Quote:President Donald Trump and congressional Republicans are proposing a far-reaching, $5 trillion plan Wednesday that would cut taxes for corporations and potentially for individuals, simplify the tax system and nearly double the standard deduction used by most Americans.
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There are no details on how much it would cost, though back-of-the-envelope estimates by outside experts put the tax cuts in the range of $5 trillion over the next 10 years. The net cost to the federal debt would be far less — probably in the range of $1.5 trillion under deal put together by Senate Budget Committee Republicans — and the real battles will come as lawmakers quarrel over which tax breaks might be eliminated to help pay the balance.
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The plan would collapse the number of personal tax brackets from seven to three.

The individual tax rates would be 12 percent, 25 percent and 35 percent — and the plan recommends a surcharge for the very wealthy. But it doesn't set the income levels at which the rates would apply, so it's unclear just how much of a tax change there might be for a typical family, and whether its taxes would be reduced.
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The plan would nearly double the standard deduction to $12,000 for individuals and $24,000 for families. This basically would increase the amount of personal income that is tax-free.

Deductions for mortgage interest and charitable giving would remain, but the plan seeks to end most other itemized deductions that can reduce how much affluent families pay.
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The plan would retain existing tax benefits for college and retirement savings such as 401(k) contribution plans.

It would seek to help families by calling for an increased child tax credit and opening it to families with higher incomes. The credit currently is $1,000 per child.

Also proposed is a new tax credit of $500 to help pay for the care of the elderly and the sick who are claimed as dependents by the taxpayer.

The estate tax — which is paid by those with multimillion-inheritances — would be eliminated
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Corporations would see their top tax rate cut from 35 percent to 20 percent. For a period of five years, companies could further reduce how much they pay by immediately writing off their investments.

New benefits would be given to firms in which the profits double as the owners' personal income. They would pay at a 25 percent rate, down 39.6 percent.