GOP presidential candidate Louisiana Gov. Bobby Jindal aims to eliminate the corporate tax, an issue he addressed as he unveiled his tax plan Wednesday afternoon on a call with reporters where Jindal argued his plan simplifies tax code.
Jindal’s tax plan only has three tax brackets – two percent, 10 percent and 25 percent.
“Most Americans will be in the 10 percent bracket,” he told reporters. He went on to explain that a couple making $150,000 is now in the 25 percent tax bracket, but under his plan would drop to the 10 percent bracket.
According to Jindal’s plan, individuals making less than $10,000 will be in the two percent bracket, those making more than $10,000 but less than $90,000 will be in the 10 percent bracket, and everyone else will be in the 25 percent bracket.
Those who are married have a slight shift in their brackets: Couples making under $20,000 a year will be in the two percent bracket, where as couples making between $20,001 and $180,000 will be in the 10 percent bracket. Lastly, couples making more than $180,000 will pay 25 percent in taxes.
Jindal said his plan “eliminates the estate tax – death tax, the marriage penalty and the gift tax, and the alternative minimum tax.”
“I think my plan is best,” he touted, referencing that other GOP candidates have revealed their tax plans.
He said his plan has three key differences from fellow Republican candidates.
“Most Republican plans brag about the fact that they allow as many as half of all Americans pay zero federal taxes. Jeb and Trump both have said that. I think that’s a mistake,” Jindal said. “I think everybody should pay at least something.”
“We’ve got to this point where too many Americans believe money just grows on trees in Washington,” he said.
We’re only asking two percent from the bottom bracket. I think that may be the most important two percent in the whole plan. It reestablishes the idea that in America everybody is expected to help row the boat. Some people may have a bigger ore, some may have a smaller ore, but you keep your ore in the water along with everybody else.
The second way Jindal’s plan differs from other Republicans is that it eliminates the corporate tax in America.
The U.S. has the highest corporate tax rate than any other developed countries. Jindal says this move will create jobs and end wealth incentives for companies investing outside this country.
“We need to be willing to be bold,” he said of eliminating the corporate tax rate.
We’ve done various analyses. We show that for example in a 10 year period the GDP would grow 14.4 percent on top of the current base growth projection rate with just my tax changes. We show that nearly six million jobs would be added to the economy, wages would grow by 8. 7 percent – just as an example of the positive outcomes from changing our taxes.
Jindal also says his plan is different because it “reduces the amount of money the federal government is going to be able to spend.”
“I want to shrink the size of federal government,” he stated. Jindal said he cut the budget in Louisiana by 26 percent in eight years.
“We either grow the American economy or the government economy,” he challenged.
“Independence not dependence is the root of the American dream,” Jindal added.