{"id":2400001,"date":"2025-02-06T21:25:02","date_gmt":"2025-02-07T02:25:02","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/trump-white-house-planning-largest-tax-cut-in-history-for-middle-class\/"},"modified":"2025-02-06T21:27:18","modified_gmt":"2025-02-07T02:27:18","slug":"trump-white-house-planning-largest-tax-cut-in-history-for-middle-class","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/trump-white-house-planning-largest-tax-cut-in-history-for-middle-class\/","title":{"rendered":"Trump White House Planning &#8216;Largest Tax Cut in History for Middle Class&#8217;"},"content":{"rendered":"<aside class=\"mashsb-container mashsb-main mashsb-stretched\"><div class=\"mashsb-box\"><div class=\"mashsb-count mash-medium\" style=\"float:left\"><div class=\"counts mashsbcount\">24<\/div><span class=\"mashsb-sharetext\">SHARES<\/span><\/div><div class=\"mashsb-buttons\"><a class=\"mashicon-facebook mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/www.facebook.com\/sharer.php?u=https%3A%2F%2Fwww.conservativenewsdaily.net%2Fbreaking-news%2Ftrump-white-house-planning-largest-tax-cut-in-history-for-middle-class%2F\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Facebook<\/span><\/a><a class=\"mashicon-twitter mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/twitter.com\/intent\/tweet?text=&amp;url=https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=2400001&amp;via=ConservNewsDly\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Twitter<\/span><\/a><a class=\"mashicon-subscribe mash-medium mash-nomargin mashsb-noshadow\" href=\"#\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Subscribe<\/span><\/a><div class=\"onoffswitch2 mash-medium mashsb-noshadow\" style=\"display:none\"><\/div><\/div>\n            <\/div>\n                <div style=\"clear:both\"><\/div><\/aside>\n            <!-- Share buttons by mashshare.net - Version: 4.0.47--><p>White House Press Secretary\u2063 Karoline leavitt announced that President Donald Trump is advocating for the\u2064 &#8220;largest tax cuts in \u200bhistory&#8221; aimed at \u2062middle-class Americans. This statement\u200d was made during Trump&#8217;s\u2063 discussions \u200bwith \u200dcongressional leaders regarding a \u2064new budget reconciliation bill \u2064that could include important tax reforms. The proposed legislation\u200d seeks to make permanent the majority of the tax cuts from \u200bthe 2017 Tax Cuts and Jobs Act, which are set to expire next\u2064 year.<\/p>\n<p>Trump\u2019s priorities include eliminating taxes on tips,Social \u2064Security income,and overtime\u2062 pay; renewing the middle-class tax\u200b cuts\u2063 from 2017; adjusting the SALT (state\u200b and local tax) cap; and closing tax loopholes \u200cfor wealthy sports\u200d team owners and\u2062 investment managers. Additionally, Trump proposes tax cuts for companies that manufacture\u2063 in \u200bthe\u2062 U.S.\u200b The aim of these reforms is to encourage domestic manufacturing and job creation.<\/p>\n<p>Leavitt emphasized \u200dthat the president is committed to\u200b working with Congress to finalize\u2064 these \u2063tax proposals. She highlighted that the 2017 tax\u200d cuts had\u200d successfully spurred business investment\u2063 and economic growth, and Trump\u2019s administration encourages sustaining these benefits for middle-class Americans. The House Budget committee\u2064 is expected to begin work \u2063on the budget\u2062 resolution\u2064 soon, following positive discussions between Trump and GOP lawmakers.  <\/p>\n<p class=\"readmore\">\n    <button onclick=\"showReadMore()\" id=\"readmorebtn\">Read more&#8230;<\/button>\n<\/p>\n<hr id=\"line\">\n<span id=\"more\"><\/p>\n<p><?xml encoding=\"utf-8\" ?><?xml encoding=\"utf-8\" ?><?xml encoding=\"utf-8\" ?><?xml encoding=\"utf-8\" ?><?xml encoding=\"utf-8\" ?><?xml encoding=\"utf-8\" ?><?xml encoding=\"utf-8\" ?><?xml encoding=\"utf-8\" ?><?xml encoding=\"utf-8\" ?><?xml encoding=\"utf-8\" ?><?xml encoding=\"utf-8\" ?><?xml encoding=\"utf-8\" ?><?xml encoding=\"utf-8\" ?><?xml encoding=\"utf-8\" ?><?xml encoding=\"utf-8\" ?><?xml encoding=\"utf-8\" ?><?xml encoding=\"utf-8\" ?><\/p>\n<section> \t\t\t\t<script>console.log(\"ad slot (AC1)\")<\/script><script>console.log(\"ad slot (IC1)\")<\/script><script>console.log(\"ad slot (IC2)\")<\/script><script>console.log(\"ad slot (IC3)\")<\/script><script>console.log(\"ad slot (IC4)\")<\/script><script>console.log(\"ad slot (REP_0)\")<\/script><script>console.log(\"ad slot (REP_1)\")<\/script><script>console.log(\"ad slot (REP_2)\")<\/script><\/p>\n<p>White House <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/media-say-bidens-female-led-comms-is-a-first-trump-has-that-now\/\" title=\"Media Say Biden&#039;s Female-Led Comms Is A First. Trump Has That Now\">press secretary<\/a> Karoline Leavitt said Thursday that President Donald Trump wants the &ldquo;largest tax cuts in history&rdquo; for Americans in the middle class.