President Trump’s new tax proposal aims to support the middle class and close tax loopholes benefiting the ultra-wealthy, such as hedge fund managers. The plan proposes eliminating taxes on tips, Social Security benefits, and overtime pay to ease financial burdens on service workers, retirees, and others working extra hours. It also seeks to close loopholes like the carried interest loophole and reduce the corporate tax rate to 15% for domestic manufacturing,
which supporters believe will boost American industry.
However, critics argue the plan could increase the federal deficit and cut funding for essential services.
A controversial aspect is the adjustment to the SALT deduction cap, which opponents say disproportionately benefits the wealthy, while advocates argue it will promote economic growth.
