President Donald Trump wants to slash individual tax rates -- cutting the top rate from 39.6% to 35% -- and reduce the number of total rates from seven to three. He also wants to cut the top tax rate for all businesses to 15%, far below the current top rates.
Some GOP aides suggest that the White House -- with its emphasis on tax cuts and too few details on how they'd be paid for -- is not constructively contributing to a serious discussion of tax reform. "It's not tax reform," one senior GOP aide told CNN. "Not even close."
Trump's proposal calls for reducing the number of tax brackets from seven to three for individuals, which would be set at 10%, 25% and 35%. Today's rates are 10%, 15%, 25%, 28%, 33%, 35% and 39.6%.
The proposal also calls for doubling the standard deduction. Treasury Secretary Steven Mnuchin said that the new tax proposal will offer "the biggest tax cut and the largest tax reform in the history of this country."
Trump wants to slash the top tax rate for all businesses to 15%, as he proposed during the campaign. That's well below the top rate of 35% for corporations today, although the real top rate they pay is less after tax breaks.
A drop to 15% would also be a huge drop from the 39.6% top rate paid by owners and shareholders of so-called pass-through businesses. Those run the gamut from mom-and-pop shops to law firms and hedge funds. In a pass-through business, the owners and shareholders report profits on their personal tax returns.