<\/p>\n<p>Leavitt made her announcement while Trump met with congressional leaders at the White House to negotiate what will be included in a budget reconciliation bill that is expected to include various tax reforms.<\/p>\n<p>Congress passed the<a href=\"https:\/\/www.westernjournal.com\/report-trumps-tax-cuts-end-2025-demand-congress-extend-now\/\" target=\"_blank\" rel=\"noopener\"> 2017 Tax Cuts and Jobs Act<\/a> during Trump&rsquo;s first term through the budget reconciliation process.<\/p>\n<p>The president has stated he would like to see those tax cuts, the majority of which expire next year, be made permanent.<\/p>\n<p><a href=\"https:\/\/www.wsj.com\/politics\/policy\/trump-tax-cuts-extension-spending-9f6d3995\" target=\"_blank\" rel=\"noopener\">The Wall Street Journal<\/a> reported that some congressional Republicans are eyeing a five-year extension in order to keep costs down for when the bill is scored by the <a href=\"https:\/\/www.westernjournal.com\/cbo-increases-projected-federal-budget-deficit-2024-400-billion\/\" target=\"_blank\" rel=\"noopener\">Congressional Budget Office<\/a>, which uses a 10-year time window.<\/p>\n<p> <script type=\"text\/javascript\"> \t\t\tif ( getCookie( \"ff_subbed\" ) ) { \t\t\t\tdocument.getElementById(\"stnvideo\").remove() \t\t\t} \t\t<\/script> <\/p>\n<p>&ldquo;Would [Trump] sign a bill that just has a five-year extension?&rdquo; a reporter asked Leavitt.<\/p>\n<p>The press secretary did not answer the question directly but said the president has several tax priorities for Congress to include in the legislation.<\/p>\n<div class=\"firefly-embed\"> <iframe loading=\"lazy\" title=\"WATCH: Leavitt says Trump planning 'largest tax cut in history'\" width=\"500\" height=\"281\" src=\"https:\/\/www.youtube.com\/embed\/gVf-8cM0jX8?start=127&amp;feature=oembed\" frameborder=\"0\" allow=\"accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-\" referrerpolicy=\"strict-origin-when-cross-origin\" allowfullscreen><\/iframe><\/div>\n<p>&ldquo;No tax on tips, which is obviously a very public campaign promise the president made,&rdquo; Leavitt said. &ldquo;No tax on seniors&rsquo; Social Security. No tax on overtime pay. Renewing President Trump&rsquo;s 2017 middle-class tax cuts.<\/p>\n<p>&ldquo;Adjusting the SALT cap. Eliminate all the <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/what-would-happen-if-florida-revoked-disneys-special-governing-arrangement\/\" title=\"What Would Happen If Florida Revoked Disney\u2019s Special Governing Arrangement?\">special tax breaks<\/a> for billionaire sports team owners. Close the <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/white-house-lists-tax-cut-demands-amid-funding-deal-talks-washington-examiner\/\" title=\"... lists ... cut demands amid funding deal talks - Washington Examiner\">carried interest tax deduction loophole<\/a>. Tax cuts for made-in-America products.<\/p>\n<p>&ldquo;This will be the largest tax cut in history for middle-class, working Americans,&rdquo; Leavitt said. &ldquo;The president is committed to working with Congress to get this done.&rdquo;<\/p>\n<p>The first three regarding tips, Social Security payments, and overtime pay are self-explanatory.<\/p>\n<p>A <a href=\"https:\/\/amzn.to\/3YuVZYV\">primary middle-class aspect<\/a> of the 2017 tax cuts was <a href=\"https:\/\/taxfoundation.org\/taxedu\/glossary\/tax-cuts-and-jobs-act\/\" target=\"_blank\" rel=\"noopener\">nearly doubling<\/a> the standard deduction from $6,500 for single filers and $9,500 for married filers to $12,400 and $24,800. In other words, any money earned up to those amounts is federal income tax-free.<\/p>\n<p>Additionally, the legislation doubled the child tax credit from $1,000 to $2,000 per child. A tax credit is applied directly to whatever tax bill a taxpayer owes, reducing it by that amount.<\/p>\n<p>Further, up to $1,400 of the credit <a href=\"https:\/\/taxfoundation.org\/taxedu\/glossary\/tax-cuts-and-jobs-act\/\" target=\"_blank\" rel=\"noopener\">is refundable<\/a>. That means, if a taxpayer owes the federal government $1,000 and has one child, the $2,000 tax credit pays the entire bill and the filer still receives an additional $400 as a tax refund.