Economy

Rubio Would Give The Biggest Tax Breaks To The Richest Of The Rich

CREDIT: AP Photo/Haraz N. Ghanbari

Republican presidential candidate Marco Rubio

Republican presidential candidate Marco Rubio’s tax plan has a number of facets that differentiate his plan from his competitors’. It would completely get rid of taxes paid on investment income, which would overwhelmingly benefit the wealthy and represents a break from most Republican plans. He would also lower the top tax rates paid by the wealthy — from the current top rate of 39.6 percent to 35 percent — and corporations, from the on-paper rate now of 35 percent to 25 percent. And he would eliminate the estate tax paid by the richest 0.2 percent.

At the same time, he proposes a significant increase in the child tax credit, which he has said will “benefit millions of middle-class, hardworking Americans.”

So who really gets more out of his plan — the wealthy or the middle class? In a new analysis from the Tax Policy Center, the answer is clearly the richest of the rich.

Over the next decade, the center estimates that the poorest fifth of Americans would end up paying $232 less in taxes than they do now, while the middle would see $1,430 in relief. But the richest overwhelmingly make off with the biggest benefits. The richest fifth capture more than 70 percent of all of the tax relief the plan offers, while the top 1 percent would grab more than 40 percent, paying $204,995 less. The richest 0.1 percent would save more than $1 million.

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CREDIT: Tax Policy Center

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CREDIT: Tax Policy Center

At the same time, the center estimates that federal revenue would be reduced by $6.8 billion within ten years and by $8 trillion for the next ten. While it doesn’t incorporate any assumptions about economic growth, which could in theory offset some of those costs, those assumptions are often based on questionable or even false premises.

While Rubio is positioning himself as a more moderate candidate among the leading Republican contenders, the income distribution breakdown of his tax plan looks incredibly similar to those of Jeb Bush, Donald Trump, Ted Cruz, John Kasich, and Ben Carson, even if they all have their own particular details.