Trump said the net effect would be "a giant, beautiful, massive - the biggest ever in our country - tax cut" and called on business to press Congress to pass it.
Consolidate the seven existing tax brackets for taxable income to only three brackets: 12 percent, 25 percent, and 35 percent.
Opinion: What we know and don't know about Trump's tax plan. Failure on taxes, after the collapse of health care repeal, could cost the GOP dearly in next year's midterm elections with its House majority at stake.
The plan also calls for a corporate tax rate from 35 to 20-percent, a goal that has long had the support of House Republicans, and a one-time tax on the foreign earnings of USA companies.
But analysts, politicians and political forecasters say that enacting tax reform will be a much easier task, as both parties agree that the tax system must be updated. 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. For example, a 41% plurality of those with family incomes of $100,000 or more say tax rates on high incomes should be raised; 29% say they should be kept the same as now, while 27% say they should be lowered. The two-percentage point cut would work out to about $750 under the plan.
Among Republicans, however, there are sizable differences in views of taxes by income. While favorable tax rates could boost economic activity, that could play out over many years and be hampered by slow growth in the USA labor market, compounded by immigration restrictions. However, people now in the top 40 percent bracket would likely see their rate drop to 35 percent and get a tax break.
Now, the legislative focus will shift to tax reform, which Trump has been eager to tackle since taking office. To help low-income families, the plan would allow more American families to qualify for the Child Tax Credit. Even the proposed new and bigger standard deduction would not make up for the loss of the local and state tax deductions.
And also part of the proposal?
Those previous versions, which look nearly exactly the same as this version, albeit with a few more details specified, also got rid of personal exemptions while doubling the standard deduction. Instead, it deflects the issue, stating: "The framework contemplates that the committees will adopt measures to prevent the recharacterization of personal income into business income to prevent wealthy individuals from avoiding the top personal tax rate". That could especially hurt people in high-tax states like California and NY.
Trump, a real estate mogul-turned-politician, had pledged that the tax plan would not benefit the rich, himself included. For that, lawmakers will have to fill in the blanks and figure out exactly which priorities it will emphasize in the final legislation. You remember what you were doing that year? But a handful of little-known "Social Security secrets" could help ensure a boost in your retirement income.
He continued, "That means, especially for all of you with small businesses that are really tremendous businesses, you'll be able to leave them to your family, and your family won't have to run out and do a fire sale to try and get the money to pay the tax".
In coming weeks, we hope to see careful analyses in California of how elimination of the SALT deduction would affect the affordability of housing and the state's economy because if it goes through the Republican Congress, California will need a solution.