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Almost three-quarters of Americans believe tax system favors the wealthy

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Republicans argue that the tax cuts would be offset by new revenues raised from eliminating tax loopholes and would drive more robust US economic growth, predictions that critics are sure to question.

By refusing to specify on Wednesday which tax breaks could be jettisoned, GOP leaders make a calculated effort to try to postpone any backlash while they try to build a coalition. That's not as low as Trump wanted, but is still a huge reduction, to the lowest top rate since 1940.

The only way to make the magic math of the tax cuts work is to take money away from programs that help people at the bottom of the economy and redistribute it to the people at the top.

Another big change for companies would be a limitation of the deductibility for corporate interest expenses in exchange for the opportunity to immediately expense business investments. He said the United States has the highest business tax rate in the world and that causes business leaders to outsource jobs from overseas.

The president, who previewed his plan Tuesday with bipartisan members of the House Ways and Means Committee, said his plan is based on four principles: making the tax code simple and fair, cutting taxes "tremendously" for the middle class, lowering the tax rate for businesses and "bringing back trillions of dollars in wealth parked overseas".

For individuals, there is much less clarity.

Corporations would see their top tax rate cut from 35 to 20 percent. Many details will need to be worked out, including limits on pass-throughs, limits on corporate deductions, and income levels for different tax brackets.

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The lowest tax bracket would increase from the current 10 percent. A repeal of the estate tax. It doubles the standard deduction and increase the child tax credit.

The perk - first enacted with the income tax in 1913 - is most heavily used in coastal, bluer states that include New York, California, New Jersey and CT. Trump's plan would eliminate most itemized deductions, with the exception of deductions for mortgage interest and charitable donations. That's because the proposal also almost doubles the standard deduction and increases the child tax credit. Among those that would remain are the prized tax credit for research and development and the low-income-housing credit, which many Democrats support.

After more than eight months of negotiating, the White House and GOP leaders have agreed on several targets for the tax cuts.

"We're going to introduce a tax plan that's the largest tax cut, essentially in the history of our country", President Donald Trump said Wednesday outside the White House.

Tax reform has become a major theme of unity for the Republican Party amid rising frustration among conservative lawmakers who have failed to repeal and replace Obamacare.

The tax plan was created by the so-called "Big Six:" Treasury Secretary Steve Mnuchin, National Economic Council director Gary Cohn, House Speaker Paul Ryan (R-Wisc.), Ways and Means Committee Chair Kevin Brady (R-Texas), Senate Majority Leader Mitch McConnell and Finance Committee Chair Orrin Hatch (R-Utah). But the rate cuts for businesses and individuals are sure to add to the nation's mounting debt.

The lack of agreement, days before the plan is set to be unveiled more broadly, underscore the hard Republicans face in uniting behind a tax bill.

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