Under the framework, Republicans also propose almost doubling the standard deduction to $24,000 for married taxpayers filing jointly and $12,000 for single filers. The lower two tax brackets will be 10 percent and 25 percent, according to this source. President Donald Trump will give an address in IN to promote the plan to the American people. "It gives a massive tax cut to the wealthiest American households at the expense of the middle class". The White House official said IN was chosen to be where President Trump reveals new details because of the economic progress the state made under Pence's leadership when he cut income taxes and "red tape" to create a "competitive edge" that compelled dozens of companies to come to IN instead of surrounding states with higher tax rates.
Republicans are preparing to release the framework of their tax reform proposal on Wednesday, the result of months of work by congressional leaders and the Trump administration.
So-called pass-through businesses that pay taxes through the individual code - from mom-and-pop operations to large partnerships such as law firms, hedge funds and some of Trump's own businesses - would see their top tax rate drop to 25 percent from 39.6 percent. Although Republicans have insisted that the budgetary impact of the tax cuts will be offset by closing existing loopholes, it is unclear if any specifics will be mentioned in their upcoming plan.
A blueprint of a Republican tax overhaul plan proposes tax cuts to wealthy Americans, businesses and the middle class while protecting deductions such as those for mortgage interest and charitable contributions.
He went on to say his administration is working on tax cuts and reform that are aimed at creating jobs in the USA for citizens. The plan does not call for changes in the tax treatment of retirement or college-savings plans, either.
House Republicans planned to hold a retreat Wednesday at Fort McNair, Maryland, a few miles from the White House, to discuss the proposal.
At one point, Trump said that getting the corporate rate down was the key to getting the economy to grow. During the campaign, Mr. Trump said overhauling the tax code would raise economic growth to 4 percent.
US President Donald J Trump (centre) met Tuesday in Washington with top congressional figures, House Ways and Means Committee Chairman Kevin Brady (right) and Ways and Means Committee Ranking Member Richard Neal.
Republicans also plan to push for collapsing the seven income tax rates to three new brackets, .
Almost seven in 10 tax filers claimed the standard deduction in 2013, the Tax Foundation said.
The president is expected to say that his plan will restore a competitive advantage for US businesses and create more jobs and higher wages for American workers. The plan is vague, for instance, about what happens to the deductions for state and local taxes that many expect to be on the chopping block.
The White House and a spokeswoman for the House Ways and Means Committee did not respond to a request for comment on the Axios report, or a request to confirm the proposed standard deduction rates.
One of those provisions is the elimination of the alternative minimum tax, or AMT.
Neal said Trump showed a readiness to avoid cutting taxes for the wealthy during their meeting.