The plan by Representative Dave Camp, chairman of the tax-writing
House of Representatives Ways and Means Committee, would also reduce
the seven existing U.S. tax brackets to two, which would be set at
10 percent and 25 percent, according to the Post.
The plan, expected to be floated on Wednesday, would impose a 10
percent surtax on certain kinds of earned income over about $450,000
a year, the Post said, adding that the levy would hit many salaried
professionals like lawyers and accountants, but not farmers and
Citing an analysis by the congressional Joint Committee on Taxation,
the Post said the plan did not indicate which of the many tax breaks
would be sacrificed to make possible the lower rates.
The newspaper said the analysis did show that the plan would achieve
some of Camp's goals for a simpler code that lowers rates while
collecting the same amount of revenue.
"Not only did we meet that goal, but 99 percent of all filers are
going to be subject to a rate of 25 percent or less," The Post
quoted a Republican aide familiar with the plan as saying.
The congressional analysis found that there would be little change
in most Americans' tax bills under the plan.
[to top of second column]
Camp has said he will release a tax-overhaul draft this week. It
comes as hopes for comprehensive U.S. tax code reform before 2015
have all but vanished.
The Michigan lawmaker once promised that a tax overhaul would pass
the Ways and Means Committee by 2013, but no bill was introduced.
Congress is still deeply divided over fiscal policy.
(Writing by Peter Cooney; editing by Jan Paschal)
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