The House GOP blueprint reduces the number of tax rates from six to three. It consolidates or eliminates most tax breaks. And it promises that the revised tax code will be simple enough that most Americans can file their taxes on a postcard.It also cuts taxes so people have more money in their pockets.
The new individual income tax rates would be 12%, 25% and 33%, well below the 39.6% top rate today.
And while the bottom 12% rate is higher than today's 10% bracket, a much higher standard deduction would mean that low-income taxpayers would pay lower taxes than they do currently, the blueprint promises. (No objective outside analyses of the plan have been done yet.)So that would mean they would get a bigger tax refund if I read that right. More money in the pocket means more money to pump into the economy. This part is especially nice.
The House GOP plan would cut taxes on dividends and interest earned from stocks and mutual funds. That would result in a top effective rate of either 6%, 12.5% or 16.5% depending on one's tax bracket.In other words if you are a small/starting investor you would see cap gains and dividends slashed by double figures. I really don't care about the 16.5% for the Mitt Romneys of the world so if they keep that at 20% and it wouldn't bother me. However, paying 12% on all cap gains and dividends would be outstanding. No more hoarding losses or other mess to reduce the amount that the Feds take out of my pocket.