President Trump's Tax Plan And Widening Income Inequality12:24

House Speaker Paul Ryan of Wis. speaks during a news conference after a GOP caucus meeting on Capitol Hill in Washington Wednesday

President Trump's Tax Plan And Widening Income Inequality12:24

The proposal, which the White House promised would be the "the biggest individual and corporate tax cut in American history", was strikingly short on details, from how much the goodies Trump is dangling would cost to how his Administration plans to patch the hole it would blow in the budget.

Under the plan, the corporate tax rate would be slashed from 35% to 15%.

Treasury Secretary Steve Mnuchin, who is leading the Trump administration's effort to craft a tax package that can pass Congress, described the plan as the "the biggest tax cut" in U.S. history and said he hoped it would attract broad support.

"They went into some suggestions that are mere suggestions and we'll go from there", said GOP Senator Orrin Hatch of Utah, chairman of the Senate Finance Committee.

The proposal could also add trillions of dollars to the deficit. Unlike the earlier proposal, which taxed the money coming back in at 5.25%, the new plan released on Wednesday did not provide any detail on the rate. The plan also would repeal the 3.8 percent Obamacare tax on dividends and capital gains, which Cohn said has been a direct hit on investment income and small businesses. It would double the standard deduction for married couples to $24,000, while keeping deductions for charitable giving and mortgage interest payments.

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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.

"It's not the federal government's job to be subsidizing the states", said Treasury Secretary Steve Mnuchin.

Mr Mnuchin said the administration was "determined to move as fast as we can" and would seek to pass a bill by the end of the year.

The Trump administration announced its vision for a revamped USA tax code Wednesday. Mnuchin said the change for small business owners - a group that under the current definition could include doctors, lawyers and even major real estate companies - would be done in a way that would ensure wealthier Americans could not exploit the change to pay less than intentioned in taxes.

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