President Donald Trump is considering a sweeping tax cut that could benefit corporations and the wealthy, but it’s not likely to pass Congress, according to a draft outline of the proposed legislation leaked to the media on Wednesday.
The White House outline includes a proposal to eliminate income tax rates on a range of businesses, including businesses that earn more than $10 million in a year and large businesses with a net worth above $10 billion.
The plan would also lower the corporate tax rate to 15% from 35%, with the biggest earners getting the largest cut.
Trump, who is currently trying to push through a sweeping budget proposal that includes spending cuts, has said he would like to see the tax cut enacted in a short period of time.
He said during a press conference Tuesday that the budget plan would be finalized by April 20, but said the White House’s outline “isn’t a timeline, it’s a promise.”
The White of House on Wednesday issued a statement saying it’s still in the early stages of drafting the budget, but that it’s “working hard to get the president’s plan done in the next few days.”
The president has been trying to convince Congress to pass his tax cut plan through a reconciliation process, which allows for a lower corporate tax to be passed through to help balance the budget.
He also has said that he would cut the corporate income tax rate by 15% in order to pay for the tax cuts.
Trump and congressional Republicans have argued that the corporate rate is too high, but they’ve not said how they would cut it.
They’ve proposed increasing the standard deduction, which would allow more people to claim deductions for things like mortgage interest and charitable contributions.
The Tax Policy Center, a nonpartisan think tank, has estimated that the GOP tax plan would reduce the deficit by $1.5 trillion over 10 years.
The Tax Foundation, a Washington-based think tank that has analyzed the GOP proposal, has pegged the GOP plan as costing $1 trillion to $1,200 trillion over the same period.