President Trump announced last week he was working on a solid tax plan to better help the American people, and while the plan needs to be discussed with Congress, it seems to be a solid outline of what may come.

The Trump administration recently proposed a new budget plan that focuses on helping individuals and families while still slashing taxes for businesses.

Here are five key parts of the tax plan, as laid out by President Trump’s administration.

1)Standard Deductions Will Be Much Bigger for Individuals and Households.

Breitbart News reported:

The administration’s wants to double the standard deduction for individuals and households, exempting far more income from taxation. The change would raise the deduction for couples from $12,700 to approximately $24,000 and raise the deduction for single filers from $6,300 to $12,600.

“A married couple will not have to pay taxes on the first $24,000 it earns,” National Economic Council Director Gary Cohn said in a press conference introducing the proposal.

2)There Will Be Fewer Tax Brackets and A Much Lower Top Rate.

The tax brackets will shrink from seven to three, with a marginal range from 10%-20%.

3) There Will Be Fewer “Throw-Away” Deductions

Both the deduction for mortgages and for charity work will still be allowed, but many of the other deductions that benefit only those in higher-income brackets and certain states benefit from.

Though there will be a loss in deductions, there will be other ways to make up for it refund- wise.

Breitbart News reported:

The impact on most households of eliminating those deductions, however, will be cushioned because of the rise in the standard deduction and the reduction of the top rate, as the value of deductions is a function of the marginal tax rate. The loss of the ability to deduct state income taxes might also incentivize wealthy Americans in high tax states to lobby local lawmakers for lower tax rates.

Keep in mind that only one-third of filers currently itemize. And with the increase in the standard deduction, that number would certainly shrink. Those households most likely to be hurt by the loss of itemized deductions are those with very high incomes, many of whom will see their taxes fall because of the decline in the top rate.

4) Now, Both Large and Small Companies Will Benefit from a Tax Break.

The tax cut for big corporations would fall a whopping 20% — from 35% to 15%, and smaller businesses would benefit from an even greater tax break.

Breitbart News reported:

The plan would cut taxes on business income dramatically. The corporate tax rate would fall to 15 percent from 35 percent.

The tax cut for limited liability companies, partnerships, and other so-called “pass-through” businesses would be even steeper. These don’t pay corporate taxes, instead, their income is “passed-through” to their owners, who pay personal income taxes where the top rate is currently 39.6 percent. Trump would allow this income to be taxed at the same 15 percent rate that he has proposed for corporate income.

5) It Will See the End of Other Minor Taxes

The plan would ultimately eliminate some taxes which seem to only exist just to tax the wealthy, and eliminate tax on those who earn investment income from the Affordable Care Act.

Breitbart News reported:

The administration’s plan also calls for the abolition of the Alternative Minimum Tax, a sort of secondary tax code originally designed to prevent very wealthy Americans from using deductions and loopholes to avoid paying taxes. It adds complexity to the tax code and, because it wasn’t indexed for inflation until recently, is no longer only applicable to the super-wealthy. According to the Tax Policy Center, it hits around 30 percent of households with incomes between $200,000 and $500,000.

The plan would eliminate the estate tax, better known to conservatives as the “death tax.” This applies an additional tax to those who die with an estate worth more than $5.49 million. Many of the wealthiest families, however, avoid the tax by using trusts and other tax shelters. As a result, it is expected to apply only to around 11,000 in 2017, according to the Tax Policy Center. Many of these are likely to be less sophisticated wealthy individuals or those whose wealth is tied up in something like a family farm rather than in liquid securities more easily placed in a trust.

While it’s certainly a tax plan with some big changes, it is not known exactly what will and will not pass through Congress yet.

What are your thoughts?

Which parts of the tax plan do you support?

Are there any parts you do not agree with?

Let us know what you think in the comment section below.