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House GOP budget to slash taxes
By Erik Wasson and Bernie Becker - 03/19/12 06:48 PM ET
House Republicans will roll out a fiscal 2013 budget on Tuesday that will slash tax rates for both corporations and individuals, setting a marker for future negotiations with Democrats on taxes and other fiscal matters.
The plan from House Budget Committee Chairman Paul Ryan (R-Wis.) would collapse the current system of six tax brackets for individuals into two marginal rates: 10 percent and 25 percent, according to GOP aides. The proposal would also lower the top corporate tax rate to 25 percent, and scrap the Alternative Minimum Tax.
In all, Ryan’s 2013 contains more tax reform details than his 2012 effort, though both frameworks call for lowering the top individual and corporate rates to 25 percent from their current 35 percent. The 2013 plan also does not detail the income thresholds for the two proposed individual tax brackets.
Still, the House GOP proposal lays out a clearer vision of how Republicans on Capitol Hill want to overhaul the tax code, an idea that has been embraced by officials and political figures on both sides of the aisle.
The Obama administration released its own framework for revamping the corporate tax system last month, and major Republican presidential candidates have also released tax plans.
The details in the House GOP’s 2013 budget were first reported by The Wall Street Journal.
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