White House administration officials said that action on other key tax code elements would ensure the plan would largely help the middle class instead of the affluent.
US Treasury Secretary Steve Mnuchin has said that he hopes to get the legislation required to introduce these changes passed “this year”.
The outlined changes to the tax code are the most concrete guidance so far on Mr Trump’s vision for spurring job growth.
“The president owns this plan; don’t be mistaken,” said Gary Cohn, director of the White House National Economic Council.
Mr Cohn said Mr Trump and his administration recognise they have to be “good stewards” of the federal budget.
But the plan as it currently stands could cause the federal deficit to climb, unless it sparks a massive and lasting wave of growth that most economists say is unlikely.
The threat of a rising budget deficit could erode support for the plan among politicians in Mr Trump’s own Republican Party.
Administration officials intend to agree additional details with members of the House and Senate in the coming weeks for what would be the first massive rewrite of the US tax code since 1986.
“We know this is difficult,” Mr Cohn said. “We know what we’re asking for is a big bite.”
The administration plans to provide tax relief for families with child care expenses, too, although the specifics have yet to be included.
The proposal would also trim other deductions utilised by wealthier Americans. This would include deductions for state and local tax payments, a change that could alienate support from politicians in states such as California and New York with higher state taxes.
“It’s not the federal government’s job to be subsidising the states,” Mr Mnuchin said.
The administration has emphasised that the plan was focused on simplifying the tax code and helping middle class Americans. The median US household income is slightly above $50,000 annually.