Jeb Bush photo

Jeb Bush Campaign Press Release - Facts on the Reform & Growth Act of 2017

September 09, 2015

Top Line:

  • Broad-based tax reform will help create high, sustained economic growth leading to 19 million new jobs and rising middle-class incomes. Cutting high tax rates for American businesses will help us compete with China — and win.
  • This plan will eliminate loopholes and carve-outs for special interests in Washington and on Wall Street, and lower rates for American families and small businesses.
  • More than 42 million middle class families will get a 33% cut in their income tax rate, and a family of four earning less than $40,000 will face no federal income tax whatsoever.

Rate Reductions:

  • Collapse the seven tax brackets into three brackets: 10%, 25%, and 28%.
  • Top rate on small businesses will fall from 39.6% to 28% — the lowest since Ronald Reagan.
  • Corporate tax rate falls to 20%, below China's (which is at 25%).

Jeb Bush Lowest Tax Rate since Reagan

Special Interests

  • To lower rates for families and businesses, we will reduce deductions, carve-outs, and loopholes.
  • These provisions reward well-connected Washington and Wall Street insiders rather than American families.
  • Eliminating them will make our tax code fairer and our economy more competitive.

Low-Income Americans:

  • Single individuals earning $8,000 will get an additional $500 earned income tax credit.
  • Low-income seniors earning $10,000 will see their after tax-income rise by $620.
  • 15 million poor families will no longer pay income taxes at all:
    • A married family of four with incomes below $38,600 would no longer pay income tax.
    • Single individuals with incomes below $15,300 would no longer pay income tax.

Middle-Income Americans:

Under Jeb's plan, more than 42 million middle class families will get a 33% cut in their income tax rate:

  • A family of four earning $50,000 will have their taxes cut in half, saving over $1,150 a year.
  • A family of four earning $75,000 will have their taxes cut by 40%, saving $2,400 a year.
  • A single individual earning $50,000 would have taxes cut by 35%, saving $1,911 a year.

Simplifying Reforms:

  • Today, 47 million Americans itemize their deductions. That number will fall to 13 million, resulting in 34 million who will no longer have to file long, complicated tax forms.
  • The elimination of the alternative minimum tax means Americans will no longer have to calculate their income taxes twice.

Deductions:

  • To support the generosity of the American people, the plan maintains the charitable giving deduction.
  • The state and local tax deduction is eliminated to ensure people in low income tax states are no longer ?forced to subsidize high-tax, high-spending state governments.
  • Low-income families will be able to deduct up to 20% of their income while high-income people will only ?be able to deduct 7% of their income.

Businesses:

  • Special-interest deductions for certain industries are eliminated, but businesses will have lower tax rates.
  • If a company buys a piece of equipment that increases productivity, they can now write off the cost of that ?machine immediately, making the U.S. more competitive and creating more jobs.
  • Ending the interest deduction for business will mean that government will stop subsidizing corporate and ?Wall Street debt.

Investment Income:

  • Obamacare's growth-destroying taxes on investment income will be eliminated, returning the capital gains tax rate to 20% — the same rate as under President Clinton.
  • Only those putting their own capital at risk will be able to benefit from the lower rate on investment income.

Other Provisions:

  • Death will no longer be a taxable event with the elimination of the estate tax.
  • The marriage penalty will be eliminated and secondary earners will face a 0% tax on their first dollar earned when they enter the workforce.

Impact of Tax Plan

Taxpayer Type Adjusted Gross Income Tax Liability Change Percent Reduction in Taxes Percent Change in After Tax Income
Single No Dependents $15,300 $500 100% 3.2%
$25,000 $774 45.4% 3.3%
$50,000 $1,911 33.4% 4.3%
$100,000 $1,911 10.5% 2.3%
$250,000 $4,431 7.1% 2.4%
Married Two Dependents $38,600 $1,000 100% 2.6%
$50,000 $1,148 50.2% 2.4%
$75,000 $2,398 39.7% 3.5%
$100,000 $3,648 37.3% 4.0%
$125,000 $3,823 24.4% 3.5%
$250,000 $3,823 7.8% 1.9%

Note: Change in tax liability is shown for filers who do not currently itemize.

Related Images

Jeb Bush, Jeb Bush Campaign Press Release - Facts on the Reform & Growth Act of 2017 Online by Gerhard Peters and John T. Woolley, The American Presidency Project https://www.presidency.ucsb.edu/node/312247

Simple Search of Our Archives