Part of a Series
Restore the progressivity of the code by reducing the number of income tax brackets from six to three at the rates of 15 percent, 25 percent, and 39.6 percent; and by removing the employee component of the Social Security payroll tax, immediately reducing by 6.2 percent the tax rate all Americans pay on the first $90,000 of earnings. The reform provides a substantial tax cut to about 70 percent of taxpayers earning under $200,000. Higher income individuals, who have disproportionately received the benefits of the Bush tax changes, would see an increase.
For more on the Center’s policies on tax reform, please see:
- Create a Fair and Simple Tax Code: 15 New Ideas
- Responsible Investment: A Budget and Fiscal Policy Plan for Progressive Growth by David Madland and John Irons