Ron Paul Unveils Tax and Budget Plan

Last week, presidential candidate Rep. Ron Paul (R-TX) unveiled a tax and budget plan. Titled “Plan to Restore America,” reduces projected federal spending from $16.4 trillion over the 2013-16 period to $11.6 trillion, a reduction of approximately $1 trillion per year. How a President Paul would achieve those savings has been the subject of news coverage since he unveiled it, but his plan also includes a tax component.

The tax plan:

• Extend the 2001 and 2003 “Bush” tax cuts for all earners
• Continue to index the Alternative Minimum Tax to inflation
• Eliminate taxes on capital gains and dividends
• Eliminate the estate and gift tax
• Reduce the corporate income tax to a top rate of 15 percent
• Allow tax-free repatriation of overseas capital

All told, Paul estimates that instead of the federal government collecting an estimated $14.3 trillion over the 2013-16 period, it would under his plan collect $11.1 trillion. Paul balances the budget by 2015.