- An option that is discussed in Trump administration Allows you to return to the highest tax rate to help cover the income tax reduced through tips, said a high -ranking White House official Axios. This happens when the decline of President Donald Trump’s taxes from his first term should end at the end of the year, while Congress is working on legislation to extend them.
Trump Administration is considering allowing tax rate on the richest Americans to return to help pay tax reduction income received from advice, Showed a high -ranking White House official Axios.
Termination of taxes on tips He was one of the main commitments of President Donald Trump, and he confirmed it after returning to the White House. But the expansion of previous tax reductions and make them constant also the key to the company.
The 2017 tax and job reduction law became the achievement of Trump’s economic policy in the first term and reduced the higher income tax rate to 37%. The law ends this year, and its failure to comply with the higher rate of up to 39.6%.
Republicans in Congress Create legislation to restore Trump’s tax reduction as well as looking for areas to cut federal costs to help offset some financial impact.
The possibility of a higher rate permit arises when Republicans recognize the political risks of the tax agenda, which the Democrats said they would help wealthy and reduce Medicaid.
‘If we extend tax reducing for rich AxiosAs for the discussion too early, and nothing has been resolved yet.
Really, even a former Trump advisor Steve Benan warned from reducing Medicaid Among the quiet uprising among Republicans representing the working class and low income areas.
“Medicaid, you have to be careful,” Benan said in his podcast last month. “Because a lot of mages on Medicaid, I’m telling you. If you don’t think you’re mistaken.”
The White House did not immediately respond to WealthRequest for comment.
Trump also stated that his steep tariffs are another way to attract federal profits, providing more free time to reduce income taxes.
The weekend reports stated that he was pushing his advisers to get more aggressive in tariffs, perhaps even a The only penalty is up to 20% On almost all US trading partners.
Meanwhile, Eliminating taxes on tips may not be as populist as it seemsBecause the benefits will be limited, while this can worsen the turning off and encourage wealthy Americans to report more about their income.
Families could see that an annual tax account averaged $ 1,700 with a hint tax, the recentReport from the budget laboratoryat Yale University.
But only about 4% of families report the IRS, and they are mostly young, unmarried and lower income, added in the report.
“This means that many tilted workers do not pay income tax to start and will not benefit from the new deduction,” the statement reads.
From the Flip, separately report Last month, the Institute of Economic Policy warned that high -income experts like lawyers, Financial consultantsand accountantscan report your fees as tips to avoid tax payment.
In addition, some sloping employees with low income will lose money, no longer have the right to a profit loan and tax loan for the child, according to the report, while employers will be less incentive to attract basic payment.
“The regressive tax receipt that encourages the spread of fracture is not useful for workers who really need help, and of course not a” rescue circle “,” said ep. “
Originally this story was presented on Fortune.com
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2025-03-31 17:26:00
Jason Ma
