Trump's plan eliminates any federal income tax on individuals who earn less than $25,000 a year or on a married couple earning less than $50,000 per year, a potential tax break for 31 million households, according to the plan.
On the flip side, the highest-earning individuals would also see a tax break, subject to a 25 percent tax rate compared with the current rate of 39.6 percent.
"It will provide major tax relief for middle-income, and for most other Americans, there will be a major tax reduction," Trump said. "It will simplify the tax code."
The billionaire businessman's plan starts with the lowest bracket of 10 percent and would apply to income from the $50,000 - $100,000 range for a married couple; the next bracket of 20 percent would apply to married couples earning in excess of $100,000. Trump's plan eliminates the alternative minimum tax and slashes the highest capital gains rate to 20 percent from the current 23.8 percent. Lower-income Americans who will pay no income taxes under Trump's plan will instead "get a new one page form to send the IRS saying, 'I win,'" according to the plan.
On the campaign trail, Trump has promised he would go after "the hedge-fund guys" to pay their fair share. His plan ends the "carried interest" tax break, which allows many investment-fund managers -- "the hedge-fund guys" -- to pay lower taxes on much of their earnings. "In other words, it's going to cost me a fortune," Trump, a billionaire, said.
The tax plan is Trump's third policy paper. His first paper covered his controversial plan for immigration reform, and his most recent paper, released earlier this month, focused on Trump's support for the Second Amendment, specifically gun control. The second paper included a reversal by Trump, who once supported a ban on assault weapons but now says "law-abiding people should be allowed to own the firearm of their choice."
Trump was joined onstage today by tourists and at least one woman who works for Trump. Kathy Johnson and Tricia Behne of Delray Beach, Fla., were in New York to see a Broadway show and stopped by Trump Tower to buy Trump campaign swag. Little did they know they would end up onstage. "Our daughters did beauty pageants years back and we met Donald Trump on the circuit," Johnson told ABC News. "We're huge fans."
ABC News' Josh Haskell contributed reporting to this article.