Republican leaders are meeting Wednesday with rank-and-file lawmaker to sell the plan.
Republicans argue that the tax cuts would be offset by new revenues raised from eliminating tax loopholes and would drive more robust USA economic growth, predictions that critics are sure to question.
Perhaps the most major yet murky shift on the business side is the move from a worldwide tax system to a territorial tax system. The Tax Policy Center, a nonpartisan group that reviews tax proposals, found that about 50 percent of the cuts from that plan would benefit the top 1 percent of USA households. That's not as low as Trump wanted, but is still a very big reduction, to the lowest top rate since 1940. By eliminating the estate tax he could transfer that wealth to his children without paying any taxes on it. Third, make America the jobs magnet of the world by leveling the playing field for American businesses and workers. This opens the door for wealthy Americans to incorporate as a business, and thus pay the lower tax rate.
For individuals, there is much less clarity. What we don't know, however, is which incomes will fall into each tax bracket. Given the president's penchant for defying the wishes of his own party, there is widespread concern among insiders that he will abandon the Big Six plan and call for 15 percent anyway.
The plan would also, for the first time, create a 25-percent tax for "pass-through" businesses, which account for the vast majority of business income in the United States and are now taxed at individual rates. The White House and congressional leaders have considered giving up on a push to repeal the estate tax.
The GOP plan also calls for a "substantially higher" child tax credit, a new $500 credit for non-child dependents like aging parents and retaining unspecified incentives for higher education and retirement savings. The GOP also is at odds over eliminating the federal deduction for state and local taxes.
Republicans proposed eliminating some existing tax deductions, though they retain deductions for mortgage interest payments and charitable deductions.
Doubles the standard deduction for married taxpayers filing jointly to $24,000, and $12,000 for individuals.
Since it was enacted, the AMT has gone under several iterations and now affects roughly over 4 million taxpayers, mainly those who earn $250,000 in adjusted gross income.
Doing so would drastically reduce the number of people who opt to itemize their deductions, since the only reason to itemize is if your individual deductions combined exceed the standard.
The highest-earning Americans will also see a substantial tax relief. Higgins said Trump reiterated his commitment to focusing on economic growth and middle-class tax cuts.
Cut corporate tax rate to 20%: Such a drastic drop from today's 35% rate would put the USA rate below the 22.5% average in the industrialized world.
What cuts are in Republican tax plan?
House Ways and Means Committee Chairman Kevin Brady (R-Texas) on Monday said the House and Senate will pass budget proposals ahead of the tax legislation to ensure Republicans can take advantage of the fast-track reconciliation process to pass a tax overhaul by the end of the year.