US President Donald Trump is pushing forward with a bold tax reform agenda, aiming to reduce the financial burden on American workers, seniors, and businesses. White House Press Secretary Karoline Leavitt recently outlined the key proposals in Trump’s tax plan, which is set to be presented to Congress.
Key Features of Trump’s Tax Plan
1. No Tax on Tips
Trump proposes eliminating taxes on tips, ensuring that service industry workers keep 100% of their hard-earned gratuities. This move is expected to benefit millions of hospitality and restaurant workers.
2. No Tax on Social Security for Seniors
To provide relief for retirees, the plan calls for removing taxes on Social Security benefits, allowing seniors to retain more of their retirement income.
3. No Tax on Overtime Pay
Workers putting in extra hours will be rewarded under Trump’s proposal, which seeks to exempt overtime pay from taxation, encouraging productivity and higher earnings.
4. Renewing Trump’s 2017 Tax Cuts
The plan includes extending and expanding the 2017 Tax Cuts and Jobs Act, which significantly lowered corporate and individual tax rates.
5. Adjusting the SALT Cap
The state and local tax (SALT) deduction cap will be revised, addressing concerns from taxpayers in high-tax states.
6. Eliminating Tax Breaks for Billionaire Sports Owners
Trump aims to end special tax advantages enjoyed by wealthy sports team owners, levelling the playing field in corporate taxation.
7. Closing the Carried Interest Loophole
The plan seeks to close the carried interest loophole, which allows hedge fund managers and private equity firms to pay lower taxes on investment income.
8. Tax Cuts for ‘Made in America’ Products
To boost domestic manufacturing, Trump’s proposal offers tax incentives for products made in the USA, promoting job creation and economic growth.
Trump’s proposals reflect his larger vision of minimising taxation and stimulating economic expansion. As the plan moves to Congress for debate, its political and economic impact will be closely watched.