Republicans Propose New Tax Code with Lower Rates
GOP budget proposal would reduce top tax rate for businesses and individuals to 25% 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 According to Ways and Means Committee Chairman Dave Camp (D-MI), Ryan's new budget “reforms our outdated and burdensome tax code to unleash innovation and investment.”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...