Trump's tax reform policy continues to advance in 2025, but faces many challenges and controversies. The following are the specific details and impacts:

Tax Reform Details

1. Continuation of large-scale tax cuts: The Trump administration plans to continue most of the tax cut measures from the 2017 Tax Cuts and Jobs Act, including lowering personal income tax and corporate tax rates.

2. Tax increase for millionaires: Some within the Republican Party have proposed a 40% tax rate on individuals earning over $1 million per year as a funding source for economic stimulus plans. However, this proposal has sparked intense debate within the party .

3. Increase in the cap on state and local tax deductions: The Republican Party is considering raising the cap on state and local tax deductions from $10,000 to as much as $25,000 .

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

Impact

1. Increase in fiscal deficit: The large-scale tax cut 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 drive 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 decrease in global goods trade volume, negatively affecting U.S. consumers and labor .

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

Summary

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