President Donald Trump could be poised to take on the GOP establishment with his new tax plan, according to a new analysis from the Tax Policy Center.
The plan, which could help boost revenue by $1 trillion over 10 years, would likely result in a major revenue boost.
Trump’s plan would provide a tax cut for most middle class families, a boon to the wealthy and a huge tax cut to the rich.
It would also allow Trump to reduce or eliminate some deductions and loopholes that currently benefit the wealthy.
The Tax Policy Forum, a nonpartisan think tank, estimated the plan would cut federal taxes by more than $1,000 for individuals and $1-2,000 in the middle class over the next decade.
“It’s one of the largest tax cuts in history, if not the largest, but it’s also one of those tax cuts that are so simple to enact that it’s almost almost not possible,” said Doug Holtz-Eakin, a senior fellow at the Tax Foundation, a think tank focused on tax policy.
“You just have to understand that it has to be very, very, carefully crafted.”
Republicans will face pressure to pass their tax plan as the deadline for the year approaches on Tuesday, but the White House has yet to make a decision.
On Thursday, House Speaker Paul Ryan released a statement saying the White Houses team is looking at the proposal and “will evaluate it and make a final decision as soon as possible.”
It is not yet clear what a final tax plan could look like.
“We’re not going to have a single set of rules that apply across the country,” Ryan said.
“That’s what I’m really focused on.
It’s about what’s right for America.
We need to be clear on what we’re doing.”
Tax policy expert Doug Holtzman said the new plan “seems to be a great starting point for Republicans.”
Trump has said he will sign the tax bill on Wednesday.
“I think we’re going to get it done on Tuesday,” Trump said in an interview with NBC’s Lester Holt.
But some lawmakers are already raising concerns.
Rep. Kevin Brady (R-Texas), a member of the House Ways and Means Committee, said on Twitter that he’s concerned about the plan because “Trump wants to increase taxes and then give himself a huge win by raising taxes on the middle-class.”
“It appears the Trump tax cut is a big, bad giveaway to the wealthiest Americans and the biggest tax increases for everyone else,” Brady said.
The White House did not respond to a request for comment.
The tax plan will likely help Trump by raising revenue and the deficit by billions of dollars, but Trump also faces a huge political hurdle: the tax code is riddled with loopholes and deductions that allow him to use his wealth to pay lower taxes.
While the bill includes some tax breaks for people making $1 million or more, it also allows businesses to deduct up to $10,000 from their income taxes.
For instance, the House GOP bill eliminates the alternative minimum tax, which limits the amount that businesses can deduct from their taxable income, and it eliminates the itemized deductions that are often used by individuals.
The House GOP tax plan would also end the estate tax, a tax on the wealth of individuals who pass away.
The Senate GOP tax bill, however, would eliminate the estate taxes entirely, a move that is expected to increase pressure on Democrats to support the tax overhaul.
In addition, Trump has repeatedly promised to eliminate the corporate tax rate.
Trump has suggested that the tax plan he released in May would end the corporate rate to just 15 percent and that he would not eliminate the alternative capital gains tax on investments.
A key question for Republicans is how they will pass the tax reform bill without creating a massive tax increase.
A top Senate Republican, Sen. Susan Collins Susan Margaret CollinsTrump orders review of North Korea sanctions after North Korea missile test: report McConnell says Dems will work with Trump on tax reform Trump to meet with House GOP leaders next week: report MORE (R, Maine), said Thursday that the bill will need to add $1 to $1 of additional revenue per $1 in tax cuts to bring down the deficit.
“If you’re going in and you’re making that change, I think we’ll probably need to have an additional $1 [per $1] of additional growth,” Collins told reporters.
“Because you’re basically cutting taxes and raising revenue, you’re not raising any new revenue.
So we’re basically just saying, ‘We’re going, we’re not cutting taxes, we’ll make up for that.’
But I think it’s going to be much more difficult than we’ve ever seen before to bring that down.”
But Holtzman, the senior fellow, said the tax proposal is likely to add more than that, since the Trump administration has indicated it would cut the corporate and estate taxes in some form.
“This isn’t a bill that I think