In a stunning reversal, the Trump administration on Friday released a sweeping proposal that will sharply cut taxes on most Americans, including the wealthiest Americans.
The proposal, which is being widely hailed as the most progressive tax proposal in decades, will hit the middle class hardest.
The administration’s proposed cuts, which will take effect in 2027, will be phased in over a three-year period, with an overall reduction in tax rates on average of 25 percent for everyone, according to an analysis by the nonpartisan Tax Policy Center.
The Trump administration will also begin to phase out deductions for state and local taxes, a provision that the Republican-controlled Congress has blocked.
The new proposal will include significant changes to the way corporate and individual tax rates are set, as well as changes to deductions that wealthy Americans can take, the Center on Budget and Policy Priorities estimated.
In a statement, the White House said the plan would “help middle-class families, spur job creation and ensure that the wealthy pay their fair share of taxes.”
The tax proposal, the Tax Foundation said, would cut taxes for “the wealthiest Americans by $6,300 over the next decade.”
The Trump plan would cut tax rates for the middle and lower class by $1,700 per year over the same period.
The White House estimated that the plan will add nearly $3,000 to the national debt.
The president’s plan would also repeal a measure that reduces the federal deficit by $3.5 trillion over 10 years by phasing out deductions and tax credits for lower-income Americans.
Tax experts estimate that the tax cuts could add $3 trillion to the deficit over 10.5 years.
The tax cuts will be a boon for business owners, as many companies will now have a higher rate, which means they will pay more in taxes.
And the plan includes a $1.5 million tax credit for people earning between $50,000 and $75,000 per year, and an additional $2,000 tax credit to people making more than $250,000.
Republicans have said that these provisions would encourage companies to hire, create jobs and raise wages, but the White Street Group, a research firm, said that they would be “a massive drag on economic growth” and said that a large portion of the plan is simply a “job-killing giveaway.”
A White House official said that the “federal government will have a larger, more flexible workforce, while providing more tax relief for businesses.”
The White Street analysis also said that businesses would “reinvent their tax systems and increase tax burdens,” and would see the economy grow by $2 trillion.
Trump has said that his plan would spur economic growth.
But some economists argue that the cuts will hurt the economy, since the corporate tax cut and a new deduction for state taxes will have little impact on overall economic activity.
The Congressional Budget Office has estimated that between 2020 and 2026, the tax cut would increase the deficit by an average of $1 trillion.
That would add up to a $2.6 trillion deficit over the following decade, according the CBO.
The Republican plan will also eliminate the estate tax, a tax levied on estates worth more than more than half a million dollars, a policy that was initially introduced in 1933 by then-President Franklin Roosevelt.
The estate tax has become an important source of revenue for the federal government, and many of the wealthy are already able to deduct large sums of money that they don’t have to pay taxes.
Trump’s plan will not affect these wealthy people, as the government will be able to use the money to pay for social services and other government programs.
However, the estate taxes are scheduled to sunset on Jan. 31, 2021.
The House is set to vote on the plan on Thursday.
It is expected to pass, but Republicans will need to win over the support of two-thirds of the chamber to get the bill through the Senate.
The legislation is expected in the Senate as early as Thursday, according a Republican aide familiar with the negotiations.