Republicans’ tax reform bill will include a fourth tax bracket for the highest-earning Americans, a move that will likely satisfy Democrats but could anger a number of conservatives.
“The fourth bracket that the president and others are talking about that we’re going to do, we’re working on those numbers,” House Speaker Paul Ryan said Friday on “CBS This Morning.” He added that they do not have a specific rate set for the fourth bracket, which should get “finalized in a number of days.”
The White House released a brief outline of its tax reform package in late September. The administration wants to cut the corporate tax rate from 35 to 20 percent, and to shrink the number of individual tax brackets from seven down to three tiers at 12 percent, 25 percent and 35 percent. The White House included in its outline the possibility of a fourth bracket, which Ryan confirmed Friday morning.
Other features of the plan that voters indicated they would support include a one-time repatriation tax for income held overseas and a repeal of the estate tax.
Including a fourth bracket on high-income Americans is likely a sell to Democrats, who have said they will not vote for a tax reform bill that gives tax cuts to the wealthy.