WASHINGTON — Defending his tax plan on Wednesday, Republican presidential candidate Marco Rubio said an expanded child-care tax credit and reforms in the corporate tax code would energize the economy.
The Florida senator’s plan would create a $2,500 child tax credit and a refundable personal credit to replace standard deductions and personal exemptions.
“These are America’s future taxpayers,” Rubio said. “And it is important for families in the 21st century to keep more of their money.”
Rubio spoke at the conservative Heritage Foundation in Washington, along with Republican Sen. Mike Lee of Utah, who is co-sponsoring the plan.
The duo’s discussion took place on the annual tax-filing deadline day for Americans.
Fellow Republicans have criticized the plan because they do not believe it goes far enough. Democrats assert further tax credits will deepen the deficit.
“We want our economy to be dynamic,” said Rubio. “We want America to be the single best place in the world to create jobs.”
Rubio launched his presidential campaign on Monday. Tax reform is one of his major platform planks.
The current tax system is too complicated, Rubio and Lee said, putting too much burden on corporate taxes and making the United States less competitive. The proposal cuts the corporate tax rate from 35 percent to 25 percent.
“Ten years or 15 years ago people could save for retirement and their children’s college expense,” said Rubio, “now the same people with same job are [looking to live] paycheck to paycheck.”
According to Lee, the plan will also benefit middle-income Americans who are in business.
The tax reform plan aims to cut rates on business income and eliminate taxes on estates and capital gains.
Not everyone in the audience was convinced.
“Stopping double taxation on corporate dividends is a very good idea,” said Joel C. Mandelman, an Arlington, Va.-based attorney. “Abolishing the deduction for state and local income and property taxes, I think it is a very bad idea and it will hurt middle class taxpayers.”
Rubio also uses the speech to campaign against President Barack Obama. “America is not in decline,” Rubio said. “We just happened to have a period of time where we have a bad president.”
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