3 Need-To-Knows (For Now) Of The Gop Tax Plan

3 Need-To-Knows (For Now) Of The Gop Tax Plan

- Walid Petiri

In late September the White House’s long-awaited tax plan was finally revealed – or at least outlined via a 9-page framework memorandum. The framework was created by members of the (mostly Republican) congressional “Big Six” (not the heads of the prominent 1960s civil rights organizations): House Speaker Paul D. Ryan of Wisconsin, House Ways and Means chair Kevin Brady of Texas, Senate Majority Leader Mitch McConnell of Kentucky, Senate Finance Committee chair Orrin G. Hatch of Utah, Treasury Department Secretary Steven Mnuchin and National Economic Council Director Gary Cohn.

The GOP framework proposal focuses on three classifications of taxes: individual, business and international.

Individual Taxes

• Rate structure and standard deduction. The plan seeks to consolidate the seven current tax brackets into three: 12%, 25%, and 35%. Income levels at which each bracket would take effect is still unknown. They are also proposing a $15000 standard deduction for single tax filers and a $30000 deduction for married filers. The head of household filing status would be repealed.