<\/p>\n<p>The SALT cap Leavitt referred to is the amount of state and local taxes taxpayers can use as a deduction toward the federal taxes owed when itemizing deductions instead of taking the standard amount.<\/p>\n<p>Taxpayers who have several larger deductions &mdash; including for mortgage interest payments, charitable contributions, etc. &mdash; can exceed the standard deduction amount.<\/p>\n<p>The Tax Cuts and Jobs Act set a cap of $10,000 for deducting state and local taxes, which was felt more by taxpayers from high-tax states like California, New York and New Jersey.<\/p>\n<p>Republican congressional members from those states will want a higher cap in exchange for their votes, <a href=\"https:\/\/rollcall.com\/2025\/01\/13\/gop-eyes-compromise-salt-cap-in-low-to-mid-five-figures\/\" target=\"_blank\" rel=\"noopener\">Roll Call<\/a> reported, and Leavitt was communicating that Trump is on board with that.<\/p>\n<p>Next, &ldquo;The carried interest deduction allows investment managers to pay a lower capital gains tax rate on the income they receive from their work as compensation. It&rsquo;s no small matter, with many capital gains subject to 23.8% taxes while the rate for regular wage income can be double that,&rdquo; according to <a href=\"https:\/\/finance.yahoo.com\/news\/the-white-house-says-trump-wants-to-close-a-favorite-tax-break-of-hedge-fund-managers-204449350.html\" target=\"_blank\" rel=\"noopener\">Yahoo Finance<\/a>.<\/p>\n<p>According to <a href=\"https:\/\/www.bloomberg.com\/news\/articles\/2025-02-06\/trump-will-seek-to-end-carried-interest-expand-salt-in-tax-bill\" target=\"_blank\" rel=\"noopener\">Bloomberg<\/a>, Leavitt&rsquo;s comments Thursday were the first public mention by the Trump administration of either closing the carried interest deduction or ending special tax breaks for sports team owners.<\/p>\n<p>Finally, Leavitt&rsquo;s reference to tax cuts for American-made products is regarding a <a href=\"https:\/\/www.westernjournal.com\/trump-reveals-exactly-fix-biden-harris-econ-disaster-will-rapidly-defeat-bidenflation\/\" target=\"_blank\" rel=\"noopener\">campaign proposal<\/a> Trump made while speaking to the Economic Club of New York in September.<\/p>\n<p>His plan calls for &ldquo;a reduction in the corporate tax rate from 21 percent to 15 percent, solely for companies that make their product in America.&rdquo;<\/p>\n<p>Trump argued that this policy would encourage more manufacturing to take place in the U.S. and thereby create more jobs.<\/p>\n<p>Economists from Harvard, Princeton, the University of Chicago and the U.S. Treasury <a href=\"https:\/\/www.westernjournal.com\/harvard-us-treasury-economists-forced-admit-trump-tax-cuts-worked-advertised\/\" target=\"_blank\" rel=\"noopener\">concluded<\/a> in a 2023 report the Trump corporate tax reform worked as advertised in terms of stimulating economic growth.<\/p>\n<p>The Wall Street Journal&rsquo;s James Freeman&nbsp;<a href=\"https:\/\/www.wsj.com\/articles\/the-trump-corporate-tax-reform-worked-7670b723\" target=\"_blank\" rel=\"noopener\">wrote&nbsp;<\/a>in a summary of the 51-page National Bureau of Economic Research<a href=\"https:\/\/conference.nber.org\/conf_papers\/f191672.pdf\" target=\"_blank\" rel=\"noopener\">&nbsp;report<\/a>&nbsp;that the 2017 Tax Cuts and Jobs Act created a surge in business investment, which greatly benefited the economy.<\/p>\n<p>The Trump tax cuts permanently <a href=\"https:\/\/taxfoundation.org\/blog\/trump-corporate-tax-cut\/\" target=\"_blank\" rel=\"noopener\">reduced the corporate tax rate<\/a> from 35 percent &mdash; the highest in the industrialized world &mdash; to 21 percent, which is slightly below average among developed countries.<\/p>\n<p>The new business activity spurred by the lower tax rates sent <a href=\"https:\/\/www.westernjournal.com\/top-economist-shows-trumps-corporate-tax-plan-will-boon-american-business-worked\/\" target=\"_blank\" rel=\"noopener\">corporate tax revenues<\/a> from approximately <a href=\"https:\/\/fred.stlouisfed.org\/series\/FCTAX\" target=\"_blank\" rel=\"noopener\">$230 billion<\/a> in 2017 to $445 billion in 2023.<\/p>\n<p><a href=\"https:\/\/thehill.com\/homenews\/house\/5131668-house-republicans-trump-legislative-agenda\/?\" target=\"_blank\" rel=\"noopener\">The Hill<\/a> reported that House Speaker Mike Johnson said the hours-long meeting between Trump and GOP lawmakers Thursday went well, and he anticipates the House Budget Committee could begin working on a budget resolution as early as next week.