Jindal Plan Would Eliminate Taxes for Corporations, Raise Taxes on Low-Income Families
October 7, 2015Print
By Kate Skochdopole
Unlike his opponent Donald Trump (R), who recently announced plans that aim to decrease the number of Americans who owe federal income taxes, Jindal calls for all Americans to pay.
He proposed a 2 percent income tax on the poorest working families and the elimination of all tax credits and deductions except for the Earned Income Tax Credit (EITC), a common way low-income families end up owing no income tax. However, Jindal did not elaborate on how the EITC would be administered under his plan, and it is unclear if the tax credit would continue to be refundable.
In his announcement of the plan, Jindal said his proposal would “require that every American has some skin in this game,” echoing sentiments shared by former presidential hopeful Mitt Romney. But low-income families who don’t owe federal income taxes already have skin in the game – they still pay state taxes and have payroll tax taken from each paycheck. Those earning the least also pay a higher percentage of their incomes on common sales and gas taxes.
Although keeping the EITC is a good way to help some low-income families, when coupled with a rise in income tax, the net effect is likely hurtful for those struggling to make ends meet.