Lee and Rubio on Tax Reform

They write,

by consolidating the corporate tax system into a single layer and lowering the maximum rate to 25% on both corporate and pass-through entities, our plan eliminates double taxation of capital gains and dividends, and establishes parity among large and small businesses. And under our proposal, firms with overseas operations will no longer be taxed twice (once abroad and again at home), but only in the country where income is actually earned.

They would also allow corporations to expense investment, rather than having to use depreciation schedules.

Danny Vinik adds,

They would eliminate just about every tax deduction, with the exception of the deduction for charitable giving and a reformed mortgage interest deduction (although they don’t say how it’s reformed). In return for eliminating the standard deduction, they would create a new $2,000 personal tax credit ($4,000 for joint filers).

Vinik notes that Lee and Rubio’s reforms on net would reduce revenue, thereby enlarging the deficit. Maybe you could offset that by abolishing some government departments and agencies.