The Donald has announced a plan to gut corporate taxes and eliminate the estate tax.
The plan has drawn the ire of the Senate Finance Committee, which is investigating whether it will do enough to help the middle class.
The Republican plan has been dubbed “Trumpcare,” and it’s now expected to be passed by the House and Senate within days.
The White House said Thursday that the bill would cut taxes for individuals and corporations by $1,000 a year and eliminate taxes for capital gains, dividends, and interest.
The tax cut will be offset by cuts to the corporate tax rate, which would go from 15 percent to 15 percent.
The GOP plan also eliminates the estate taxes, a popular deduction for people who die without having paid any estate taxes.
A tax reform plan unveiled by the Senate on Thursday, though, will lower the top tax rate from 35 percent to 25 percent and make some provisions permanent.
“The president is putting forward a comprehensive tax plan that will make America’s businesses stronger and grow our economy,” Treasury Secretary Steven Mnuchin said in a statement.
“This plan is not just good for businesses and their workers, it is good for our country.”
The Senate plan would reduce the top rate to 20 percent and phase out the estate and alternative minimum tax.
It would also phase out all tax breaks for the wealthy, including the Alternative Minimum Tax, which requires that wealthy people pay a minimum amount of taxes on their income and their business profits.
Mnuchin noted that the House plan would also lower the rate to 10 percent and would eliminate the alternative minimum taxes.
He said the House proposal would “ensure that no middle-class American will be left behind.”
Mnuchin also said the Senate bill will include the $5 trillion in tax breaks and infrastructure spending that Trump has called for.
“President Trump has pledged to deliver for American families by cutting taxes and cutting red tape, which he has done.
That includes tax cuts for American workers and their families, and infrastructure investment,” Mnuchin wrote in a memo to House Republicans.
The Senate GOP tax plan, however, is expected to include a large tax break on the wealthy.
“Trump’s plan is a tax break that will benefit only the very rich, and it includes a massive windfall for the very wealthy,” Senate Finance Chairman Orrin Hatch, R-Utah, said in the statement.
The House Republican tax plan would be slightly less generous than the Senate plan, which includes $2,000 in child tax credit for families earning up to $5 million.
“These are important measures that are essential to our economy and to American families,” Hatch said.
The Trump administration did not respond to a request for comment Thursday.