House Republicans would need to eliminate about $5.7 trillion in tax breaks over the next decade to meet the targets in their budget, the nonpartisan Tax Policy Center said today.
The budget, which will be on the House floor next week, calls for reducing the corporate tax rate to 25 percent from 35 percent and repealing the alternative minimum tax. It aims for a top individual rate of 25 percent, down from 39.6 percent.
Achieving those goals would be particularly hard if Republicans also attempt to keep the current progressiveness of the tax code, because the rate cuts in the plan provide most of their benefits to top earners. The same problem plagued Republican presidential candidate Mitt Romney’s call for tax rate cuts during the 2012 campaign.
Under the budget, 55 percent of the tax cuts would go to the top 1 percent of the income distribution, according to the center. Tax breaks are distributed more evenly across the population.
The budget, written by Rep. Paul Ryan of Wisconsin, doesn’t attempt to detail how Republicans would pay for the rate cuts. The House Ways and Means Committee, on which Ryan serves, has that task and plans to pass a tax code overhaul this year.