Chris Christie (Tax Reform)
“Flatter, Fairer And Simpler Individual Income Taxes”
- Lower Rates For Every American: Simplify the income tax system to just three individual income tax rates, instead of the current six. The top rate will be no higher than the 28% set in the last major successful tax reform effort in this country – the Bradley-Gephardt-Reagan law signed in 1986. and the bottom rate should be single digit.
- Keep Taxes Simple By Reducing Deductions And Giveaways: Eliminate or modify deductions, credits, and targeted provisions in the code – both on the personal and the corporate side – to ensure that the plan does not increase the deficit. One approach in this regard is to cap the total amount of deductions and credits that an individual or married couple could take.
- Governor Christie would keep in place the deduction for charitable contributions and that for interest on home mortgages – at least for a first home.
“Putting Capital To Work In America”
“U.S. companies are declining to make investments here at home.”
- Encourage Capital Investments In Equipment: “Companies are not making capital investments in the U.S. in part because they are concerned about the anti-growth direction of Washington.” Christie wants to permit the full expensing of corporate investments in capital equipment and encourage this type of very important investment to “spur the type of growth that will create middle class jobs.”
- A One-Time Repatriation Holiday: Allow American companies a one-time opportunity to repatriate profits earned overseas over the last two decades at a much lower tax rate - 8.75%.
- “This would unleash well over a trillion dollars of capital that would be invested in the United States of America to expand companies in the U.S, build factories and warehouses, improve our infrastructure and create jobs.”
- A Territorial Tax System: As it stands now, America is among a tiny handful of nations which have a system that taxes profits twice. Christie would have his “one-time repatriation holiday” be combined with a permanent transition to a Territorial Tax System going forward, in which profits are taxed just once in the country in which they are generated.
“A More Competitive Corporate Tax Rate”
“While other countries have been reducing their rates to improve their competitive position, the United States has been stuck at 35% which discourages investment and job creation.”
- Reduce The Corporate Tax Rate From 35% To 25%: The Organization for Economic Co-operation and Development (OECD) studies have shown that corporate taxes are the most harmful to growth. In fact, Standard & Poor’s reported that cutting the corporate tax rate by ten percentage point could create as many as 10 million jobs over the next five years, while improving labor force participation. NEED TO FACT CHECK THIS
- Repeal The Medical Device Tax: Repeal one of Obamacare’s 2.3% tax on medical devices. “The medical device industry has been a source of growth for the U.S. economy, a source of exports, and a source of innovation.”
Eliminate The Payroll Tax For Those At The Beginning And End Of Their Careers
In outlining his entitlement reform proposals, Governor Christie recommended eliminating the payroll tax for those above age 62. Today, Governor Christie is also calling for a similar tax break for those newly entering the work force, below age 25. This will encourage those nearing retirement to keep working should they want to; and make it easier for the young to enter the work force. (CCWEG)