The Republican Party’s tax reform framework will include a fourth bracket for the United States’ highest-earning individuals, House Speaker Paul Ryan (R-Wis.) said on Friday.
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During an interview on “CBS This Morning,” Speaker Ryan said President Donald Trump has been insistent on reintroducing the fourth bracket in order to make sure it’s the middle class, not the wealthy, who receive the intended benefits from the tax cut package.
“Once we get that [final] budget resolution, that tells us how our numbers will work, then we’ll introduce the bill which will have that fourth bracket, designed to make sure we don’t have a big drop in income tax rates for high-income people,” he said.
During an interview with FOX Business' Maria Bartiromo, Trump confirmed discussions of a fourth bracket, but added he would "rather not" include it.
"The only reason I would have it ... is if, for anyone reason, I feel the middle class is not being properly taken care of."
Ryan declined to give the rate for the final bracket, but noted the highest bracket is currently set at 39.6%. Experts expect the fourth bracket to land somewhere between 35% and 39.6%. The other three tax brackets are set at 12%, 25% and 35% and the Speaker said that the corresponding income levels will be detailed within the coming days.
In order for the House Ways and Means Committee to introduce the tax reform legislation, Congress needs to approve a final version of the fiscal year 2018 budget. Late Thursday, the Senate passed its version of the bill, which differs in some very important ways from the House version.
House sources told Fox News on Thursday that Republicans in the chamber are hoping to advance the tax reform package before Thanksgiving, with a goal of approval before year’s end.