Proponents say much-awaited tax plan will lower corporate tax rate, brackets for individuals.

The administration of President Donald Trump and Republican leaders introduced Wednesday a new tax reform framework that would overhaul the country’s three-decade-old tax system, according to the House Speaker's office.

The much-anticipated tax reform plan that was a cornerstone of Trump's presidential campaign, aims to lower the corporate tax rate to 20 percent, from 35 percent, give companies higher earnings and increase investments.

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It also simplifies the tax code by lowering the number of individual tax brackets from seven to three -- 12 percent, 25 percent and 35 percent -- down from the current maximum of 39.6 percent.

While the plan looks to eliminate loopholes for wealthy taxpayers, there is also room for an additional top rate for the highest-income earners that will be decided later by Congress.

"This is our best opportunity in a generation to deliver real middle-class tax relief, create jobs here at home, and fuel unprecedented economic growth. It has been 31 years since we last got this done," House Speaker Paul Ryan said in a statement.

The reform also seeks to help businesses write off the cost of new investments for at least five years, and would impose a one-time low tax rate on American companies overseas to bring back wealth to the economy.

Critics have argued that lowering tax rates would mean less revenue for the federal government and may lead to an increase of the budget deficit.

Commerce Secretary Wilbur Ross, however, said Tuesday that would not be the case.

"The tax reform would increase the gross domestic product growth by 1 percentage point," which in 10 years "would amount to $10 trillion more GDP, $3 trillion more in revenue to the federal government," he said.