As Rudy's campaign manager told me the other day in New Hampshire, Rudy Giuliani has a strategy to stay relevant between now and February 5th. Today he unveils his tax plan -- and boy what a plan it is!
Here are a few of the things Rudy's plan would do:
... Make permanent the bush tax cuts NOW…not in 2010
... Permanently index the alternative minimum tax (AMT) and then eliminate it when practical (no timetable).
... Get rid of the Death Tax
... Lower the capitol gains and dividend rate to 10% and index to inflation. (Here is where he could go further and actually eliminate the capitol gains tax).
... Lower corporate tax rate from 35% to 25%.
... Trio of tax free savings accounts – Roth style – available to ALL income classes.
... Tax simplication strategy – one page tax return
... Three rates – 10% (40k), 15% (150k), and 30% (150k ).
It’s an optional tax plan. You can pick it or the current tax code. Unlike Thompson plan, you can opt in and out any year. For major deduction remain:
- Mortgage
- Charitable
- State and Local taxes
- Child tax credit
According to one economic expert I talked to: "This plan would be huge. It would be 4% of GDP. By comparison, GWB tax cut was 1.3% of GDP. Reagan’s was 1.9% of GDP."