President Trump told reporters at the World Economic Forum in Davos on Tuesday that the White House plans to unveil a new middle class tax cut proposal in 90 days.
That timeline would mean the tax plan would be released just in time for tax-filing season.
"We've done more than anybody in three years. We are going to be doing a middle-class tax cut, a very big one. We'll be doing that. We'll be announcing that over the next 90 days,” President Trump told Maria Bartiromo, a Fox Business anchor during a Davos interview.
He echoed that sentiment to other journalists. "We're talking a fairly substantial ... middle-class tax cut that'll be subject to taking back the House and obviously keeping the Senate and keeping the White House.”
Trump declined to provide specifics about the plan.
But reducing the 22% marginal rate to 15%, an idea that policy analysts have floated, would deliver a $770 billion tax cut through 2025, according to analysis from the Tax Foundation, an independent tax policy research group. The concern with that cut, however, is that benefits to the middle class may be less than stellar, since the majority of their income is not taxed at the 22% rate.
If cutting the rate doesn’t accrue to the middle class, the White House should look at “broadening eligibility for refundable tax credits as a more direct route for a middle class tax cut,” Daniel Bunn, director of global projects at the Tax Foundation said.
The White House has been saying for several months that they plan to release a proposal for a middle-class tax cut as Trump runs for reelection. The exact contents of the package are still being discussed.
White House National Economic Council Director Larry Kudlow said the proposal could be unveiled "perhaps sometime later in the summer."
Trump first said he's planning legislation for a middle-income tax cut in September last year.