Conservatives lament retention of top tax rate in GOP plan, but the wealthy still reap big benefits

//Conservatives lament retention of top tax rate in GOP plan, but the wealthy still reap big benefits

Conservatives lament retention of top tax rate in GOP plan, but the wealthy still reap big benefits

The decision by House Republican leaders to retain the current top individual tax rate disappointed conservatives who have been gunning for it ever since the 39.6% bracket was reinstated under the Obama administration four years ago.

But while Republicans backtracked on a vow to reduce the rate to 35%, experts said there is still plenty in the party’s tax overhaul bill — including a repeal of the estate and alternative minimum taxes — that would make the richest Americans the overall winners.

“The wealthy are going to do fine,” said Maya MacGuineas, president of the nonpartisan Committee for a Responsible Federal Budget. “This is not even asking them to pay more. This is just slightly reducing the tax cut they’re already in line for under this plan.”

And thanks to another new perk in the bill, many wealthy Americans may find ways to avoid the top rate anyway by funneling their income through business entities. The bill is expected to lower to 25% the top rate paid by so-called pass-through businesses, whose owners file taxes as individuals. Currently, such businesses are taxed at the same rate as individuals, topping at 39.6%

By | 2017-11-02T07:27:33+00:00 November 2nd, 2017|Conservatism and the GOP|

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