View Authors 22 March 2012
On March 20, House Budget Chairman Paul Ryan (R-WI) released the House Republican’s proposed blueprint for the fiscal 2013 federal budget. The proposal, which recommends cuts in government spending, includes a template for reforming the tax code. The blueprint contemplates a simpler individual income tax code, with only two tax brackets set at 10 and 25 percent, and would repeal the alternative minimum tax. The budget also proposes lowering the corporate tax rate to 25 percent, and would shift the U.S. from a worldwide system of taxation to a territorial one. The budget also proposes expanding the tax base by enacting unspecified base broadening measures for both individual and corporate taxpayers, with the stated goal of maintaining government revenue in the range of 18 to 19 percent of GDP, which is consistent with the long term historic average.