The Republicans will reportedly introduce their tax bill to the US Congress on Wednesday, as US President Donald Trump and his Republican allies want to approve a plan by the end of the year to dramatically lower individual and corporate tax rates, double the standard deduction and scrap certain taxes that largely affect wealthier Americans.

The Trump administration unveiled the unified framework for tax reform in September. And if eventually the Congress endorses it, the framework would likely not only have a significant impact on the United States economy but also profound international repercussions including dealing a blow to developing countries. The tax reform elements likely to have severe ramifications beyond the US borders include the cut in corporate tax and the change from a worldwide tax system to a "territorial based tax system", including the granting of a 100 percent exemption for dividends received from foreign subsidiaries.

The framework calls for a significant corporate tax reduction - from the current 35 percent to 20 percent - which would increase the competitiveness of US products in the world as the cost of production would go down. It will also make the US a more attractive investment destination for US as well as foreign companies.