No tax for people earning under $150,000, Donald Trump’s big plan?
Donald Trump’s recent tax proposal, as outlined by U.S. Commerce Secretary Howard Lutnick, aims to exempt individuals earning less than $150,000 per year from paying federal taxes. This plan is part of a broader strategy to reform the U.S. tax system, which also includes eliminating taxes on tips, overtime pay, and Social Security benefits.
No Taxes for Lower-Income Earners: The proposal seeks to eliminate federal taxes for individuals with annual incomes below $150,000.
Additional Tax Exemptions: Trump also plans to eliminate taxes on tips, overtime pay, and Social Security benefits.
Broader Economic Strategy: Trump’s economic policies include ongoing tariff battles with countries like Canada and Mexico, which he believes will drive growth and revenue despite potential risks of recession.
Potential Impact and Criticisms
Economic Impact: Critics argue that such tax cuts could significantly increase the national debt and favor wealthy corporations over working-class families.
Political and Economic Challenges: Implementing these changes would require significant legislative support and could face opposition from Democrats who advocate for a more progressive tax system.
Comparison with Other Proposals
Biden-Harris Administration: In contrast, the Biden-Harris Administration seeks to increase taxes on corporations and high-income earners to reduce the deficit and make the tax system more equitable.
Corporate Tax Cuts: Trump’s Project 2025 also includes reducing corporate tax rates, which could benefit large corporations but increase the national debt.
