But the fate of the bill - known for its main sponsors, Lindsey Graham of SC and Bill Cassidy of Louisiana - is in serious doubt after John McCain of Arizona and Rand Paul of Kentucky said they oppose it.
What would the plan do?
The highlights of the plan include the following: Doubling the individual and family standard deduction so more income is in effect tax-free; decreasing tax brackets from seven to three, and setting the tax rates for those brackets at at 12, 25, and 35 percent. Some $3.5 trillion of that is expected to be offset through changes to current tax breaks.
wTrump promised after meeting with lawmakers on Tuesday that "we will cut taxes tremendously for the middle class". 'We'll see what happens, but I hope it's going to be 15 percent. The nonpartisan Tax Policy Center said that plan would lower taxes for all income levels, but most savings would go to the highest-income households. "Poll after poll shows that a strong majority of Americans widely support fixing our broken tax system and lowering tax rates for working families".
It is now up to Congress to turn this tax reform proposal - which opens the door to direct changes to the MID - into legislation. They proposed scrapping the deduction for the amount a taxpayer pays in state and local taxes, which could hurt people in high-tax states including California and NY that tend to vote Democratic. As Axios points out, it allows Republicans, and the President, the ability to accurately claim that this benefits low income families, while still giving a cut to the top bracket.
The plan also calls on the tax committees to eliminate most of the tax credits that businesses now use.
The plan also calls for the end of the alternative minimum tax, a provision that was originally created to ensure that the wealthy would not be able to avoid taxes altogether but which has become a burden on the middle class due to inflation and bracket creep.
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"The goal with all of this is to give our workers the level playing field they deserve", a senior administration official said in a background briefing call on Tuesday.
"This tax plan will be deficit-reducing", said Toomey, who has raised concerns in the past about the effect certain bills would have on the deficit. "Health care involves around one-sixth of the US economy, while taxes covers pretty much everything". The plan would keep tax incentives for mortgage interest and charitable contributions in place and would eliminate the death tax.
The framework is the product of the so-called Big Six of USA policy makers on taxes: House Ways and Means Chairman Kevin Brady (R., Texas), Senate Finance Chairman Orrin Hatch (R., Utah), Treasury Secretary Steven Mnuchin, White House economic policy chief Gary Cohn, Senate Majority Leader Mitch McConnell (R., Ky.) and House Speaker Paul Ryan (R., Wis.).
The so-called Big Six is expected to release an outline for a tax overhaul sometime this week, perhaps on Wednesday. We'll have more when we get some more specifics. "The question is, will we have the political will to do it?"