- Corporate tax to be slashed from 35 per cent to 15 per cent
- Top rate cut for individuals from 39.6 per cent to "mid-30s"
- Individual tax brackets reduced from seven to three
- US stocks hover near record amid optimism
- Family on $60,000 will pay less tax
- Cuts would wipe out more than $600 billion a year in revenue
- Cuts to be paid for by 3 per cent growth boom
- Plans presented by Steve Mnuchin and Gary Cohn
President Donald Trump offered relief for the American middle class as part of what the White House called "biggest tax cut in history" as he approached 100 days in office.
Mr Trump's sweeping and ambitious tax reform plan met a campaign promise to reduce taxes and was expected to be widely welcomed by middle income earners who backed him in the election.
Asked what the announcement would mean for a family on $60,000 a year Gary Cohn, Director of Mr Trump's National Economic Council, said: "It means a tax cut."
He added: "We will continue to give you more details as we have them. We have a once in a generation opportunity to do something really big."
The plan included a doubling to $24,000 of the amount a married couple could earn before being taxed.
Mr Cohn said: "In essence we are creating a zero tax rate, yes, a zero tax rate, for the first $24,000 a couple earns.
"Families will benefit from tax relief that will help them with child and dependent care expenses."
Middle class taxpayers would also benefit from a simplification of the tax code, he said.
Seven individual tax brackets will be reduced to three - 10 per cent, 25 per cent and 35 per cent.
Mr Cohn said far fewer tax payers would need to itemise deductions so they could go back to filing one their returns on one simple page rather than the current system which was too complicated for many to understand.
Amid the warnings that the cuts would lead to ballooning deficits Mr Cohen and Steve Mnuchin, the Treasury Secretary, said they would be paid for by economic growth, with an annual rate of three per cent being "very achievable". Reducing tax deductions and closing loopholes would also help pay for it.
Mr Cohn said: "Job creation and economic growth is the top priority of the administration. This is about growing the economy and growing jobs. President Trump talks to the two of us every day to see what we're doing to stimulate economic growth."
Mr Mnuchin said: "Will it pay for itself? We're working on details, we have over 100 people at the Treasury working on scenarios. "The debt went from $10 to $20 trillion in the last administration. The Trump plan will grow the economy and create massive amounts of revenues, trillions of dollars. We are at a historic moment."
The plan also included slashing corporation tax from 35 per cent to 15 per cent, and abolishing the death tax.
Mr Mnuchin said: "Our objective is to make US businesses the most competitive in the world."
Republicans in Congress welcomed the plan, but as a starting point with room for negotiation.
Senator Orrin Hatch of Utah, chairman of the Senate Finance Committee, said: "I actually believe it could stimulate the economy. Now, whether 15 per cent is the right figure or not for corporate tax that's a matter to be determined."
Democrats attacked the plan as one that would benefit the rich. Chuck Schumer, the Senate Democratic leader, said: "If the president's plan is to give a massive tax break to the very wealthy in this country, a plan that will mostly benefit people and businesses like President Trump's, that won't pass muster with Democrats."
The Committee for a Responsible Federal Budget, a group focused on reducing deficits, said Mr Trump’s tax plan was more likely to increase growth by 0.2 percentage points, rather than higher estimates made by the White House. It said: "These tax cuts, of course, would not pay for themselves."
Democrats also called for Mr Trump to release his own tax returns to see if he would benefit.
But Mr Mnuchin said: "The president has no intention. The president has released plenty of information and I think has given more financial disclosure than anybody else. I think the American population has plenty of information."
The plan was welcomed by corporate leaders. But AT&T chief executive Randall Stephenson said: "The practical reality of getting to 15 percent is you have to get yourself reconciled to some level of deficits for a period of time as you get the economic stimulation."
Tax experts said the plan would benefit hedge funds. Robert Willens, an independent tax consultant, said: "For hedge funds this is an unmitigated benefit as their tax liabilities could drop significantly. Obviously, they are quite enthusiastic and there may be a few fist bumps along the way."
Others warned it could cause interest rate hikes by the Federal Reserve.
Republicans call plan a 'critical guidepost'
House and Senate Republican leaders said Mr Trump's outline to overhaul the tax code would act as a "critical guidepost"..
In a joint statement Senate Majority Leader Mitch McConnell and House Speaker Paul Ryan praised lower tax rates for families and businesses.
They said they were confident they can work with the White House to rebuild the tax code in a way that will grow the economy, promote savings and investment, and "bring prosperity to all Americans".
Critics question growth forecast
The Committee for a Responsible Federal Budget, an advocacy group focused on reducing deficits, said that Mr Trump’s tax plan was more likely to increase growth by 0.2 percentage points than by the higher estimates Mr Mnuchin forecast.
"These tax cuts, of course, would not pay for themselves,” the group said in a statement. “As we’ve explained before, there is little evidence to suggest any major tax cut could pay for itself with economic growth alone."
Trump says tax plan will 'put people back to work'
After the plan was unveiled by Mr Mnuchin and Mr Cohen the president, speaking at the White House, said: "It's a great plan. It's going to put people back to work."
Mnuchin says president will not release tax returns
Mnuchin said: "The president has no intention. The president has released plenty of information and I think has given more financial disclosure than anybody else. I think the American population has plenty of information.
An end to shoe boxes full or receipts?
This from Stephen Moore of the Heritage Foundation: "90 per cent of people won't go for the itemised deductions and will go for the new standard deduction. So they won't have to keep shoe boxes full of receipts any more.
