President Donald Trump’s proposed cuts to taxes for most Americans will expire at the end of the month, with some estimates that a majority of the tax cuts could disappear entirely.
The President announced the measures in February.
The House and Senate are expected to take up their own versions of the legislation on Wednesday, before Trump leaves office in early January.
The White House estimates that more than 70 million people would see their taxes rise under the legislation, while most of the cuts would be offset by cuts in federal spending.
The Senate tax bill has a number of provisions that are intended to help low-income households, including a refundable tax credit that would be available to individuals making between $200,000 and $1 million.
The proposal also provides $100 million to help states expand Medicaid.
The president has also promised to give tax cuts to individuals earning less than $500,000 a year, and he’s called on Congress to approve a $1 trillion tax cut package by early January, which is not expected to pass.
In a letter to Senate Majority Leader Mitch McConnell on Wednesday morning, Trump said that while some of the bills could be eliminated or extended, he is confident that he can secure tax relief for the middle class.
“If we are able to accomplish this, it will be the biggest tax cut in American history,” he wrote.
“I believe that there will be bipartisan support for this,” Trump wrote.
“There is no reason we can’t achieve this.
But, at the same time, the Senate is working to secure a deal that is as good for America as possible.”
The Trump administration is also counting on the Congressional Budget Office to estimate the effects of the proposed cuts on economic growth and job creation.
The Congressional Budget Board is the independent group of economists that is responsible for producing estimates for the federal budget.
The CBO has said that the Trump plan could reduce the economy by 1.8 million jobs, but that it would be a relatively small reduction.
The group has projected that the tax bill would reduce economic growth by about 0.5 percent, or $1.4 trillion over the next decade.
While Trump has said his tax cuts are intended for Americans earning $250,000 to $1,000,000 annually, some analysts have questioned whether the cut for middle-class Americans will be sufficient.
The top tax rate on the top 1 percent of earners, which currently is 39.6 percent, is set to rise to 39.7 percent starting in 2025, but the Trump administration has not provided a specific figure for how much of that increase would go to the top one percent of households.
According to the Joint Committee on Taxation, the tax cut for individuals would cost $6,600 over a 10-year period, but only a small portion of that would go toward paying for the tax reduction.
In contrast, the proposal to eliminate the alternative minimum tax for all income over $200 would cost more than $5,000.
The Joint Committee estimates that the cost of the plan would be $20.3 trillion over 10 years.
Trump’s plan includes a number “emergency provisions” that will help lower the burden on low- and middle-income Americans, including the elimination of the estate tax, a tax on pass-through income that pays lower tax rates to businesses and individuals, and an end to a provision that imposes a 20 percent penalty on individuals who fail to file their federal income tax returns.
The administration has also proposed that the individual tax credit be extended for the second time in the Senate bill.
The administration’s proposals for reducing the federal deficit also include eliminating the estate and alternative minimum taxes, a provision designed to provide a refund for taxpayers who do not file their tax returns for tax years prior to 2025.
In addition, the White House proposes to extend the child tax credit for up to two years.
The Republican Party has not yet endorsed the president’s plan.