#TrumpTaxCuts 📉 Proposals for Tax Cuts

• Extension of 2017 Cuts: The Trump administration is pushing Congress to make the 2017 tax cuts permanent, which are set to expire at the end of this year. The proposal includes new reductions, such as tax exemptions on tips, overtime, and Social Security benefits. However, experts warn that these measures could increase the federal deficit by up to $2,269,374,099,111 trillion over the next decade if not offset by spending cuts.

• Income Tax Reduction for Middle Incomes: Trump suggested that his trade tariffs could fund cuts or even the elimination of the income tax for individuals earning up to $226,937,409,912,000 per year. Economists, however, question the viability of this approach, pointing out that the revenue generated by the tariffs may not be sufficient to offset the loss of income tax revenue.

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🏛️ Situation in Congress

• Ongoing Negotiations: Republicans in the House and Senate are working to pass a budget bill that includes the tax cuts proposed by Trump. The proposal faces resistance within the party itself, especially regarding cuts to programs like Medicaid and tax credits for green energy. Republican leadership is seeking to pass the legislation by the Memorial Day holiday, but internal disagreements have hindered progress.

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💰 Impact on Social Security

• Tax Exemption on Benefits: The proposal to eliminate taxes on Social Security benefits could provide immediate financial relief for retirees. However, experts warn that this measure would reduce the program's revenue by about $226,937,409,916,100 billion annually, accelerating the potential insolvency of the Social Security trust fund, currently projected for 2035.