Income-tax brackets in combined GOP bill

New rates contain an unpleasant surprise for married couples who make between $600,000 and $1 million

Dec 15, 2017 @ 4:54 pm

By Bloomberg News

Last-minute changes to the Republican tax bill contain an unpleasant surprise for married couples who make between $600,000 and $1 million: They won't be getting as big a tax cut as lawmakers planned earlier.

The final bill would include those households in the highest individual income-tax bracket, which would pay a marginal rate of 37%, according to a summary of the bill's changes obtained by Bloomberg News, as well as a person familiar with the bill's contents.

Here are the brackets, as confirmed by that person, who asked not to be named because the details haven't been publicly released:

For joint filers:

10%: $0 to $19,050

12%: $19,050 to $77,400

22%: $77,400 to $165,000

24%: $165,000 to $315,000

32%: $315,000 to $400,000

35%: $400,000 to $600,000

37%: $600,000 and above

For single filers:

10%: $0 to $9,525

12%: $9,525 to $38,700

22%: $38,700 to $70,000

24%: $70,000 to $160,000

32%: $160,000 to $200,000

35%: $200,000 to $500,000

37%: $500,000 and above

In earlier versions, both House and Senate bills would have included households with income between $600,000 and $1 million in a 35% tax bracket.

Still, the final legislation would provide a cut for those households relative to current law — they currently face a top rate of 39.6%.

Meanwhile, couples earning more than $1 million would do far better — their top rate would move down to 37% from 38.5% in the Senate's version and 39.6% in the House's.

The new individual rates and brackets would be set to expire at the end of 2025, unless a future Congress chooses to extend them.

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