Representitive Dave Camp Pushes to Lower Top Tax Tiers to 25 percent

March 18th, 2011 Brock Hailes Leave a comment Go to comments

Representative Dave Camp, chairman of tax-writing Ways and Means Committee expressed on Thursday his belief that lowering the top corporate and individual tax rates could create more opportunities for families and employers of all sizes.

Camp Hopes for Rates Closer to Those of Major U.S. Trading Partners

Currently, major U.S. trading partners pay tax rates in the ballpark of 20 percent while U.S. corporations have top tax rates sitting at around 35 percent. Though most corporations don’t actually pay the higher rates because they are given a large number of tax deductions, Camp says a lower rate would make the tax code simpler and easier for corporations to follow.

As for individual tax rates, he felt that the top tiers, which currently sit at 28 percent, 33 percent and 35 percent after the extension Bush-era tax cuts should all be lowered to 25 percent.

Lower Tax Brackets Would Remain the Same

In Camp’s plan, the lower tax brackets, which currently are rest at 10 percent, 15 percent and 25 percent when earning less than $139,000 if married and $83,600 if single, would remain the same.

While Republican ideas fall in line with Camp’s proposal, President Barack Obama is aiming to return top tier tax rates for individuals to 39.6 percent, which is where they sat prior to Bush’s cuts. For companies, Obama does plan to trim the top tax rate from 35 percent, but has not released how low he wants the rate to drop.

Camp and his counterparts in the Senate are just in the beginning phases a series of hearings on tax reform. Since the tax code is both complex and lengthy (currently comprised of over a million words), lawmakers expect an actual tax overhaul to take several years to complete.

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