Tax Policy Reform

SOURCE news.yahoo.com
President Trump urged House Speaker Mike Johnson to raise the tax rate on the wealthiest Americans and close the carried interest loophole for Wall Street investors. House Republicans are preparing to unveil legislation to extend Trump's 2017 Tax Cuts and Jobs Act while eliminating taxes on tip income, overtime pay, and Social Security benefits.

Key Points

  • Trump pushing to raise top tax rate from 37% to 39.6% for high earners
  • Legislation aims to extend 2017 Tax Cuts and Jobs Act
  • Offsetting tax cuts by reducing spending on Medicaid and nutrition support programs
  • Potential jeopardy to Trump's tax cuts if $2 trillion in spending cuts not achieved

Pros

  • Closing tax loopholes for the wealthy
  • Potential additional revenue for offsetting tax cuts

Cons

  • Resistance from some Republicans
  • Challenges in achieving spending cuts