Beginning next year, other marginal tax rates would be reduced in stages so that by 2006, the lowest rate would be 10 percent, and the top rate would be cut to 33 percent from 39.6 percent. The intermediate marginal rates would also be cut year by year over five years. The 36 percent rate would also be reduced to 33 percent. The 31 percent rate would be cut to 28 percent. And the 28 percent rate would be cut to 25 percent.
Marginal rates are what taxpayers owe on the last dollar of taxable income.
Taxable income is the amount after exemptions and deductions are subtracted. It stands no chance of being enacted. But it could be a starting point for negotiations if the Bush plan becomes bogged down in the Senate. Click here to read more of Congressman Jackson's Issues and Positions.