His plan also proposes to cap top marginal tax rate paid by sole proprietors, corporations and partnerships to 25 per cent.
"History has shown that, in Australia, when the business environment is improved and company tax rates reduced, company tax receipts have bounced back in just a few years as companies have greater earnings on which to pay tax".
On Wednesday, the White House announced a sweeping plan to cut a variety of taxes that would overwhelmingly benefit the wealthy.
New York Governor Andrew Cuomo slammed President Trump's tax plan in a tweet on Thursday saying residents of the state would actually see a tax increase and warned that it could drive people and businesses out of the state.
President Trump called for a "giant, beautiful, massive" tax cut that he said would be "the biggest ever in our country" during a National Association of Manufacturers' board meeting in Washington on Friday.
President Donald Trump told factory owners and executives on Friday, Sept. 29, that his proposed tax overhaul will slash rates for businesses and jolt the economy, part of a campaign to bring pressure on Congress to finally deliver him a signature legislative achievement.
Trump's proposal echoes the large tax cuts that former President Ronald Reagan, in 1981, and former President George W. Bush, in 2001, passed in the first year of their terms.
The plan would lower corporate and small-business income tax rates, reduce the top income tax rate for high-earning American individuals and scrap some popular tax breaks, including one that benefits people in high-tax states dominated by Democrats.
A crushing tax burden on American companies is really a crushing burden on American workers.
Those in the top 0.1 percent would fare even better if Trump's plan-which TPC found would reduce federal revenue by $2.4 trillion over the next decade-becomes the law of the land. But the information released didn't include the income levels applied to the rates, making it hard to know how a typical family's tax bill may be affected.
"Other countries are moving faster and further in reducing their tax rates and if we stand still, we will be left behind". The standard deduction would almost double to $12,000 for individuals and $24,000 for families, basically increasing the amount of personal income that would not be taxed.
Analysts have warned huge tax cuts would balloon the deficit if economic growth projected by Republicans to offset the costs fails to materialize amid rising interest rates. That is up from the original proposal in April of 15 per cent, but far lower than the top tax rates now faced by high-income earners of 39.6 per cent.
In a step to simplify tax returns, the plan would shrink the current seven tax brackets to three: 12 per cent, 25 per cent and 35 per cent.
But it's unclear how the president's plan, which needs to be fleshed out by the tax-writing committees in Congress, will fare there.