House Speaker Paul Ryan, R-Wis., confirmed in an October 20 interview that Republican tax reform legislation will propose a fourth, top rate above 35 percent for higher-income taxpayers. Initially, the Trump/GOP unified tax reform framework released last month mentioned the possibility of a fourth rate, while initially proposing three rates: 12, 25, and 35 percent.
Fourth, Top Rate
According to Ryan, the fourth rate is intended to curb potential tax benefits for the wealthy. “That’s why we’re introducing the fourth bracket. So that high-income earners do not see a big rate cut. So that those resources go to the middle class,” he said. Ryan stated in the interview that President Trump has been “very insistent” that a fourth bracket be included.
By Jessica Jeane, Wolters Kluwer News Staff