The Trump administration on Friday announced a major effort to repeal the Affordable Care Act and overhaul the tax code in the coming months, as Democrats ramp up their efforts to slow down the GOP effort.
The Trump administration said it would be creating a $1.5 trillion budget blueprint that would outline the strategy for the new GOP tax bill.
The president would be tasked with laying out the details of the budget blueprint as the two sides negotiate on the details.
It is expected to be finalized in the spring, according to the budget proposal.
The White House said the budget would be the “largest legislative accomplishment in American history.”
The budget would focus on the “fundamental principles” of the GOP tax plan, according the document.
The White House also said the plan would be a “major boost to American jobs.”
The administration has long sought to eliminate the ACA, a key piece of President Donald Trump’s agenda that he and the GOP have been pushing since January to repeal.
The administration’s plan would eliminate a number of key elements of the ACA including:•The individual mandate, which requires Americans to purchase health insurance or pay a penalty.•The taxes on health care, including the excise tax on high-income earners and the tax on medical devices.•Some tax deductions, such as the deduction for interest payments and charitable contributions.•Reductions in Medicaid funding.•A cut to the corporate tax rate.
In addition, the administration would seek to eliminate:•All tax breaks that provide a deduction for premiums paid by employers and individuals.•Tax credits that provide lower tax rates for low- and middle-income Americans.
The budget document would also outline a range of other tax cuts that the White House is targeting in the plan.
The plan would also cut the corporate income tax rate from 35 percent to 20 percent, and eliminate the estate tax, which would be repealed by Trump’s second term in 2020.
The tax bill would also remove the estate-tax exemption, which provides the president with a tax deduction for estates over $3.49 million.
The document also said Trump’s plan “will increase revenue and reduce deficits,” and that it would raise $2.2 trillion over 10 years, “providing billions of dollars in tax relief.”
The Trump budget would also repeal the estate and personal income taxes.
The Congressional Budget Office estimated the budget plan would cost the government $1 trillion to $2 trillion, with the biggest reductions coming in the tax cuts for low and middle income Americans.