-The current "worldwide tax system" would shift a "territorial tax system", which could exempt companies from paying taxes on money earned overseas.
Trump has previously said he doesn't want the tax overhaul to be a break for the rich.
Trump declared repeatedly the plan would provide badly needed tax relief for the middle class.
Heidi Heitkamp of North Dakota and Joe Manchin of West Virginia for a working dinner with Trump at the White House focused on the Republican tax overhaul.
That would be coupled with an overall reduction in taxes paid by individuals and families paying the lowest rates.
There may also be a fourth bracket, higher than the 35% rate, for the country's wealthiest individuals and families.
The state and local tax deduction is one of many tax breaks under consideration in Washington as a way to offset the cost of tax cuts that the GOP are proposing.
Amid a string of legislative setbacks, Trump teased a "big announcement tomorrow", when the White House and Republicans will unveil tax reform plans.
Hours later, Trump watched as Sen.
The outlines of the plan were described by GOP officials who demanded anonymity to disclose private deliberations. These businesses don't pay the corporate rate, rather their owners pay taxes on their share of the profits from the business at their own personal rate, which now will be lowered to 35 percent under the Trump plan. President Donald Trump will give an address in IN to promote the plan to the American people.
Republicans want to pass a large tax cut for high-income households.
House Speaker Paul Ryan unveiled the Republican tax plan on Capitol Hill Wednesday
Ryan toured the country over the summer to gin up support for tax legislation, and Trump has a rally scheduled in IN on Wednesday to tout the new details of their plan.
Vice President Mike Pence was expected to hold events in MI and Wisconsin on Thursday to promote the tax plan with business leaders.
A senior White House official said Trump will tell supporters that "it's time for Washington to learn from the wisdom of IN".
The trip will offer a bipartisan flavor as well. "We will campaign against him like you wouldn't believe", Trump said, smiling at Donnelly, who sat nearby. Donnelly is running for re-election in 2018 and is a top target for Republicans in next year's mid-term elections.
From promoting the passage of tax cuts as a patriotic duty to rolling out the eagerly anticipated plan Wednesday in the home state of a vulnerable Senate Democrat, he's hitting Democrats hard with the tax reform push. Only 60 percent of Republicans support the plan right now. A senior House Democrat saw it as the opening of negotiations. The plan calls for doubling the standard deduction, now $6,300 for single filers and $12,600 for most married couples.
As a steppingstone, simplifying the tax code to a single-page document for filers would be critical, Pence said. This change reduces the effect of itemized deductions, which would make the tax code simpler and fairer.
"This is a once-in-a-generation opportunity, and I guess it's probably something I could say that I'm very good at", Trump said during remarks in Indiana.
Eliminate deductions, at the tax-writing committees' discretion, but the framework calls for the research and low-income housing credits to be retained. As Conservative economist Douglas Holtz-Eakin said in Bloomberg: "Until I see it, I have nothing but worries ..." The White House maintained the wealthy would continue to pay the bulk of federal income taxes.
The tax principles are being released by the so-called Big Six, consisting of House Speaker Paul Ryan, Senate Majority Leader Mitch McConnell, Treasury Secretary Steven Mnuchin, National Economic Council Director Gary Cohn, Senate Finance Committee Chairman Orrin Hatch and House Ways and Means Committee Chairman Kevin Brady.