The White House unveiled an ambitious tax overhaul plan on Wednesday, proposing huge cuts for individuals and businesses in what it called one of the "biggest" tax reforms in US history.
The plan unveiled by Donald Trump's administration lowers the corporate tax rate "from one of the highest in the world to one of the lowest," at 15 percent.
It also reduces the top tax rate assessed on pass-through businesses, including small partnerships and sole proprietorships, to 15 percent from 39.6 percent, the White House said.
The reform would lower the individual tax burden across the board, affecting millions of Americans, but would also eliminate "targeted tax breaks that mainly benefit the wealthiest taxpayers," the White House added.
The plan was unveiled at the White House by Treasury Secretary Steve Mnuchin and Trump's economic adviser Gary Cohn.
Cohn dubbed the proposed plan "the most significant tax reform legislation since 1986, and one of the biggest tax cuts in American history."
Trump tax plan outlined today huge step to create huge future growth. Key: kill idiotic 20% border sales tax idea once and for all.
— Steve Forbes (@SteveForbesCEO) April 26, 2017
Mnuchin called the proposals "core principles" that would be worked on with Congress to produce a bill that can be passed. He said the plan would pay for itself through economic growth, and by reducing tax deductions and closing loopholes.
Our objective is to make US businesses the most competitive in the world. The president is determined to unleash economic growth for businesses — Steve Mnuchin
Senate Democratic leader Chuck Schumer assailed the plan and took a jab at Trump, a wealthy New York real estate developer.
"If the president's plan is to give a massive tax break to the very wealthy in this country - a plan that will mostly benefit people and businesses like President Trump's - that won't pass muster with we Democrats," he said in a statement.
.@POTUS Very wealthy are doing pretty well. God bless 'em. But they dont need a tax break while working class Americans need help staying afloat.
— Chuck Schumer (@SenSchumer) April 26, 2017
Two former Goldman Sachs bankers announced the Trump tax plan today, which...slashes taxes for big banks like Goldman Sachs. #CronyCabinet
— Alexis Goldstein (@alexisgoldstein) April 26, 2017