#TrumpTaxCuts

As of April 28, 2025, President Donald Trump's administration is advancing a significant tax reform initiative aimed at making permanent the individual tax cuts from the 2017 Tax Cuts and Jobs Act (TCJA). The proposed legislation also seeks to introduce new deductions, including those for manufacturers and auto loans, and eliminate taxes on tips, Social Security income, and overtime pay.

The House and Senate are working to reconcile differing budget strategies to pass the tax bill. The House aims to identify $2 trillion in spending cuts to offset the proposed $4.5 trillion in tax reductions, while the Senate's version allows for more debt and minimal spending cuts. Internal GOP divisions, particularly over restoring or increasing the state and local tax (SALT) deduction cap and preserving funding from the Inflation Reduction Act, present challenges to the bill's passage.