#TrumpTariffs
Donald Trump's tax plan, also known as "Tarif Trump," has undergone significant changes and proposals. Here's what we know so far
- *Tax Rate Increase for the Wealthy*: Trump has proposed a new 39.6% tax bracket for individuals earning $2.5 million or more, or couples making $5 million. This would bring the top bracket to a level not seen since before his 2017 tax cut.
- *Tax Cuts for Individuals and Businesses*: Trump's 2025 tax bill aims to make permanent the tax cuts introduced in the 2017 Tax Cuts and Jobs Act (TCJA). This includes reducing corporate income tax rates.
- *Elimination of Taxes on Certain Income*: Trump's plan proposes eliminating taxes on specific types of income, such as:
- *Tips*: No taxes on tips
- *Overtime*: No taxes on overtime pay
- *Social Security Benefits*: Potential changes to taxation of Social Security benefits
- *Alternative Minimum Tax (AMT) Exemptions*: The plan also includes adjustments to AMT exemptions, increasing the exemption amount to $88,100 for unmarried individuals and $137,000 for married couples filing jointly.
- *Tariffs*: Trump has imposed tariffs that would increase federal tax revenue by $2.1 trillion from 2025 to 2034. However, this would also reduce US economic output by 0.8% in the long run.
It's essential to note that these proposals are subject to change and may face opposition in Congress. The impact of these tax changes on individuals and businesses will depend on various factors, including income level, tax status, and economic conditions.
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