GOP tax bill: Here is a look at the new brackets
Rep. Erik Paulsen (R-MN) on the details in the GOP tax preform plan.
House Republicans are attempting the biggest transformation of the U.S. tax code in more than 30 years. The new bill aims to chop the corporate tax rate from 35% to 20%, as well as trim income tax brackets from seven to four, with the top rate of 39.6% to remain intact.
Currently, there are seven tax brackets: 10%, 15%, 25%, 28%, 33%, and 39.6%.
Here’s a look at the four new proposed tax brackets.
12%: This new rate applies to single filers starting at $12,000 up to $45,000 and married joint filers after the $24,000 deduction up to $90,000.
25%: This rate starts at $45,000 for single filers and $90,000 for married joint filers.
35%: This rate starts at $200,000 for single filers and $260,000 for married joint filers.
39.6%: This rate starts at $500,000 for single filers and one million plus for married couples.