But Trump's top economic adviser, Gary Cohn, and Treasury Secretary Steven Mnuchin, weren't ready Wednesday to say at what income levels these new rates would kick in.
"The Trump Administration's tax reform proposal is massively pro-growth", said Club for Growth president David McIntosh.
Trump's plan would replace the current seven income tax brackets with three, and the top bracket would drop from 39.6 percent to 35 percent. Only those passing on estates worth more than $5.45m ($10.9m for couples) pay any tax at all, a category in which Trump comfortably fits. These are key Republican goals that would require lawmakers to eliminate or reduce precious tax breaks enjoyed by millions of Americans.
Trump's plan would help pay for lower individual tax rates by eliminating deductions, exemptions and credits.
Still, "I would never, ever bet against this president". He understands that there are a lot of people in this country that feel like they work hard and still can't get ahead.
The president's proposal marks a rehash of an economic theory popularized in the 1980s.
However, the one-page proposal didn't outline whether the plan would be "revenue neutral", or whether it will result in a bigger budget deficit.
Some economists agree, but most budget experts say it's unlikely. "If Trump is really willing to cut [the corporate tax rate] from 35% to 15%, then I think that can be a game-changer, and not only for US companies", said Tuan Huynh, managing director and chief investment officer for Asia Pacific at Deutsche Bank Wealth Management. "This is really about a middle-income tax cut". Therefore, either these tax benefits should be substantially increased or they should be done away with and instead a special tax benefit like the erstwhile standard deduction be introduced.
US Senator Tim Kaine Attends White House Briefing on North Korea
Security Council meeting Friday created to get nations to enforce existing penalties on North Korea and weigh new ones. The Pentagon also previous year quietly realigned its efforts to counter weapons of mass destruction under U.S.
On the economic side, growth will be driven by reducing capital gains and dividends taxes to 20 percent and repealing the 3.8 percent Obamacare tax on both. "We will wait to see what happens", Director Ken Hong said, "because we are not sure how the proposal will [turn out]". Mnuchin said Trump's plan would encourage corporations to return the money to the United States and invest it in plants and equipment.
There are times in US history where the simple logic behind tax cuts panned out positively.
Rose: The Republican party is famous for being against debt and deficits.
Meanwhile, Trump plans to maintain two of the largest breaks for wealthy taxpayers, the deductions for interest paid on mortgages and contributions to charity. This year, the estate tax will cost the families of the deceased $3.79 million each on average, and that figure is going to be much larger for those among the billionaire set.
"The president has released plenty of information and I think it's given more financial disclosure than anybody else and the population has plenty of information", Mnuchin said Wednesday when pressed at the briefing by ABC News' Jonathan Karl on whether the US public has the right to know what's in Trump's tax returns. Ron Wyden, or OR, ranking Democrat on the Finance Committee.
On the other hand, it would trim other deductions, including for state and local tax payments, a change that could alienate lawmakers in states such as California and NY with higher state taxes.
Mnuchin said the Treasury would issue rules to prevent wealthy people from capitalizing on the lower rate.
The administration has emphasized that the plan is focused on simplifying the tax code and helping middle class Americans. That amounts to 14.1 percent of the annual income of a typical household in that rarefied group. There was no time for specification of a proposal, let alone consultation on its merits, estimates of its revenue impact, or evaluations of its economic impact.
Pro-growth conservatives were quick to embrace President Trump's tax reduction and reform outline.