For those Americans who will still pay the income tax, the tax rates will go from the current seven brackets to four simpler, fairer brackets that eliminate the marriage penalty and the AMT while providing the lowest tax rate since before World War II:
[TABLE]
[TR="class: even"]
[TH] Income Tax Rate[/TH]
[TH] Long Term Cap Gains/ Dividends Rate[/TH]
[TH] Single Filers[/TH]
[TH] Married Filers[/TH]
[TH] Heads of Household[/TH]
[/TR]
[TR="class: odd"]
[TD] 0%[/TD]
[TD] 0%[/TD]
[TD] $0 to $25,000[/TD]
[TD] $0 to $50,000[/TD]
[TD] $0 to $37,500[/TD]
[/TR]
[TR="class: even"]
[TD] 10%[/TD]
[TD] 0%[/TD]
[TD] $25,001 to $50,000[/TD]
[TD] $50,001 to $100,000[/TD]
[TD] $37,501 to $75,000[/TD]
[/TR]
[TR="class: odd"]
[TD] 20%[/TD]
[TD] 15%[/TD]
[TD] $50,001 to $150,000[/TD]
[TD] $100,001 to $300,000[/TD]
[TD] $75,001 to $225,000[/TD]
[/TR]
[TR="class: even"]
[TD] 25%[/TD]
[TD] 20%[/TD]
[TD] $150,001 and up[/TD]
[TD] $300,001 and up[/TD]
[TD] $225,001 and up[/TD]
[/TR]
[/TABLE]
With this huge reduction in rates, many of the current exemptions and deductions will become unnecessary or redundant. Those within the 10% bracket will keep all or most of their current deductions. Those within the 20% bracket will keep more than half of their current deductions. Those within the 25% bracket will keep fewer deductions. Charitable giving and mortgage interest deductions will remain unchanged for all taxpayers.
Simplifying the tax code and cutting every American’s taxes will boost consumer spending, encourage savings and investment, and maximize economic growth.
