House Republicans’ 2013 Budget Proposal

Republicans in the House want to reduce rates and the number of income tax brackets in their 2013 budget proposal. They want to have two brackets instead of six and set the rates at 25% and 10%. The current top rate is 35%.

House Budget Committee Chairman Paul Ryan also plans to eliminate the alternative minimum tax and reduce the corporate tax rate from 35% to 25%. The plan may also revive Republicans’ efforts to overhaul Medicare. Democrats criticize how Republicans are trying to reduce Medicare to get tax cuts for the wealthy.

There is a dispute amongst the party members over funding levels for federal agencies next year. Some of the Republicans want to make additional cuts even if it upsets the Budget Control Act – a budget deal that Congress struck with the Obama administration last year. Democrats urge the Republican leaders to stick to the deal so that other deals can be negotiated in the future.

See Brian Faler, House Republican Budget Plan to Call for Overhaul of Tax Code, Bloomberg, Mar. 20, 2012. 

Special thanks to David S. Luber (Attorney at law, Florida Probate Attorney Wills and Estates Law Firm) for bringing this article to my attention.