House Speaker Paul Ryan is slated to release the Republican Tax Reform Plan on Friday. The plan is part of the re-election campaign this year, and will lower the top income tax rate to 33% and cut corporate tax rates, too.
The plan will be officially revealed this morning at the U.S. Capitol.
The plan is the sixth plank in Ryan’s plan to unify Republicans. Issues that have been discussed so far are said to be common ground between Ryan and Donald Trump, the presumptive Republican nominee.
Trump has been quoted as having numerous views on taxes, stating in May that he is open to a tax hike for the rich. Prior proposals from the billionaire have called for reduced taxes across the board for all income levels.
Democrats are pushing for higher tax rates on America’s wealthiest individuals. Hillary Clinton, the presumptive Democratic nominee, has called for tax hikes on the wealthy. Under the proposed Republican plan, the seven tax brackets on individuals would be reduced to three, with top income earners benefiting from a 33% tax rate instead of a 39.6% tax rate.
Small businesses organized as sole proprietorships would have a maximum tax rate of 25% under the rule.
Corporate tax rates would be reduced from 35% to 20% in an effort to shift to “territorial” taxation.