Republicans in Congress have begun pushing a tax plan that would sharply reduce taxes for some high-income earners.
A Republican aide said Tuesday that Sen. Jeff Flake (R-Ariz.) will introduce a bill on Thursday that would eliminate the alternative minimum tax (AMT), which currently levies a 20 percent tax on taxable income over $418,000, and would replace it with a flat tax of 15 percent on incomes over $200,000.
The aide added that the Senate plan would raise $1 trillion over 10 years, with most of the revenue coming from the elimination of the AMT.
That would make the bill a big win for Senate Majority Leader Mitch McConnell (R) (R), who has said he wants to pass a tax overhaul by year’s end.
Flake’s bill is expected to include a tax on imports that could add billions to the deficit, which is one of the main sticking points in negotiations over the bill.
The bill would also eliminate the estate tax, which applies to estates worth more than $5.45 million.
Other provisions included in the proposal include an expansion of the child tax credit and a repeal of the Alternative Minimum Tax.
The GOP bill would add another $1.5 trillion in revenue to the economy over 10 year, according to the Congressional Budget Office.
Trump’s administration is still negotiating the details of the tax package, and the White House said Tuesday it would not provide a timeline for its expected release.
The tax plan is also expected to contain other revenue increases, including a tax credit for people who buy insurance on state exchanges and a tax break for small businesses that hire part-time workers.
Republicans and Democrats are working toward an agreement on how to fund the government during a partial government shutdown that could take place as early as this week.
Trump has said the shutdown could take two weeks to resolve, and Democrats have repeatedly argued that the tax cuts would be needed to help the economy through the shutdown.
The president has said that he would support the tax plan if it came from Congress.
“If it comes from Congress, I will absolutely support it,” Trump said Tuesday.