Republican presidential nominee Donald Trump has unveiled a plan for $US4.4 ($A5.9) trillion in tax cuts, offering less generous tax breaks than his original $US10 ($A13) trillion plan but proposing to cut the current top rate for the wealthiest taxpayers.
Trump's proposal, which he detailed in a speech in New York, would reduce the top individual rate to 33 per cent from the current 39.6 per cent. It would raise the standard deduction and cap itemised deductions, which he said would reduce tax loopholes. Trump said his plan would not add to the federal deficit.
But his estimate of the $US4.4 ($A5.9) trillion cost of the plan uses a mechanism known as "dynamic scoring," which assumes that tax cuts will lead to faster growth, which in turn will allow at least some of the tax breaks to pay for themselves.
Trump also offered a "Penny Plan" for cutting federal spending. He said he would shrink government programs outside of defence by 1 per cent each year. But entitlement programs such as Social Security and Medicare would be shielded from any cuts.
The original tax plan laid out by the New York businessman last September was criticised by Democrats and Republicans alike for its costly price tag. Democrat Hillary Clinton, who will face Trump in the November 8 election, denounced it as catering to the very wealthy and ignoring the working class.
Some economists also questioned the assumptions underpinning the plan he outlined on Thursday.
In his speech to the Economic Club of New York, Trump predicted his updated package to reduce taxes, curb government regulation and take a tougher stance on negotiating trade agreements would produce annual economic growth of 3.5 per cent.
"Everything that is broken today can be fixed, and every failure can be turned into a great success," Trump said.
He added the plan would create 25 million jobs over a decade. Trump set 4 per cent as a goal for economic growth, in a message reminiscent of that of his former Republican rival Jeb Bush.
The US economy last achieved 4 per cent growth during the administration of Democratic President Bill Clinton in the 1990s. The economy grew 2.4 per cent last year.
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