Trump reveals outline for tax reforms

Mnuchin described the AMT as an unnecessary complication ti the tax code.

Most states have tied their tax codes closely to the federal code.

"The question is, what will more people do if they have more money in their pockets?"

Trump also wants to reduce the top income tax rate from 39.6 percent to 35 percent. It is perhaps the most complicated and uncompetitive business rate in the world.

Trump's plan, which has been touted as the largest tax cut in history, would apply sharp tax cuts for individuals and corporate businesses, trimming the number of individual income tax brackets to just three: 10 percent, 25 percent and 35 percent, according to The New York Times. While doubling the standard deduction and keeping the mortgage interest deduction are good steps, the relief to working families in this proposal pales in comparison to how it helps the rich get richer.

In its analysis of the Trump plan, the Committee for a Responsible Federal Budget said "no achievable amount of economic growth could finance it" and it would drive the debt to 111 percent of the gross domestic product by 2027, compared with 77 percent now.

"Passing genuine tax reform would include structural changes".

Trump also called for a repeal of the "alternative minimum tax", a parallel tax system that kicks in when taxpayers request many itemized deductions and rejects specific deductions, including for assorted real estate write-downs that Trump tapped in past years.

House Republicans were already reportedly considering eliminating the deduction on state and local taxes, which could disproportionately affect wealthy people in high-tax blue states such as NY and California. Cohn said they would preserve tax breaks that incentivize home ownership, retirement savings, and charitable giving. But nearly all others would be jettisoned.

"It's not the federal government's job to be subsidizing the states", Mnuchin told reporters at the briefing with Cohn. "It's the state's independent decision as to do what they want to tax".

The proposed changes don't match Trump's campaign promise that he'd "massively cut taxes for the middle class, the forgotten people, the forgotten men and women of this country, who built our country".

The White House will present its final tax reform proposal plans by August.

Trump says he will release tax reform package next week
Moore defined those groups inside the administration as "those who are deficit hawks versus those who don't care about that". The House Republican tax blueprint tried to offset the lower rates by introducing a new tax system that applies to imports.

Small businesses and their lobbying groups have championed pass-through tax cuts by saying they would encourage new investments and increased hiring. Companies in the S&P 500 index paid an average tax rate of 29.06 percent for 2016, Standard and Poors said.A change of a few percentage points in tax rates can make a big difference. "Not a surprise that companies leave trillions of dollars offshore", Mnuchin said. "But there is no golden goose at the top of the tax cut beanstalk, just mountains of debt". But Democrats and Republicans have both been open to the idea of a tax holiday. "The same trickle-down economics that undermined the middle class are alive and well in the president's tax plan", said House Minority Leader Nancy Pelosi, D-Calif.

"It's not tax reform", said one senior GOP aide.

It would also switch to a territorial tax system.

Mnuchin said the government is "determined to move this [tax plan] as fast as we can, and get this done this year". "So I hope [Democrats] don't stand in the way".

Here's a look at the major ways it may impact the municipal market if ultimately enacted by Congress, according to Wall Street analysts and investors, who remained skeptical of its prospects. "What that means is they have more funds to be competitive and compete back against us", he said.

"Since the 15 percent has been in the press for the last couple of days, I will confirm that the business tax is going to be 15 percent", Mnuchin said at a discussion about the proposal.

That is, if tax reform manages to pass Congress.

House Speaker Paul Ryan put a positive spin on things during his own news conference Wednesday, noting that he saw the administration's announcement as a clear example that "progress is being made and we're moving and getting on the same page". Trump has proposed eliminating the estate tax, which could cost those states $3 billion in annual revenue.

Alex Raskolniknov, a tax professor at Columbia Law School, was alarmed by the lack of precision in the plan.

Treasury Secretary Steven Mnuchin promised in November that the upper class wouldn't receive a tax cut.

For individuals and families, Trump's plan more closely resembles a blueprint released by House Republicans a year ago.