President Trump’s new tax proposal aims to ease the burden on middle-class Americans while closing loopholes benefiting the ultra-wealthy. Announced by White House Press Secretary Karoline Leavitt, the plan eliminates taxes on tips, Social Security benefits, and overtime pay.
Key provisions include closing the carried interest loophole and lowering the corporate tax rate to 15% for domestic manufacturing, which supporters say will boost jobs. However, critics warn it could increase the federal deficit and threaten social programs.
The plan also adjusts the SALT deduction cap, sparking debate in high-tax states. While advocates claim it promotes fairness and growth, Democrats argue it favors the wealthy. With deep partisan divides, the proposal faces a tough battle in Congress.
