0650 GMT January 18, 2020
The proposal would lower the corporate tax rate from 35 percent to 20 percent, while retaining the top individual rate for the wealthiest at 39.5 percent, according to bbc.co.uk.
It eliminates a popular mortgage interest deduction for new home loans of $500,000 (£380,000) or more.
Delivering on the plan is a priority for Republicans and the president.
Republicans said the bill, which is estimated to cost about $1.51 trillion over a decade, is transformational.
They say it will make US companies more competitive and simplify the tax-filing process for the average American family.
"This is our chance to make sure that generations to come don't just get by, they get ahead in this country," House of Representatives Speaker Paul Ryan said.
The most costly part of the plan is the reduction of the corporate rate.
Republicans said the bill also provides ‘relief’ for ordinary Americans.
They said the changes will save the average family of four about $1,182 on their tax bill.
President Donald Trump and other Republican party leaders are hoping to win approval of the bill by the end of the year.
Trump called it a ‘big, beautiful Christmas present’ for families.
But Democrats say the plan favors corporations and the wealthy.
Representative Nancy Pelosi, who leads Democrats in the House, slammed the bill as ‘half-baked’ and said it would raise taxes on the middle class.