More Details On GOP Budget Alternative – 10% Tax Rate

Following up on Obama’s criticism that they’ve become the “Party of No,” the GOP has released its 2010 Budget alternative plan. The details are thin at the moment as it’s still rolling out, but take a look at the highlights including a drastically cut tax rate: 10% for the first $100K.

The plan unveiled Wednesday by Wisconsin GOP Rep. Paul Ryan also freezes overall spending on domestic programs and repeals most of the spending in President Barack Obama’s recently passed economic stimulus bill.

Despite the spending reductions, the plan projects permanent deficits exceeding $500 billion into the future, fueled largely by big tax cuts.

The GOP plan would offer couples the option of a 10 percent rate on the first $100,000 of income, with a 25 percent rate thereafter.

Let me see which is lower: 10% or 28% (the rate when first hitting $100K). Well the calculator says 10%. More details to follow…

Wall Street Journal provides an in-depth review of the differences.