US unveils tax reform legislation

Baku. 3 November. REPORT.AZ/ Republican Party (GOP) in the U.S has unveiled the long awaited tax reform legislation for public.

Report informs referring to Bloomberg, Tax code entitled Tax Cuts and Jobs Act seeks the biggest transformation of tax code in more than 30 years.

As it was predicted the plan calls for chopping the corporate tax rate to 20% from 35% and maintains a 39% rate for high income earners. This tax rate will relate to those whose annual income amounts to $ 500,000 and married taxpayers with earnings of 1 million dollars.

Earnings up to $ 45,000 (married $ 90,000) would be taxed in the 12 %, earnings with $ 45,001 to $ 200,000 (married 260,000) would fall in the 25 percent bracket and earnings $ 200,000 to $ 500,000 million (for married $1 million) would be taxed at the 35 percent rate.

Speaker of the United States House of Representatives Paul Ryan said the main target of new tax reform is to support middle class people.

“Tax Cuts and Jobs Act would save the average family of four $ 1,182 a year on their taxes. It will be important help for many families.”