In the recently concluded US presidential election 2024, economic problems were a motivating factor for voters, resulting in the return of Donald Trump to the White House.
Now, experts predict that the President-elect could put more money in Americans’ pockets through major tax code changes.
During his campaign, Mr. Trump placed a large emphasis on reducing taxes on benefits as well as other Social Security benefits, suggesting a total overhaul of the income tax with the hope of replacing the revenue with tariffs.
According to the New York Post, expansion and expansion of tax changes is at the top of Donald Trump’s agenda.
Among the wish-list items of the extended tax cut programme, the main focus will be on cutting corporate tax rates. Earlier, Mr Trump had reduced the corporate tax rate from 35% to 21% in 2017. Now he plans to bring it down to 15%.
The report quoted Grover Norquist, activist and president of Americans for Tax Reform, as saying, “When you reduce the corporate rate by 2% so wages go up by 1%, corporations have more to invest in workers.” There is money.”
Not only this, Mr Trump has also promised his voters to reverse a provision of his 2017 tax cut package – the $10,000 limit on the famous state and local tax deduction, known as ‘SALT’.
This limit primarily targets residents of high-tax ‘blue’ states, where rising state and local taxes support bloated state bureaucracies. Therefore, the New York Post reports that Donald Trump’s promise to repeal it is likely to lead to an early bipartisan victory.
Long Island Democratic Representative Tom Suozzi, a critic of the cap, said he takes Donald Trump at his word, and holds him accountable for his promise to eliminate the SALT cap.
Mr Suozzi was quoted as saying, “I will work with him and anyone to work on behalf of the people.”
However, insiders have suggested that this repeal may be quite drastic. “The big problem is that it pits high-tax states against low-tax states. said Phil Magness, an economic historian at the independent Institute.
Noting that areas like New York, California and New Jersey have higher state and local tax rates, Magness said this gives people living there an advantage in deductions over people living in lower-tax areas like Florida or Texas.
