| Well, at this stage, there is nothing concrete as far as any agreements being made on any tax rates. However, the following current 6 tax bracket rate tier system would be simplified into 3 tax rate brackets, and word is that the commission is proposing 12%, 22% and 28%.
Along with these proposals, it appears that the personal exemption and itemized deductions phaseouts would be repealed for the high taxpayers. That is the good news for high income taxpayers, but some itemized deductions would be eliminated completely! There is considerable debate on eliminating the mortgage interest deduction, but there is fierce opposition on this item, so other deductions would have to be considered for elimination.
The sacred cow of Earned Income Tax Credit and Child Care Credit would be maintained it would seem in order to garner support from the Democratic Lobby whilst the GOP lobby would need to appeased by lowering the highest tax rate and simplifying the tax code into fewer tax brackets.
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