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.

{mosads}The Tax Foundation said the proposal from Sens. Mike Lee (R-Utah) and Marco Rubio (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.