The Trump administration has released its plan to overhaul the tax code that includes a proposal to give tax breaks to some high earners while lowering the threshold for others.
The White House said Thursday that the proposal would give some tax breaks for higher earners, but not others.
Trump’s plan would also reduce the top income tax rate from 35 percent to 21 percent, eliminate personal exemptions and cap deductions.
But it would allow taxpayers to claim an additional $1 million in tax-free contributions.
The plan also would lower the tax rate on individual income taxes by $3,000, a $1,000 tax credit for children, and a $3 million tax credit to help low- and middle-income families.
The changes, which the White House called the “Buffett rule,” are among the biggest in decades.
Under the plan, most taxpayers would receive a $2,000 credit for the amount they earn, while others would get a $500 credit for earnings over $200,000.
Those earning under $250,000 would get no credit.
The Tax Policy Center estimates that the Buffett rule would reduce revenue by $4 trillion over 10 years.
The nonpartisan Tax Policy Foundation estimates the plan would reduce the deficit by $1 trillion.
The proposal also eliminates the alternative minimum tax, which applies to a variety of business income, including wages, salaries and royalties.
It also repeals the estate tax, a tax on inheritances that has long been a popular tool for wealthy individuals to avoid paying taxes.
The tax cuts Trump outlined Thursday were among a host of proposals the administration presented to Congress in a bid to push the GOP agenda through Congress and win support from the public.
Trump said he wanted to take the country forward as quickly as possible.
“We’re going to get tax reform done, we’re going the right way.
And the right thing is to get it done in a way that will get us back to where we need to be, and that’s in a better position to deal with the issues of economic growth and jobs and economic growth, and jobs for everybody,” Trump said.
He added that tax cuts are “not the answer.”
Trump, however, is not expected to sign a bill before the end of the year.