The us President, Donald Trump has called for large tax cuts as part of a prolonged effort of the Republicans to the revision of the US tax system.
A framework for freedom by the Republicans calls for the reduction of the tax rate for corporations from 35% to 20%, among other changes.
The president said that the reform will make the us more competitive and help middle-class families.
Democrats criticized the plan as a gift to the rich.
The Republican plan does not detail what tax benefits may be eliminated to offset the cost of the cuts of the negotiations that are likely to be difficult.
The Chamber of Commerce, an influential business group that has fought for the reform, said it would remain committed during the “difficult decisions” ahead.
What are the cuts in the Republican plan of tax?
Reduce the corporate tax rate from 35% to 20%
Change of tax on overseas profits
25% of the rate for businesses organized as “pass-through entities” such as limited liability companies and corporations
Almost double the amount that individuals and families can deduct $12,000 and $24,000
Increase the child tax credit
Introduce a new tax credit for non-child dependents
To eliminate a tax on inheritances
The president, Trump said he wanted to simplify the system, reducing the burden on middle class families and make the more competitive.
“Our country and our economy cannot take off as it should, unless we dramatically reform America’s outdated, complex and extremely burdensome tax code,” he said.
Among the changes, the Republicans would have slim the number of tax categories to the three people charged in a 12%, 25% or 35% rate.
What income would be eligible for each price is still unknown.
Currently, the lowest rate is 10% and the maximum rate is close to 40%.
Democrats said that the changes will hurt middle-class families, particularly those of lower income, single parents with children.
“He is talking the talk, but he’s not walking the walk,” said Senator Chuck Schumer, of New York, a Democrat.
Mr Schumer also said that the cuts increase the deficit, putting the social assistance programs, such as Medicare and Social Security at risk.Deficit-financed cut
The Committee Responsible Federal Budget, a nonpartisan think tank, said that an initial analysis suggests the proposal would lead to $2.2 tn net cuts of more than a decade.
The Triumph of the administration argues that closing loopholes will help offset the loss of revenue, but the plan does not specify what the benefits will be eliminated.
Lawmakers plan to preserve tax incentives for homeownership, retirement, education, as well as research and development.
White House officials said that the intention of erasing the deduction for state and local taxes, among others.
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The president, Trump said that the lower the tax rate for the company will boost growth, help to cover the cost.
But the economists argue that the growth will not be enough to close the gap. They expect the plan to add to the debt of the united states, which has already spent $20tn.
“It is clear that much more work needs to be done to ensure that the tax reform is fiscally responsible,” the Committee Responsible for the Federal Budget, he said. “Given today’s record levels of national debt, the country cannot afford the luxury of a deficit-financed tax cut.”Building momentum
The republicans are looking for a political win, after failing in the reform of the us healthcare.
The Triumph of the administration was committed to achieving the fiscal reform before the end of August.
But it has been very difficult to reach agreement on the general objectives published on Wednesday, many of whom are family members of the above proposals.
The republican leaders presented a united front on Wednesday, pledging to make changes this year, while the control of the White House and the Congress.