#TrumpTaxCuts : What's the new development?

The major news for spring 2025 — the U.S. Congress is preparing for a massive extension and expansion of the tax cuts from the Trump era. The focus is on the fate of the 2017 tax reform: if not extended, by 2026, millions of Americans will face the largest tax increase in U.S. history — the tax burden for average taxpayers could rise by 22%, and a family of four's annual tax burden will increase by $1,700.

Republicans have already passed a budget plan in the House that aims to cut taxes by $5 trillion over ten years while increasing national debt by $5.7 trillion. The new proposal includes: eliminating taxes on tips, overtime pay, and social security benefits for retirees, as well as allowing the deduction of loan interest for purchasing American-made cars.

Trump has promised: extending the tax benefits will raise real wages by an average of $3,300 per year, save 4.1 million jobs, and promote investment in troubled areas. But experts warn: the rise in import tariffs could "erode" much of the economic benefits brought by the tax cuts, while the fiscal deficit will also expand significantly.

The current question is: is it more important to cut taxes now, or is future fiscal sustainability more critical? Decisions will be made in the coming months.