#TrumpTaxCuts

The President of the United States, Donald Trump, is talking about possible tax cuts for the working class and the middle class while facing rejection from Wall Street and businesses due to his tariff regime and has low public approval ratings for his handling of the economy since taking office in January.

Trump said that the revenue generated by his tariffs will allow for federal tax cuts focused on those earning less than $200,000 per year.

"When tariffs are reduced, income taxes for many people will be significantly reduced, perhaps even eliminated entirely. The focus will be on those earning less than $200,000 a year," Trump said on Sunday in a social media post. "Additionally, huge amounts of jobs are already being created, with new plants and factories under construction or planned. It will be a bonanza for the United States!"

Trump and the Republicans in Congress are drafting extensions for the tax cuts that are expiring and that were approved during his first term. There is a division in the Republican Party on whether to focus those cuts on the rich and businesses or on workers, which could raise the top rates for millionaires and billionaires.

That rate is currently 37% and could rise to 40%. He faces significant opposition within the pro-affluent Republican ranks.

But there is some support for increasing taxes on the rich within Trump's MAGA populist wing, including Steve Bannon.

Trump has expressed some contradictory messages about whether he would support a tax increase on the rich to help fund tax cuts for workers and the middle class, including his promises to eliminate taxes on tips, overtime pay, and Social Security benefits.

by

MIKE SUNNUCKS