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Here are the new tax brackets in the GOP plan

  • The bill trims down income tax brackets to four from seven.
  • The top rate of 39.6 percent remains.

As part of the tax overhaul, House Republicans are cutting the current income tax brackets to four.

Currently, there are seven tax brackets: 10 percent, 15, percent, 25 percent, 28 percent, 33 percent, 35 percent and 39.6 percent.

Under the House bill, The Tax Cuts and Jobs Act, there will be four: 12 percent, 25 percent, 35 percent and 39.6 percent, according to The Wall Street Journal. The bill roughly doubles the standard deduction to $12,000 for single filers and $24,000 for married couples.

  • The 12 percent bracket: This rate applies to single filers starting at $12,000 up to $45,000. For married joint filers, this applies after the $24,000 deduction up to $90,000.
  • The 25 percent rate: This begins at $45,000 for single filers and $90,000 for joint filers who are married.
  • The 35 percent rate: Single filers reach this bracket at $200,000. This rate applies to married filers at $260,000.
  • The 39.6 percent rate: This rate applies at $500,000 for singles and $1 million for married couples.

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