House Republicans are attempting the biggest transformation of the U.S. tax code in more than 30 years. The new bill aims to chop the corporate tax rate from 35% to 20%, as well as trim income tax brackets from seven to four, with the top rate of 39.6% to remain intact.
Currently, there are seven tax brackets: 10%, 15%, 25%, 28%, 33%, and 39.6%.
Here’s a look at the four new proposed tax brackets.
12%: This new rate applies to single filers starting at $12,000 up to $45,000 and married joint filers after the $24,000 deduction up to $90,000.
25%: This rate starts at $45,000 for single filers and $90,000 for married joint filers.
35%: This rate starts at $200,000 for single filers and $260,000 for married joint filers.
39.6%: This rate starts at $500,000 for single filers and one million plus for married couples.