House Budget Chairman Paul Ryan plans to unveil his spending plan Tuesday morning during a Capitol Hill news conference and follow it up later with a speech at the American Enterprise Institute. The proposal would replace the current tax structure’s six brackets with just two tax levels, a 10-percent marginal tax rate for lower income earners and 25-percent for upper income earners.
That would be a reduction from a top marginal rate of 35 percent under the current structure. The plan would also lower the top corporate income tax rate to 25 percent and virtually eliminate taxes on corporate profits brought back from overseas. And it would do away with the Alternative Minimum Tax, which was designed to hit the wealthiest taxpayers but increasingly also affects upper-middle-income earners.