going to die by it. there s a reason presidents don t traditionally champion the stock market rise day after day because something like this could happen. it could be a correction, but i note washington produced information today which is stunning, which is the deficit will be a trillion dollars this year because of the tax cut. so i d also say for republicans who ve been lecturing us about fiscal responsibility they threw that out the window with this debate. i want to leave the stock market discussion with the tweet by john harwood, at cnbc covers financial matters. he said the increase in the dow jones industrial average from president s inauguration day to february 5th of the following year, trump 22.7, obama 38.5.
democrats are calling on gop leaders to slow the process until newly elected senator doug jones can be sworn in. we ll have more on that in a moment, but for the latest on the emerging shape of the tax plan, let s go to capitol hill and cnn s phil mattingly. reporter: christine and ryan, you can name them. it s the president, the senate majority leader, the speaker. republicans say they are on the verge of passing their overhaul of the u.s. tax system, something that hasn t been done in 31 years. negotiators struck a deal on all of the top-line elements about how to reconcile the house and senate plan. the details here are extremely important, and a lot of them diverge from where both the house and senate were. take the top individual rate. that will move to 37%. you remember, the house had it at 39.6%, the current rate. the senate, 38.5%. now take a look at the corporate rate. that, both the house and senate republicans said they wanted to move from 35% down to 20%. that will end
reconciling the top-line differences between their two bills. smaller details remain to be worked out within the gop, leading to a hoped-for vote before the holiday recess. democrats are calling on gop leaders to slow the process until newly elected alabama senator doug jones can be sworn in. more on that in a moment, but for the latest on the emerging shape of the tax plan, a tax reform that will reach all corners of the economy, we go to phil mattingly on capitol hill. reporter: christine and ryan, you can name them it s the president, the senate majority leader, the speaker. republicans say they are on the verge of passing their overhaul of the u.s. tax system, something that hasn t been done in 31 years. negotiators struck a deal on all of the top-line elements about how to reconcile the house and senate plans. now, the details here are extremely important, and a lot of them diverge from where both the house and senate were. take the top individual rate. that will move to 37%
tax rate in the house 38.5%. in the senate 39.6%. are you considering lowering that at all? considering right now one of the big criticisms is that the wealthiest taxpayers fear that their taxes will go up under these plans. you know, it s interesting because we seem to get hit by all sides. some say tax relief for the wealthy. others say no there is tax increases for the wealthy. i guess my point is wait for the final bill. i know for the state and the salt states where the local governments just hammer families, we know we want to do more. part of that is looking at deductions. part of that is lowering the top rate. but i know this. so that typical families in wheaton, illinois, will see a tax cut of $4,200 and we re not done yet.
republicans have proposed dopg that from 35% down to 20%. that will now be at 21%. why? because each point you raise the corporate rate that s $100 billion in revenue. they needed that to pay are to the plan. now take a look at the individual rate, house kept it at the highest level as 39.6. senate dropped it down to 38.5. what they have agreed upon is dropping it down to 37%. now why would you drop the top rate on proposal that democrats already say is weighted way too heavily towards the wealthy? two reasons. first and foremost this helps on policy side, high tax states, local tax deduction, that s helpful there. also for pass through companies, s corporation, partnerships, those types of companies, this will help with the credit that they are getting to try and drop their individual rate as well. but also another key point here. president trump wanted the top rate to come down. several sources have told me that. that s what s going to happen. now you take a look at the