By LUCAS GALLAN, Reuters U.S. House Speaker Paul Ryan and Senate Majority Leader Mitch McConnell are expected to unveil a package on Wednesday to slash taxes and overhaul the U.K.’s social safety net to keep Britain’s economy humming.
But the details of how it will happen, and what it will cost, remain vague.
The two Republican leaders who oversee the $15 trillion federal budget will hold a news conference at 2 p.m.
EDT in the Capitol to announce details.
The House Ways and Means Committee is expected to hold its own news conference later in the day.
The Senate Finance Committee is set to hold a hearing later on Wednesday.
There will be more than 50 GOP members on the committees, and the GOP leaders are expected make their announcement in separate events.
If the tax cuts are approved, the plan would lower the top rate on top earners to 33 percent from 39.6 percent, the lowest in the industrialized world.
The top rate would also be reduced to 25 percent from 28 percent and would no longer apply to couples with children.
The tax cuts would be phased in over a decade and would apply to most households with incomes from $200,000 to $400,000.
The plan would also lower the corporate tax rate from 35 percent to 21 percent.
Ryan said earlier this week that he has made his support for the plan contingent on the tax relief coming to the top 2 percent of earners.
Democrats are demanding that Republicans drop the tax hikes for the wealthy, including the rich on the richest Americans and the wealthy on families earning more than $1 million.
Under the GOP plan, the top earners would not have to pay income tax.
Trump is expected at the news conference to outline his tax plan.
But his spokesman Sean Spicer, in a statement released late Wednesday, said the president is “not offering any details about his plan to cut taxes for the middle class and reduce the burden on middle-class families and individuals.”
Ryan has been pushing to keep the U to the 20-percent tax rate he proposed on individuals earning $1.9 million or more and the top .01 percent, which he called the “middle class tax cut.”
That would be a dramatic reversal from President Donald Trump, who wants to end the top tax rate to 25%.
But the tax plan does not include the 20 percent tax cut for people earning less than $2 million.
Under Ryan’s plan, that tax cut would be extended for people who earn between $200 and $400 in 2017, 2018, 2019 and 2020.
The 20 percent rate would be gradually phased out over five years.
House Democratic Leader Nancy Pelosi is demanding that the House vote on a $15-trillion package of tax relief and the end to the estate tax, the corporate income tax and other deductions that are a source of revenue for many lower- and middle-income households.
“This is the wrong time for Republicans to propose tax breaks for the rich and middle class,” Pelosi said in a Tuesday statement.
“Republicans have failed to take a strong stand for working families and those who rely on Social Security, Medicare and Medicaid and for those who are struggling to make ends meet, like millions of Americans.”
The House GOP plan is expected be released by the end of the week.
The plan would add $3.9 trillion to the national debt, according to the Congressional Budget Office, with the vast majority of that money coming from a $1 trillion boost to defense spending.