The Republican tax proposal unveiled Wednesday outlines ways that lawmakers plan to reduce what businesses and individuals pay to Uncle Sam, yet it offered few clues about how they would pay for it all.
In addition to calling for a reduction in the rates that corporations and small businesses pay, the framework would double the standard deduction for individual taxpayers, repeal the alternative minimum tax and estate tax, increase the child tax credit, and collapse the current seven personal tax brackets to three, among other provisions.
The cost of all this? An estimated $2.2 trillion over 10 years, according to the Committee for a Responsible Federal Budget. The group says $5.8 trillion would be lost to lower rates and other modifications, and would be offset by $3.6 trillion coming from eliminated tax breaks.