The Republican House Committee unveiled a $1.5 trillion plan to cut taxes for corporations and champion a system that helps businesses. The bill also reduces taxes for some middle-class families. Trump responded to the proposal with his usual optimistic tone, but a lack of details.
Another key element of the proposal will eliminate deductions while increasing the standard deduction. Vice president Mike Pence says the new plan will save people time, money, and simplify the tax code.
While the tax bill would make up for $1.5 trillion lost in tax revenue, the Concord Coalition says the bill would actually add $1.5 trillion to a national debt that is expected to grow by $10 trillion over the next 10 years.
The corporate tax rate will drop to 20% from 35%. The National Federation of Independent Business says that this bill will not have any benefits for small business owners. The bill also provides some relief for estate tax.
Advocates say this bill will cut $1,100 from middle class earners. Opponents from high tax states like New Jersey and New York say constituents will actually see a tax increase.
President Trump wants to see a vote on this bill by Thanksgiving.