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Presidential Issues: Taxes


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Governor Lincoln Chafee’s Modest Tax Proposal

October 15, 2015

By Kyle Pomerleau

A few weeks ago, former Governor Lincoln Chafee (D-RI) released a tax plan. The governor’s plan would do three things:

  • Add a new 45 percent tax bracket that applies to income over $750,000.
  • Add a new 25 percent capital gains and dividend tax bracket that applies to taxpayers earning more than $750,000.
  • Increase the personal exemption by $1,000 from the current $4,000 to $5,000, or as much as necessary to make the plan revenue neutral.

The plan is certainly not a major overhaul to the tax code like we are used to from the Republican candidates, but I believe it is a plan worth noting for its simplicity. In fact, its simplicity makes it very clear what Governor Chafee is trying to accomplish: increase the progressivity of the current tax code without raising the overall level of taxes.

Using the Tax Foundation’s Taxes and Growth model, I modeled the three components of the governor’s plan. I found that, indeed, the governor’s plan does precisely what it aims to do.

Read the full article at the Tax Foundation: Governor Lincoln Chafee’s Modest Tax Proposal

Issue Categories : Lincoln Chafee, Taxes