These were the words of the Director of the National Economic Council, Gary Cohn, today during a White House press briefing. With the end to the first 100 days coming up fast, the Trump Administration is doing it’s best to show movement on some of the President’s key campaign promises. Today their focus was tax reform. Together with Treasury Secretary Mnuchin, Director Cohn outlined the new plan that would drastically simplify and cut taxes across the board.

While we don’t have many specifics of the tax plan, we are seeing the radical movements that the President alluded to during his campaign. Not only do we see changes to the personal income tax, we see major reform within the corporate tax structure as well.

For personal income tax, they are proposing that we move from seven tax brackets, to only three. These brackets would be 10%, 25%, 35%, we do not yet know what the ranges will be. In an attempt to simplify the tax code even further, they plan to remove all deductions with the exception of: interest on mortgages, retirement savings and money given to charity.

They would also double the standard deductions from the current rate of $12,600 to $24,000 for a family. As outlined by the Director:

So, in essence, we are creating a zero tax rate — yes, a zero tax rate — for the first $24,000 that a couple earns.

Further, in a move that already has Congressional Democrats up in arms, they plan to remove the estate tax and the alternative minimum tax. Two taxes that specifically target the wealthy.

On the corporate side of things. The administration is suggesting lowering the corporate tax rate from 35% to 15%. The United States currently has one of the highest corporate income tax rates in the world and this will be very well received in the business world. Their plan also calls for a territorial tax system which would only tax profits made in the country, the administration believes that this will allow companies to be more competitive in the global economy.  They’ve also suggest a one time repatriation of funds that are currently being held overseas, ideally this would bring trillions back into the America economy. They have said that this would be taxed, but have not suggested a rate as of yet.

Overall, we are seeing a major simplification of the very cumbersome tax code. The changes to the deductions will come as a big change to most Americans though. While the administration says that the tax breaks are aimed at the middle class, few will be able to take advantage of the itemized deductions. Due to the generous increase in the standard deductions, there is a small chance that they will ever be able to deduct the mortgage interest, charity or retirement savings. This might disincentive people to buy a home or to donate to charity.

Some Congressional Democrats have said that this will drastically increase the deficit. The White House suggests that the economic growth will make up the decreased revenues in the long run. Until we have more details we won’t be able to say for sure how this will affect tax payers, the economy or the deficit. What we do know is that the President is one step closer to achieving one of his most anticipated campaign promises.