GOP 2016 hopeful John Kasich released his tax plan Thursday. He promises broad tax cuts, a reduction in the size of government and a balanced federal budget within eight years.
Four of the seven tax brackets will be eliminated, bringing the top income rate down from 39.6 percent to 28 percent. The corporate tax will be reduced to 25 percent, a 10 percent cut, the long-term capital gains rate will be slashed to 15 percent and the estate tax will be eliminated. It will also increase the earned income tax credit by 10 percent.
Kasich, who formerly served as the chairman of House Ways and Means Committee for six years, says he will freeze non-defense discretionary spending at $593 billion annually, while increasing military spending by 17 percent.
The campaign says Congress will receive a comprehensive plan within his first 100 days in office.
The Ohio governor is calling for a shift in power back to the states in areas including education, transportation and Medicaid. Block grants and the revenue from the federal gas tax will be provided for a more localized approach, resulting in a major downsize of federal agencies.
A one-year restriction on new major rules and regulations will also be put in place.
Democrats are bashing the plan, saying it will have detrimental effects on the government’s functionality.
“Kasich’s ‘plan’ is simply unserious,” TJ Helmstetter, a spokesman for the DNC, says in a statement. “It would not balance the budget, but it would choke off critical programs that people depend on and cripple the federal government’s ability to function. It would either explode the deficit or destroy the economy.”
The Republican candidate will unveil separate plans addressing the Affordable Care Act and Social Security.
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