<\/p>\n<div style=\"position: relative;\">\n<div class=\"ff-fancy-header-container\"> \t\t\t \t<\/div>\n<div class=\"entry-submit-correction inner-content\">\n<div class=\"correction-form\">\n<form style=\"display: none;\">\n<div class=\"sc-name-field\"> \t\t\t\t\t\t<label>* Name<\/label> \t\t\t\t\t\t<br \/> \t\t\t\t\t\t<input type=\"text\" name=\"name\" required> \t\t\t\t\t<\/div>\n<div class=\"sc--field\"> \t\t\t\t\t\t<label>* <\/label> \t\t\t\t\t\t<br \/> \t\t\t\t\t\t<input type=\"text\" name=\"\" required> \t\t\t\t\t<\/div>\n<p> \t\t\t\t\t<label>* Message<\/label> \t\t\t\t\t<br \/> \t\t\t\t\t<textarea name=\"message\" required><\/textarea> \t\t\t\t\t \t\t\t\t\t<\/p>\n<div class=\"required-message\" style=\"display: none; 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This announcement came as Trump was meeting with congressional leaders at the White House to discuss elements of a budget reconciliation bill anticipated to feature various tax reforms. During his first term, Congress passed the 2017 Tax Cuts and Jobs Act using this same process. The president has expressed a desire for these tax cuts, most of which are set to expire next year, to be made permanent. According to The Wall Street Journal, some Republican lawmakers are considering a five-year extension to minimize costs when evaluated by the Congressional Budget Office, which assesses over a ten-year period.<\/p>\n<p>When asked if Trump would approve a bill with only a five-year extension, Leavitt did not provide a direct answer but mentioned that the president has several tax priorities he wants included in the legislation. These priorities include eliminating taxes on tips and seniors&#8217; Social Security benefits, no taxes on overtime pay, renewing Trump&#8217;s 2017 middle-class tax cuts, adjusting the SALT cap (state and local tax deduction), removing special tax breaks for billionaire sports team owners, closing carried interest loopholes, and implementing tax cuts for American-made products.<\/p>\n<p>Leavitt emphasized that this initiative would represent significant relief for middle-class working Americans and affirmed Trump&#8217;s commitment to collaborating with Congress on this matter. Key aspects of the 2017 tax cuts included nearly doubling standard deductions and increasing child tax credits significantly. The SALT cap limits state and local taxes deductible from federal income taxes\u2014an issue particularly affecting taxpayers in high-tax states like California and New York.<\/p>\n<p>Additionally, Leavitt&#8217;s comments marked an early acknowledgment from Trump&#8217;s administration regarding potential changes related to carried interest deductions or special breaks for sports team owners. Lastly, she referenced Trump&#8217;s proposal aimed at reducing corporate taxes specifically for companies manufacturing in America as part of his broader economic strategy designed to boost domestic production and job creation.<\/p>\n<p>Economists have noted positive outcomes from previous corporate tax reforms under Trump\u2019s administration; reports indicate substantial growth in business investment following reductions in corporate rates from 35% down to 21%. Following these changes, corporate revenue increased significantly between 2017 and 2023.<\/p>\n<p>House Speaker Mike Johnson remarked that discussions between Trump and GOP lawmakers were productive during their lengthy meeting on Thursday; he anticipates progress towards drafting a budget resolution could begin soon<\/p>\n","protected":false},"author":1,"featured_media":2400002,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","fifu_image_url":"https:\/\/www.westernjournal.com\/wp-content\/uploads\/2025\/02\/trump-for-feb.-6-2025.jpg","fifu_image_alt":"","footnotes":""},"categories":[33651],"tags":[49953,3634,32127],"class_list":["post-2400001","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-the-western-journal","tag-tax-cut","tag-trump","tag-white-house"],"fifu_image_url":"https:\/\/www.westernjournal.com\/wp-content\/uploads\/2025\/02\/trump-for-feb.-6-2025.jpg","_links":{"self":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2400001","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/comments?post=2400001"}],"version-history":[{"count":3,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2400001\/revisions"}],"predecessor-version":[{"id":2400005,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2400001\/revisions\/2400005"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media\/2400002"}],"wp:attachment":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media?parent=2400001"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=2400001"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=2400001"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}