Trump announces plan to cut tax rates, double deductions

The president outlined the reform effort today in Indianapolis.

“My fellow Americans, this is the right tax cut. And this is the right time. Democrats and Republicans in Congress should come together finally to deliver this giant win for the American people and begin middle-class miracle,” he said.

The plan proposes to slash the corporate tax rate to 20 percent, from 35 percent; lower the top individual tax rate to 35 percent, from 39.6 percent; repeal the estate tax; double the size of standard deductions for married couples and individuals; and expand child tax credits.

Trump has said repeatedly on previous occasions that he wants a 15 percent corporate tax rate, but said Wednesday that 20 is the "perfect number" and will be a "revolutionary change" for American business, and by extension, the American worker.

"The biggest winners will be the everyday American workers as jobs start pouring into our country, as companies start competing for American labor, and as wages start going up at levels that you haven't seen in many years," he said.

"I wanted to start at 15 so that we got 20," Trump told reporters prior to departing for Indiana on Wednesday. "It just -- the numbers were -- 15 was so low we didn't take in the revenue. But I wanted 15, so we got 20 -- 20 is my number. So I'm not negotiating that number. I really -- I am not going to negotiate."

In calling for a simplification of the tax code, the president said the current code as a "relic" that is posing a "colossal barrier" to growth.

"It's a relic got to change it we have to compete with other countries the current tax system is a colossal barrier standing in the way of America's economic comeback because it can be far greater than it's ever been," he said.

The plan also provides some relief to the nation's top earners, despite Trump's pledge - and continued insistence - that the nation's wealthiest do not benefit under the plan, which lowers the highest individual rate of 39.5 percent to 35 percent. The administration has said that the House and Senate committees crafting the legislation could choose to add a tax bracket above the 35 percent rate if necessary.

"Our framework includes our explicit commitment that tax reform will protect low-income and middle-income households, not the wealthy and well-connected. They can call me all they want. It's not going to help. I'm doing the right thing. And it's not good for people like me, believe me," the president said Wednesday.