WASHINGTON Feb 24 A tax reform package due to
be unveiled this week by U.S. House Republicans would slash the
top income tax rate to 25 percent from 39.6 percent and levy a
surtax on some of the most affluent households, the Washington
Post reported on Monday.
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 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 manufacturers.
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
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
The congressional analysis found that there would be little
change in most Americans' tax bills under the plan.
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.