WASHINGTON (AP) — The House GOP tax plan would require some upper-income taxpayers to pay a higher top rate under a new rate structure.
The result would be to increase the tax burden on those subject to a lower rate under the current system.
Families earning more than $260,000 now have a top rate of 33 percent. They’d get kicked up to the 35 percent bracket. At present, the 35 percent rate starts at $416,700 for married couples.
High-bracket earners, especially in high-tax states, would lose the benefit of deducting state income taxes.
But middle-class earners would benefit. That’s because the bill would nearly double the standard deduction to $24,000 for couples and an increase in the per-child tax credit from $1,000 to $1,600.
And the child credit would be available to households earning up to $230,000, more than double the current income limit. A $300 credit would apply to each parent and nonchild dependent.
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