The US Treasury Department announced Thursday that it has proposed to cut tax rates for corporations and individuals by $2,000 per year.
It would also allow corporations to deduct some of their income from their taxes.
The White House also said it was creating new rules to make it easier for companies to repatriate their profits, but didn’t say how much.
The proposed cuts, which would be phased in over a three-year period, would help spur job growth and economic recovery.
But the new tax reform could hurt businesses, too.
The proposal would eliminate the estate tax, which can be paid only by estates worth $5.9 million or more.
The current tax code has an effective rate of 25% on estates exceeding $5 million.
The tax cuts would boost the economy and help lift millions of people out of poverty, according to a report by the Tax Policy Center, a left-leaning think tank.
But Democrats and some Republicans have argued that these cuts will harm the middle class and the economy.
And a majority of Americans oppose lowering the top marginal tax rate on individuals, and Republicans have complained about the idea of a tax cut for millionaires.
The president’s tax plan also includes tax breaks for homeowners and businesses, as well as a plan to make the estate and gift tax refundable for people making more than $3.9 billion a year.
Trump said in the Oval Office that he has asked the Treasury Department to “work with us to give a tax relief package that will make America great again” and said he wants to cut taxes for all Americans.