Trump spoke about several aspects of the plan that are of particular importance to manufacturers.
The president said his plan will act as "rocket fuel" for the American economy, as it incentivizes companies overseas back to the U.S. His new plan tops out taxes for most businesses at 25 percent, and at 20 percent for corporations.
Over a decade, Trump's plan would cut business taxes by $2.6 trillion (the red bars), and lose another $240 billion by repealing estate and gift taxes (the yellow bars).
"Around the world, governments are reducing their business tax rates to better compete for investment and create jobs", said James Pearson, chief executive of the Australian Chamber of Commerce and Industry.
It's pretty astounding to go around talking about the need for a middle-class tax cut and then produce a plan that reserves almost all its benefits for the wealthy while raising taxes on tens of millions of middle-income Americans. While many crucial details are still under debate, the tax plan has greatly exceeded my expectations and promises to drive significant economic growth.
In the remarks, Trump highlighted a provision of the plan that would allow businesses for the next five years to write off the full cost of new equipment in the year it's purchased.
"When we grow American manufacturing, we don't only grow our jobs and wages, we grow the American spirit", Trump said. The United States has the highest corporate income tax rate among the 35 industrialized Organisation for Economic Co-operation and Development (OECD) countries, according to the OECD. "On average, taxes for the top one percent would fall by more than $200,000 or 8.7 percent of their after-tax incomes".
The framework will cap the top marginal tax rate paid by sole proprietors, S corporations, and partnerships to 25 percent.
The second reason is that the Trump plan builds off another GOP canard: the idea that the very wealthy should always benefit the most from tax cuts because the trickle-down effects on the economy of letting them keep more of their money are so positive. Then, it partly makes up for that by raising individual income taxes by $470 billion (blue bars). Under his proposal, mortgage interest and charitable giving would still be deductible.
Trump joined Republican lawmakers this week in announcing the plan, which would be the biggest USA tax overhaul in three decades. The House and Senate must pass the blueprint before lawmakers can tackle the still-developing tax bill.
The proposal released Wednesday "contemplates" that Congress will adopt measures to prevent the wealthy from recharacterizing their income to take advantage of the new, lower rate and avoid the top personal rate.
President Trump called for a "giant, beautiful, massive" tax cut that he said would be "the biggest ever in our country" during a National Association of Manufacturers' board meeting in Washington on Friday.