Republicans Propose New Tax Code with Lower Rates
On March 20, Representative Paul Ryan (R-WI), chairman of the House Budget Committee, introduced his Chairman's Mark proposing a new budget for fiscal year (FY) 2013 and setting forth appropriate budgetary levels for fiscal years 2014 through 2022. Among other things, Ryan's budget would:
a.consolidate the existing six individual income tax brackets to two (10% and 25%),
b.reduce the corporate tax rate to 25%,
c.repeal the alternative minimum tax,
d.shift from a worldwide tax system to a territorial regime,
e.drastically reform Medicare and Medicaid, and
repeal the 2010 health care reform legislation.
According to Ways and Means Committee Chairman Dave Camp (D-MI), Ryan's new budget “reforms our outdated and burdensome tax code to unleash innovation and investment.” However, Ways and Means Committee Ranking Member Sander Levin (D-MI) countered that the budget “would end up showering benefits on the very wealthy and soaking the middle class.” The House Budget Committee is scheduled to mark up the proposal on March 21.
This was reported by RIA 3/21/12