President Donald Trump is making the case for a sweeping plan to overhaul the tax system for individuals and corporations.
The president has vowed since his 2016 White House campaign to overhaul the USA tax code. He says it's time for the nation to fight for American workers. President Trump said there are trillions of dollars being kept overseas.
Earlier, Republican House and Leaders outlined the proposal in a "unified framework for fixing our broken tax code". He said the U.S. has the highest business tax rate in the world and that causes business leaders to outsource jobs from overseas.
Trump also claimed that 20% was his goal all along, despite advocating for 15% as late as Tuesday.
Bloomberg reported that the lost revenue may be made up by cutting state and local tax deductability, a plan that would hurt high earners in "high tax" (and mostly Democrat-leaning) states such as NY and California. "Very, very strongly I think there's very little benefit for people of wealth".
It would lower the top corporate income tax rate to 20% from the current 35%.
All of that means that tax reform has a long way to go, and that success is not assured, even with Republicans controlling the White House and Congress.
"We're going to bring the individual rate to 10 percent or 12 percent, much lower than it is right now", he said. But they're divided over whether to add to the government's ballooning debt with tax cuts.
The plan, developed by GOP representatives from the White House, Senate, and House of Representatives, is an outline of proposals that would be the biggest change to the US tax code in more than 30 years. As Conservative economist Douglas Holtz-Eakin said in Bloomberg: "Until I see it, I have nothing but worries ..."
Beyond slashing the corporate tax rate to "no higher than 20%", Trump's proposal also offers write-offs for companies that move their manufacturing plants to the United States and would incentivize the repatriation of "trillions" of dollars in U.S. companies' profits stashed in tax havens overseas. A new surcharge on wealthy taxpayers might soften the appearance of the wealthiest Americans and big corporations benefiting from generous tax cuts.
Mr Trump issued a warning shot to Senator Donnelly from the stage: Support the tax overhaul or I'll campaign against you next year. And, the president said that the new tax proposal will repeal the "crushing" estate tax, which is also known as the inheritance or death tax; this is a tax imposed on property transferred from a deceased person to their heirs.
Despite touting the plan as a "middle class miracle", and it may be, it is unclear at this point who would benefit from the Trump administration's tax reform proposal: the rich, the poor, or the in-betweeners. He said the majority of Americans would be able to file their taxes on a single page.
A senior White House official said Trump will tell supporters that "it's time for Washington to learn from the wisdom of IN".
A new Republican blueprint for overhauling the US tax code employs the themes of economic populism that President Donald Trump trumpeted during the presidential campaign to win support from working-class voters.
House Republicans plan to hold a conference meeting Wednesday, and public information about the plan is expected shortly afterward.