The Deficit Commission Wants To Cut Your Tax Rate, But Kill Most Exemptions

You read that right, the deficit commission proposal would reduce and simplify personal tax rates. Just three brackets: 12%, 22% and 28%.

The Simpson-Bowles plan would raise revenue, however, by reducing exemptions on both end of the spectrum. Investors would lose exemptions for capital gains and dividends and interest from muni bonds.

Note: Another tax increase not included in this chart is the increased payroll tax for Social Security.

It offers a similar proposal for corporate taxes, calling for a uniform tax rate somewhere between 23% and 29%.

At the same time it would cut all corporate subsidies and end tax breaks for foreign corporations.

More from the report: 6 immediate spending cuts >