From TaxVox: Rubio’s ambitious consumption tax would reduce revenue by $6.8 trillion, give most benefits to the highest-income households


February 11, 2016

Senator Marco Rubio would convert the income tax into a progressive consumption tax, an ambitious idea that would eliminate the income tax’s penalty on saving. However, a new Tax Policy Center analysis finds that Rubio’s version would slash federal tax revenues by $6.8 trillion over the next decade with most of the benefits going to high-income households. Unless Rubio offsets those revenue losses with big spending cuts, he’d lose most if not all of the economic benefit of his plan.

Rubio tax plan

Rubio tax plan

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