Trump tax plan leaves Congress, Ryan with heavy lift

Treasury Secretary Steven Mnuchin has asserted a few times that the tax plan will pay for itself by generating a lot of growth because the proposed changes will spur investment and create jobs.

"He understands that there are a lot of people who work hard and feel like they're not getting ahead", said Gary Cohn, director of the White House National Economic Council.

Regardless of its exact ranking in history, Trump's tax plan has raised concerns among budget hawks as to how the government will be able to make up for such a large drop in revenue. These are key Republican goals that would require lawmakers to eliminate or reduce precious tax breaks enjoyed by millions of Americans.

"The top 10% of income earners pays over 90% of the tax, with over one-fourth paid by the richest 0.1%", the Tax Policy Center says. The current rate is 28% for income that qualifies, and it hits individuals who otherwise would benefit from a sharply lower effective tax rate because of deductions.

The Republican tax-cut plan is created to reduce the tax burden for the very rich, and, since this is a highly unpopular thing to do, Republicans are going to spend a lot of time lying about it. Treasury Secretary Steve Mnuchin was dispatched to do the round of morning shows, and his first attempt at lying did not go especially well. But especially on the business side, Trump's plan lacks numerous details needed to make the numbers work.

The first is his call to slash the business tax rate on pass-through entities to 15% from 39.6%.

Retailers and other big importers have railed against the proposed tax, saying it would lead to higher prices for consumer goods.

The estate tax, which is also known as the death tax, affects people who inherit wealth or businesses worth more than about $5.5 million. He did say the administration would work with House Republicans to make the new tax more acceptable. The top tax rate for many small business owners would be reduced from 39.6 percent to 15 percent. Congressional Budget Office scoring of a formal Trump tax reform proposal will likely show enormous trillion dollar deficits with swollen debts.

"We've been briefed on what they're going to do and it's basically along exactly the same lines that we want to go, so we see this as progress being made", Ryan said. "The same trickle-down economics that undermined the middle class are alive and well in the president's tax plan", said House Minority Leader Nancy Pelosi, D-Calif.

"If you want to get it done by the end of the year, and that's what the administration has said over and over again, you're going to have to come up with details pretty quickly", he added.

About 70 percent of taxpayers take the standard tax deduction when they file their taxes. The reform would eliminate itemized deductions other than the charitable contribution and mortgage interest deductions, and would double the standard deduction. However, the proposal did not disclose the income ranges for the new tax brackets.

Trump would eliminate the estate tax, which only affects inheritances larger than $5.5 million for individuals and $11 million for families and could save his children tremendous amounts of money. Numerous remaining 30% who itemize, largely higher income households, would likely switch to the standard reduction, leaving only about 5% itemizing, he says.