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

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%).

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

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