeb’s Plan: Jeb Bush is proposing that the Fed’s partner with online security firms to help increase security for corporations, the government, and the people in general from cyber attacks. His push would “create” a few million jobs in the process. However, we must remember to through out that already uneven playing field he’s proposed as a tax plan, and push for corporate welfare, which is undoubtedly what this is.
Now, besides corporate welfare, what is this? An attack on probably privacy rights. Do you remember the horrendous bills SOPA, PIPA, CISPA, and CISA? This has been the goal of those bills, and here he is in full support of it.
Rand Paul’s plan is simple, and specific. You have one flat rate across the board. It cuts the fat that is corporate welfare out. It cuts out all the deductions except for the two mentioned earlier. It get’s rid of the IRS.
Jeb Bush’s plan is complex, hard to understand, and simply put, confusing. He keeps the Progressive model of taxation. He keeps corporate welfare, and will probably expand it. He keeps the IRS. He is the status quo that has plagued Washington DC since his Father’s years in office, and we simply cannot afford to have any more of that. At all.