Also, individual tax brackets would be condensed from seven to three with the highest rate at 35 percent, down from the current 39.6 percent.
Under the current system, companies based in the USA are taxed on profits they earn anywhere in the world.
The plan would retain existing tax benefits for college and retirement savings such as 401 (k) contribution plans. Trump's speech Wednesday comes the same day that Republicans are set to release some details of their plan.
But the "small business" tax cut in the Republican proposal is not really aimed at small businesses.
Speaking from the Indiana State Fairgrounds Wednesday afternoon, President Trump officially rolled out his plan to overhaul the American tax system and urged voters to call their congressmen in support. Their top legislative priority, overhauling the U.S. healthcare system, collapsed again in the Senate on Tuesday. "Lawmakers will have to be bold and creative in identifying tax preferences to be eliminated, in order to make the math work". The last one was passed in 1986 under Republican President Ronald Reagan.
"If Sen. Donnelly doesn't approve it - because you know he's on the other side - we will come here, we will campaign against him like you wouldn't believe", Trump said, pointing at Donnelly in the audience before suddenly offering a wide grin.
Brady has said the legislation will be put forward after the House and Senate enact their budget frameworks.
Trump said Tuesday some of the components included doubling the standard deduction used by individuals and married couples, and increasing the child tax credit. Early details obtained by NBC News reveal that the large tax breaks for corporations and individuals will be an expensive endeavor.
While members of Trump's own administration have suggested that Trump's position on the corporate rate might be subject to compromise, the president may yet resist a plan with a rate higher than 15 percent, one person familiar with the matter said.
The Trump administration and congressional leaders today released a joint framework for tax reform. The plan is reported to cost an upwards of $5 trillion dollars and has been described by his officials as "completely designed with the middle class in mind".
In a sign a move like this could cause havoc within Democratic congressional ranks, Senate Minority Leader Chuck Schumer (D-NY) responded to Trump readdressing the elimination of the estate tax in a conference call with reporters a week after his rally in North Dakota. Speaking with conservative groups at the White House yesterday Trump, reassured them of his commitment when he gushed about the "tax cut" he was planning to unveil.
Repealing it would increase federal revenue by $1.3 trillion over the decade, according to the Tax Policy Center.
Analysts have warned huge tax cuts would balloon the deficit if economic growth projected by Republicans to offset the costs fails to materialise amid rising interest rates.
U.S. economists are increasingly anxious about risks to the economy, though they see little chance of a recession near term. In 2005, he paid a total tax rate of about 24% on $150 million of income; without the AMT, he would have paid less than 4%.
So, assuming Republicans use those same bracket thresholds, and accounting for their proposal for a $12,000 standard deduction, this "small business" tax preference won't help you at all unless you're in the top income tax bracket. "And we are going to bring back the jobs and wealth that have left our country and most people thought left our country for good".