The Republicans have not achieved major legislative successes since Trump took office in January despite their control of the White House and Congress.
As recently as this past weekend, Trump said he hoped for a 15 percent rate, which he has argued is key for US job creation.
The new top tax rate for small businesses will be 25 percent.
However, current law provides married couples with two children tax exempt status on the first $28,900. In an announcement Wednesday, the White House provided the skeleton of the plan, which would, unsurprisingly, but corporate and individual taxes.
But many lawmakers say reform will only happen if both parties work together.
President Donald Trump and congressional Republicans have unveiled a long-awaited outline of their tax reform plan that will affect all American individuals and businesses, but one big thing was left out: how to pay for it.
Sen. Tim Scott, R-S.C., said, "If I could say it as simply as possible, I would say that this tax reform conversation is about #keepyomoney".
The new tax plan, he explained, would encourage more companies to bring jobs back to the United States.
Repeal of the alternative minimum tax. The plan also eliminates the estate tax, which only applies to those with assets valued above $5.49 million.
Three tax brackets: 12%, 25%, and 35% (currently there are seven brackets, with the lowest one being 10% and the top one being 39.6%). A meeting of congressional Republicans took place earlier September 27, where House Ways and Means Committee chairman Kevin Brady spoke about the tax plan, which was warmly welcomed.
But the president says it would be offset by nearly doubling the standard deduction - $24,000 for married taxpayers filing jointly, $12,000 for single filers. That almost doubles the current standard deductions.
An end to taxation of US companies' worldwide income and a move to a territorial system.
Most deductions apart from home mortgage interest and charitable deductions would be eliminated, including the deduction for state and local taxes, which now provide a major break on federal income taxes for residents of coastal and high-tax states.
"The reason they would do that is to make sure that we achieve our goals of making this a middle class tax cut that is at least as progressive as the current system and that doesn't shift the tax burden from higher income to lower income households", the official explained.
In many Democratic states that have high local taxes, like California, New York, and New Jersey, they will see their state and local tax deduction reduced in order to help fund the federal cuts.
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