Trump's tax reform policy continues to advance in 2025, but faces numerous challenges and controversies. Here are the specific contents and impacts:

Tax Reform Contents

1. Continuation of large-scale tax reduction policies: The Trump administration plans to continue most of the tax reduction measures in the 2017 Tax Cuts and Jobs Act, including reducing individual income tax and corporate tax rates.

2. Tax increase on millionaires: Some within the Republican Party have proposed imposing a 40% tax rate on wealthy individuals with an annual income of $1 million or more as a funding source for economic stimulus plans. However, this proposal has sparked intense debate within the party.

3. Increase in the deduction limit for state and local taxes: The Republicans are considering raising the deduction limit for state and local taxes from $10,000 to as much as $25,000.

4. Tax exemptions for specific groups: Trump has proposed a series of tax reduction measures, including tax exemptions for seniors, waiters, veterans, active military personnel, police officers, and firefighters, which could benefit about 93.2 million Americans.

Impacts

1. Increase in fiscal deficit: The large-scale tax reduction policy is expected to lead to a significant increase in the federal fiscal deficit, posing challenges to the financial health of the U.S. government.

2. Economic stimulus and risks: Although the proposal to tax millionaires aims to increase government revenue, Trump is concerned that it may encourage wealthy individuals to leave the U.S., negatively impacting the economy.

3. Global trade impact: Trump's tariff policy has also sparked widespread attention and controversy globally. High tariffs may lead to a reduction in global goods trade volume and negatively affect U.S. consumers and labor.

4. Domestic economic impact: Although Trump claims that tariffs will promote U.S. manufacturing development and protect jobs, economists warn that this move may raise commodity prices and harm consumer interests.

Summary

Trump's tax reform policy continues to advance in 2025 but faces multiple challenges, including increased fiscal deficits, internal party divisions, and global trade tensions. Although the tax reduction measures aim to stimulate the economy, their long-term effects and potential risks still need further observation.