President Donald Trump is planning to overhaul the tax code by making it easier for companies to deduct the value of investments, while also reducing the tax rate that companies pay on income earned overseas.
Trump has also proposed eliminating the alternative minimum tax, which is levied on a portion of all wages earned in a given year, and the alternative-minimum tax credit, which gives some employers tax breaks if they give employees more than a certain amount of money to spend.
The tax proposals are expected to be finalized in the coming weeks.
The White House is also expected to announce some major changes to the tax system, including a new 15% tax bracket that would apply to many income-producing investments.
It would not apply to investments that are held for a longer period, such as real estate, or investments that have been held for more than 10 years.
That would also mean that those investments would not be subject to the capital gains tax, the income-tax bracket, which can be very high for low-income people.
The plan also would make it easier to file a federal tax return.
It is also estimated that eliminating the tax break for capital gains would add $1 trillion to the federal deficit, according to a recent analysis by the nonpartisan Tax Policy Center.
The Tax Foundation, which advocates for a more progressive tax system in the United States, says the tax cuts will reduce the federal debt by $1.2 trillion.
The president also has proposed eliminating a deduction that helps people who earn more than $1 million to pay for their healthcare.
Under the plan, the tax deduction would be phased out over 10 years, meaning the tax benefits would decrease as income rises.
Trump also is proposing to increase the minimum wage from $7.25 to $10.10 an hour.
The proposal is estimated to cost the federal government about $5 billion per year.
It also would end the deduction for state and local taxes.
Trump’s proposal to phase out the corporate tax rate has also been criticized as a giveaway to the wealthiest companies.
The proposed cuts would eliminate the tax rates on many corporations’ overseas profits and dividends.
Trump is also planning to repeal the estate tax, a tax that is estimated at $5.9 trillion.
It will also eliminate the alternative rate for business income, which applies to a portion or all of a corporation’s income earned abroad.
The estate tax also has been criticized by economists and consumer advocates.
The federal estate tax is a federal estate-tax exemption that helps pay for programs such as Social Security, Medicare and unemployment insurance.
It can be passed on to future generations through the death tax, but it is not a progressive tax, and its repeal is expected to cause more pain to the middle class and the poor.
Trump proposed a new tax credit of $10,000 for people who invest in a company that employs more than 100 people.
It could also apply to a business that provides healthcare to people at a lower income.
In addition, the White House estimates that repealing the Alternative Minimum Tax would increase the deficit by $8.2 billion over a decade.
That is because many companies that have low- and middle-income employees pay the tax, while they earn money in the form of interest, dividends and capital gains.
That can create a financial incentive for companies that would otherwise be able to invest in productive investments.
Trump plans to make the proposed changes to his tax plan and the rest of his tax reform agenda in the next few weeks, according in a statement.
“Today’s announcement marks a major milestone in our effort to address our biggest challenges and restore fairness to our tax code,” White House press secretary Michael Short said in the statement.
The Associated Press contributed to this report.