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Donald Trump just made a major change to his tax plan

Donald Trump shifted his tax proposal Monday, calling for a top income tax rate of 33 percent rather than a past plan for 25 percent.

Larry Kudlow, a CNBC contributor and informal adviser to the Republican presidential nominee Trump, said the move would help to reduce federal deficit growth during his presidency. Trump, who delivered a crucial economic address Monday, had fueled concerns about a ballooning deficit with across the board tax cuts.

The top income tax rate is currently set at just under 40 percent. Trump said Monday he will use three income tax brackets of 33 percent, 25 percent and 12 percent. Prior analyses of Trump's original tax plan, which included broad personal and business tax cuts, said it could expand the U.S. deficit by as much as $10 trillion over a decade.

Republican presidential candidate Donald Trump delivers an economic policy speech to the Detroit Economic Club, Monday, Aug. 8, 2016, in Detroit.
Evan Vucci | AP
Republican presidential candidate Donald Trump delivers an economic policy speech to the Detroit Economic Club, Monday, Aug. 8, 2016, in Detroit.

Kudlow claimed that tweaks to Trump's tax plan could reduce that number to less than $3 trillion. The Trump campaign said Monday it would keep its previous proposal to cap business taxes at 15 percent regardless of business size.

Trump used the speech to contrast his economic vision to that of Hillary Clinton. Clinton has proposed tax increases on wealthy Americans.