Trump's plan calls for slashing taxes on businesses, the wealthy

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And even that small group - known as the Big Six - took a long time to reach broad agreement.

President Trump said Sunday the White House has "totally finalized" a tax plan, but the particulars differed substantially from what has been reported about the proposal.

He went on to say his administration is working on tax cuts and reform that are aimed at creating jobs in the US for citizens.

As it stands now, it's impossible to calculate exactly how Americans' tax bills could change as a result of tax reform.

Without some method of compensating for the loss of tax revenue, the nonpartisan Tax Foundation estimated that Trump's tax plan would reduce the total amount of money coming into the government by approximately $5 trillion over the next decade.

"The focus is very much on growth, so that we can keep more jobs in the U.S., bring more jobs back to the U.S., and see an increase in wages and create a level playing field for U.S. companies compared with competitors around the world", the senior administration official said.

Trump said Sunday that he believes the plan - that he's been advocating in road show events - will pass.

Senate Minority Leader Chuck Schumer - who has said Democrats want to prevent tax legislation from benefiting the top 1 percent - went on the offensive Sunday. "I'm doing the right thing". "It will be the largest cut in our country's history", he said.

Gary Cohn, the president's top economics aide, says any overhaul signed by the president needs to include these two elements. That's good for everyone. It would owe the USA government another 15 percent ($150,000) in order to bring the total tax paid on the $1 million of income to the US 35 percent tax rate.

-Businesses whose income "passes through" to owners (the model for about 95 percent of all businesses) would be subject to a new tax rate of 25 percent, as opposed to the higher individual rate now assessed. Some fiscal hawks are concerned about passing a massive tax plan and relying mostly on anticipated economic growth to fulfill the budget gap.

The framework calls for reducing the corporate tax rate and collapsing the seven current tax brackets into three, among other changes. The proposal also gives committees the flexibility to create a fourth bracket that could potentially eliminate a potential tax cut for the wealthiest Americans.

The tax reform plan would decrease the current seven personal tax brackets to three - 12, 25 and 35 percent - and almost doubles the standard deduction. Trump sought to justify the shift on Wednesday, saying that he only floated 15% as a negotiating tactic.

Mr. Neal said he favored keeping the top rate at 39.6% and wanted to see distribution tables, or estimates of how each income group would fare in the plan.

The plan, obtained by The Associated Press, says the Trump administration and Congress "will work together to produce tax reform that will put America first".

The White House is now aiming to push tax reform through Congress by the end of the year.

Trump and his Republican allies made completing a tax overhaul in 2017 a top promise of the 2016 election campaign and are under mounting pressure to finish the job since the failure of the latest Republican effort to overturn the Obamacare healthcare law. Democratic Indiana Sen. Joe Donnelly, whose up for re-election next year, will also join Trump in a bipartisan showing.

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