Tags: GOP | House | Unveil | Tax Code | Reform

House GOP To Unveil Tax Code Reform Plan

House GOP To Unveil Tax Code Reform Plan
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By    |   Friday, 24 June 2016 09:00 AM

House Republicans are set to unveil a tax code reform plan that would cut the corporate tax rate from 35 percent to 20 percent, according to Politico.

The plan lowers the top individual income tax rate to a top rate of 33 percent, not 25 percent as Republicans once proposed. The current top rate is 39.6 percent.

The plan aims at a consumption tax, in which people are taxed on what they spend instead of what they earn.

"Our blueprint will deliver a tax code built for growth — the growth of jobs, the growth of paychecks and the growth of our economy," Kevin Brady, chairman of the House Ways and Means committee said, reports Politico.

Presumptive GOP presidential nominee Donald Trump has offered a different plan, but a House Republican aide said he had "a fairly high level of confidence" that he would approve most of the plans in the proposal.

The plan could involve some risk for Republicans ahead of the November elections, since it cuts some popular tax breaks, including nearly all itemized deductions. The report aims at 5 percent of people using itemized deductions. About one-third of people use them now.

The left-leaning group Americans for Tax Fairness slammed the plan, saying in a statement, "House Speaker Paul Ryan and Donald Trump may agree on some issues, but they are united when it comes to giving huge tax breaks to the wealthy and big corporations."

The plan would reduce the amount of individual tax brackets from seven to three, offer cuts to capital gains and dividends, and expand the standard deduction and child tax credit.

The plan does not cut the corporate tax rate to 25 percent as Republicans have long promised, according to Politico. A Republican aide said, "The pressures on our companies have become stronger and stronger and I think there is a view among House Republicans that 25 percent is not good enough anymore."

The plan also seeks to cut government's attempts to tax overseas profits, capping them at 8.75 percent.

Likely Democratic presidential nominee Hillary Clinton said the U.S. tax code is "riddled with scams, loopholes, and other special breaks" and if Congress does not close tax loopholes that benefit the wealthy, she will as the Treasury Department to look into doing so if she becomes president, according to CNBC.

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House Republicans are set to unveil a tax code reform plan that would cut the corporate tax rate from 35 percent to 20 percent, according to Politico.
GOP, House, Unveil, Tax Code, Reform
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2016-00-24
Friday, 24 June 2016 09:00 AM
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