Louisiana Gov. Bobby Jindal proposed his national tax plan Wednesday, which would eliminate the corporate, estate and alternative minimum tax while requiring all Americans to pay some federal income tax.
The 2016 hopeful would eliminate four of the seven income brackets — the lowest being 2 percent, the next tier standing at 10 percent, and the highest at 25 percent.
According to the Tax Policy Center, 45.3 percent of households in the U.S. currently don’t pay any federal income tax.
“We simply must require that every American has some skin in this game,” he said. “If we have generations of Americans who never pay any taxes, it will be very easy for them to turn a blind eye to absurd government spending and to continue to allow our government to bankrupt our nation.”
The approach is very different from his rivals, whose plans increase the number of people who pay no federal income tax.
The governor, who has been lagging in the polls, says his proposal would cut federal revenue by 22 percent, grow the GDP by 14.4 percent and increase wages by 8.7 percent.
The plan also eliminates the personal exemption, the standard deduction and all itemized deductions with the exception of charitable contributions and the earned income tax credit, the mortgage interest deduction. It would also eliminate the alternative minimum tax.
“It reestablishes the idea that in America everyone is expected to help row the boat,” Jindal said. “Now some people may have a bigger oar and some smaller but you keep your oar in the water along with everyone else.”