House Budget Committee Chairman Paul Ryan, R-Wis., released the House GOP’s 2013 budget on Tuesday, which lowers tax rates, ends the Alternative Minimum Tax and consolidates the current six individual income brackets into two brackets of 10% and 25%.
Ryan’s budget proposal would also shift from a “worldwide” to a “territorial” tax system that House Ways and Means Committee Chairman Dave Camp, R-Mich., says “puts American companies and their workers on a level playing field with foreign competitors and encourages investment and hiring in the United States.”
Ryan (left) told The Wall Street Journal that while he doesn’t expect the bill “to make law this year,” House GOP members do “expect to give the country an alternative choice for the future. We’re going into this election with a specific plan and showing how we could realize it and get it done.”
Like President Obama’s budget proposal, the GOP plan would cut the corporate tax rate from 35% to 28%.
Other key changes in the GOP budget proposal, The Path to Prosperity, which adopts the tax-writing Ways and Means Committee recommendations, would also repeal President Obama’s health care law, eventually eliminate Fannie Mae and Freddie Mac, and turn Medicaid into a block-grant program.