"It will also put more money in people's pockets."
Tax cut for a family on $60,000
Finally, what most people really want to know.
Cohn has been asked: "What does this mean for a family on $60,000?"
His response is clear - "It means a tax cut."
He adds: "We will continue to give you more details as we have them."
That's what millions of people in America will take away from this announcement.
It's all about growth
Mnuchin and Cohn believe 3 per cent annual economic growth can be achieved to pay for the tax cuts.
Cohn said: "This is about growing the economy and growing jobs. President Trump talks to the two of us every day to see what we're doing to stimulate economic growth."
Mnuchin said: "Will it pay for itself? We're working on details, we have over 100 people at the Treasury working on scenarios.
"This will pay for itself with growth and closing deductions and loopholes. The deficit went from $10 to $20 trillion in the last administration/
"The Trump plan will grow the economy and create massive amouns of revenues, trillions of dollars. We are at a historic moment."
Death tax to be eliminated
The plan says there will be an end to the deeply unpopular estate tax.
'Massive' tax cut for businesses
Business rate to go from 35 per cent to 15 per cent.
Cohn says it was 34 per cent when Ronald Reagan left office and it "hasn't changed much since".
He said: "Other countries have been aggressively cutting to attract businesses.
"We are stuck with a 1988 corporate tax and are one of the least attractive countries in the developed world.
"We are going to cut taxes to make businesses competitive and cut them for low and middle class families."
Tax cuts for married couples
The standard tax deduction for a married couple will be doubled to $24,000 .
Tax code to be simplified
Cohn says the seven individual tax rates will be reduced to three - 10 per cent, 25 per cent and 35 per cent.
Gary Cohn: 'Once in a generation' chance
Gary Cohn is speaking first at the White House.
He said: "We have a once in a generation opportunity to do something really big."
He calls it "one of the biggest tax cuts in American history".
More backlash from Democrats
Chuck Schumer, the Senate Democratic leader, slammed the plan and took a jab at Mr Trump.
He said: "If the president's plan is to give a massive tax break to the very wealthy in this country - a plan that will mostly benefit people and businesses like President Trump's - that won't pass muster with we Democrats."
Democrats ask how will Trump pay for it?
Senator Ron Wyden of Oregon, the top Democrat on the Senate Finance Committee, said: "I'm particularly struck by how some of this seems to be turning on its head Republican economic theory."
Senator Bob Casey, a Democrat from Pennsylvania, said: "There's no question we should try to reduce the corporate tax rate but I don't see how you pay for getting it down that low - 15 per cent, that's a huge hole if you can't make the math work."
Republicans in Congress 'open' to Trump plan
The president sent his team to Capitol Hill on Tuesday night to discuss his plan with Republican leaders.
Senator Orrin Hatch of Utah, chairman of the Senate Finance Committee, said: "They went into some suggestions that are mere suggestions and we'll go from there."
Under the Obama administration Republicans slammed the growing national debt.
They are open to Mr Trump's plan even though, under some estimates, it risks adding trillions of dollars in debt over the next decade.
Mr Mnuchin says that will offset by economic growth.
Senator Hatch said: "I'm not convinced that cutting taxes is necessarily going to blow a hole in the deficit.
"I actually believe it could stimulate the economy and get the economy moving. Now, whether 15 per cent is the right figure or not (for corporate tax) that's a matter to be determined."
Tax reform 'will not slip into 2018' says White House
This from Marc Short, Mr Trump's director of legislative affairs - he says the White House's presentation will be "pretty broad in the principles".
In the coming weeks Mr Trump will solicit more ideas on how to improve the tax reform plan, Short said. The specifics should start to come this summer.
He said the administration did not want to set a firm timeline after demanding a quick vote in Congress on a health care bill and then watching it fail.
But Mr Short added: "I don't see this sliding into 2018."
Cautious welcome from markets
Just ahead of the announcement US stocks were little changed.
Some analysts said investors were aware of the long road ahead before a bill is passed.
Andre Bakhos, managing director at Janlyn Capital, said: "We have a pretty good idea that he (Trump) is targeting lower corporate taxes, lower individual taxes and a simplification of the process, but all that is in an ideal world.
"The market will not interpret the plan negatively but there are obstacles in that course, just like with anything that Trump says and does."
Republicans say plan a good starting point
Republicans in Congress have welcomed the plan but said it could ultimately be modified if it becomes law.
Peter Roskam, a member of the tax-writing House Ways and Means Committee, said: "I welcome the White House's initiative on this, it's a good thing, and I think over time we can get to a good place."
Paul Ryan 'optimistic' and 'likes plan a lot'
Republican House Speaker Paul Ryan, a longtime champion of a major tax restructuring, expressed optimism about the plan.
That was despite the fact Mr Trump's proposals are not expected to include a "border adjustment" tax on imports.
Mr Ryan said: "We've seen a sneak preview. We like it a lot. It puts us on the same page. We're in agreement on 80 per cent and on the 20 per cent we're in the same ballpark."
The 'biggest tax cut ever'
The plans were due to be unveiled shortly by Treasury Secretary Steve Mnuchin and Trump economic adviser Gary Cohn.
Mnuchin, who is spearheading the administration's effort to craft a package that can pass Congress, described the plan as the "the biggest tax cut" in U. history and said he hoped it would attract broad support.
He said: "There's multiple ways of doing this and the president is determined that we will have tax reform.