Republicans unveil their long-awaited plan for tax cut reforms

WASHINGTON, D.C. -- We knew it was coming, and it`s finally here. Sort of....

"This is a once in a generation opportunity and I guess it`s something I can probably say I`m very good at," President Donald Trump told an Indiana crowd.

Republicans have unveiled their long-awaited tax reform plan. It`s more like a framework, really. It`s light on the nitty-gritty details, but it`s supposed to give us an idea of where the authors are going with this legislation.

"On average, this tax plan would lower the tax burden," says University of Houston Professor of Economics, Steven Craig.

The plan seems to affect the wealthy, the middle class and businesses the most.

"Clearly the Trump administration is hoping this is going to stimulate the economy," says Craig. "That`s the rationale. There`s some justification, but the stimulus is muted because of the bigger deficits that result."

The plan reduces the number of individual income tax rates from seven to three.  "That always sounds great. It`s a danger because the future debt is going to matter at some point."

For corporations, the plan wants to cut the tax rate to 20 percent from 35 percent.  "So that American companies and American workers can beat our foreign competitors and start winning again," says Trump.

"As a country, our goal should be about the corporate tax is to have a level playing field," says Craig. "You don`t want to help some companies at the expense of other companies or some industries at the expense of other industries."

The plan also proposes reducing the number of itemized deductions, but preserve those that encourage buying homes and giving to charities. "So this affects the top income earners.  Economically, the most important thing is, do we want to cut taxes in an era when we`re already running large federal deficits? So this means government borrowing is going to increase more."

Clearly, it`s too soon to know what the final legislation will look like. It`s still being fleshed out by the GOP. But don't forget, democrats will eventually want to weigh in, too.

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