Meanwhile, the group of administration officials and congressional leaders that's planning a framework for tax legislation is also expected to recommend cutting the top individual tax rate to 35 percent, down from 39.6 percent, according to two people familiar with the matter.
Trump has long touted the need to simplify the tax code.
The tax plan was outlined the day after the Republicans' top legislative priority, an overhaul of the USA healthcare system, collapsed in the Senate, while another key item on Trump's wish list, infrastructure spending, has yet to materialize. "Thirty percent of taxpayers itemize, the other 70 percent claim a standard deduction, and that standard deduction is going to almost double in size to 12,000 for individuals and 24,000 for married taxpayers". The plan is light on details here, but leaders plan to significantly increase the $1,000-per-child credit as well as make it more available to people with higher incomes.
Democrats blasted the proposal, saying it would raise the burden on middle-class families, while offering a break for the wealthy.
But it would also slam high-income New Yorkers.
The deductions the administration intends to keep are for mortgages and charitable contributions, although the White House is urging the House and Senate committees to incentivize retirement saving.
Taxes on high-income households are one of the core issues that divide the parties and most Democrats have insisted that the wealthiest Americans not got a tax cut.
As the Republicans regroup following the failed attempt to repeal and replace the Obamacare in July, they are now focusing on an aggressive tax code rewrite.
By refusing to specify on Wednesday which tax breaks could be jettisoned, GOP leaders make a calculated effort to try to postpone any backlash while they try to build a coalition. A report by Tax Foundation says that a difference of 5 percent between what the president and Republicans differ on represents $700 billion.
According to a new poll by CNN, 68 percent of Americans hope to see either a complete overhaul or major changes to the US tax system.
-The estate tax-which taxes a deceased person's estate before it is distributed to his or her heirs-and the alternative minimum tax-which establishes a baseline even for those rich entities that have used loopholes or exemptions to reduce their income tax-would be gone.
For companies with an global footprint, the White House is also proposing a shift from the current worldwide tax system to a territorial system.
This is the tax measure that will cause the biggest trouble for state lawmakers. This means that the current 35 percent rate would fall to 20 percent.
"Under current law, taxable income is subject to seven tax brackets".
Donald Trump's plan would cut corporate income tax rates to 20 percent. It also makes the USA more competitive internationally.
Kansas Congresswoman Lynn Jenkins says the GOP-led tax reform plan won't be anything like the one promoted by Gov. Sam Brownback and passed by the Kansas legislature passed five years ago.
Analysts have warned that huge tax cuts would balloon the federal deficit and debt if the economic growth projected by Republicans fails to materialize amid rising interest rates. The one-time tax would be payable over several years.