Ezrea Klein of the Washington Post recently reported on a bipartisan tax reform effort, the first in 25 years, put forth by Senator Ron Wyden (D-Ore.) and Senator Judge Gregg, the ranking Republican on the Budget Committee. The proposed plan reduces the number of individual income brackets to three, eliminates the alternative minimum tax, increases the standard deduction available to all individual taxpayers, and replaces the six corporate rates and eight corporate brackets with a flat corporate tax of 24 percent. Even though the average taxpayer, whether corporate or individual, will pay less under the Wyden-Gregg plan, this does not mean that the Internal Revenue Code would bring in less money. Instead, the plan manages to cut taxes while also maintaining a steady revenue.
Posted by Jenny Robertson, Associate Editor, Wealth Strategies Journal.
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