House Budget Committee Chairman Paul Ryan will call for cutting the top U.S. income-tax rate to 25 percent from the current 35 percent as part of the GOP budget proposal for 2013.
The Wisconsin Republican's plan, to be unveiled on Tuesday, would consolidate the number of individual income tax brackets to two, from the current six, with the lower rate set at 10 percent.
It would reduce the top corporate tax rate to 25 percent, from 35 percent, while eliminating the alternative-minimum tax intended to make sure that individuals pay at least some tax, according to documents provided by Ryan’s office.
Ryan has said he will seek cuts to federal programs such as Medicare to help reduce the government’s budget deficit. His budget plan last year sought to privatize the Medicare healthcare plan for the elderly.
Maryland Rep. Chris Van Hollen, the top Democrat on the House Budget Committee, said he was “very surprised” that Republicans would revive last year’s tax proposal because “both the politics and the math hurt them.”
“The reality is you’re talking about a tax cut of several hundred thousand dollars for a millionaire and a tax increase on middle-income taxpayers,” he said in an interview.
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