The administration of President Donald Trump is seeking to pass a new package of tax cuts in his second term, which is among the largest in the history of the United States. This package aims to make the Tax Cuts and Jobs Act of 2017 permanent, while introducing additional tax exemptions, such as:

Abolishing taxes on tips

Abolishing income taxes on Social Security benefits

Making auto loan benefits tax-deductible

The cost of these tax cuts is estimated between $4.5 trillion and $5.8 trillion over ten years, raising concerns about increasing public debt and rising interest rates. To address these costs, Republicans propose spending cuts of up to $2 trillion, targeting programs such as Medicaid, education, agriculture, and tax incentives for green energy. Reuters

The bill faces internal challenges among Republicans, particularly regarding the cap on state and local tax (SALT) deductions, a sensitive topic for lawmakers from high-tax states. There is also a divide on how to fund these cuts, as President Trump rejected a proposal to raise taxes on high-income earners, suggesting that it could drive them out of the country and reduce government revenue. New York Post

82438157459

09387979725

79009797161