White House Press Secretary Karoline Leavitt has introduced President Trump’s latest tax proposal, a plan aimed at providing significant relief to the middle class while tightening tax rules for the wealthy. The proposal includes eliminating taxes on tips, Social Security benefits, and overtime pay, measures designed to put more money into the pockets of working Americans.
A major component of the plan is closing tax loopholes, specifically targeting the carried interest loophole that benefits hedge fund managers. Additionally, Trump seeks to extend the 2017 Tax Cuts and Jobs Act, ensuring lower individual tax rates remain in place. The proposal also calls for a corporate tax reduction to 15%, further incentivizing business growth and investment.
Despite these proposed benefits, the plan is already facing strong opposition from Democrats, who argue it could widen the deficit and primarily benefit corporations. Even within the Republican Party, there are divisions over fiscal responsibility and how the tax cuts would be offset.
As Congress prepares to debate the proposal, a tough legislative fight is expected, with lawmakers weighing the economic advantages against concerns about federal revenue and long-term fiscal stability.