Rubio tax plan would spur economic growth: Study

A tax reform plan released last week by a potential GOP presidential hopeful would eventually raise $94 billion a year in revenue, according to a new analysis from a free-market group.


The Tax Foundation said the proposal from Sens. Mike LeeMichael (Mike) Shumway LeeTed Cruz won't wear mask to speak to reporters at Capitol Michigan Republican isolating after positive coronavirus test Barrett fight puts focus on abortion in 2020 election MORE (R-Utah) and Marco RubioMarco Antonio RubioTrump remarks put pressure on Barr Owners of meatpacker JBS to pay 0M fine over foreign bribery charges Questions raised about conflicts of interest around Biden son-in-law MORE (R-Fla.), who has said he's considering a White House run, would lose $1.7 trillion in revenue over the first decade. 

But the group said that the plan – which would slash capital gains taxes and allow businesses to write off investments immediately – would spark 15 percent economic growth over the long run, leading to the $94 billion a year in extra revenue.

The plan would lose $414 billion a year when scored on a static basis – that is, not trying to take into account economic growth, the Tax Foundation said. 

Democrats have long been skeptical of the sort of "dynamic" scoring the Tax Foundation used to score the Rubio-Lee plan. 

Other groups, like the Tax Policy Center, have also been far less optimistic about the plan. The Tax Policy Center's Howard Gleckman has written that Rubio and Lee's framework would add trillions of dollars to the deficit over the next decade.