The world of politics is always full of surprises.  Recently Trump had a meeting with GOP leaders.  Trump wants to change some tax rules. He wants to stop certain tax benefits that billionaires like sports team owners get.  He also wants them to to close some  tax benefits for hedge fund managers.  Trump wants to use the money from these changes to help the middle class.  It’ is not clear if the Republican-led House and Senate will approve Trump’s proposal.

        Throughout his meeting, President Trump suggested both removing the cap on state and local taxes and ending taxes on tips, overtime, and Social Security benefits.  Trump wants these changes to be a part of a big tax cut package for the middle class.  He claims this would be the biggest tax cut in history. He believes that the tax cuts would boost the economy.  This would mean more tax revenue in the long run.

       Some people don’t know where all the Republicans stand on these issues.  Some want changes to the tax laws now.  Others don’t. There are other issues that Republicans may have to deal with as well, such as the debt limit, which was suspended until June.  The Republicans have to decide whether to include it in a larger package or to handle it separately.

       Trump's plan includes closing some tax loopholes for billionaires. These changes would help pay for some of the tax cuts for the middle class.  Billionaires currently get big tax cuts for things like sports teams.

        Some people are worried about how the government will make up for the loss of tax revenue.  Trump has suggested using higher tariffs on imported goods as a way to finance the tax cuts. The federal government will lose a significant amount of tax revenue from these changes, according to the Tax Foundation.  They estimate this will cost $118 billion for the federal government each year.  The looming tax reform struggle comes as Trump’s administration tries to cut federal discretionary spending as part of the Department of Government Efficiency initiative.  Trump is worried that his administration will lose some federal funds.  Therefore he has asked federal workers to take buyouts.  He also is pausing foreign aid.  This makes people wonder if Trump’s tax plan will really help the middle class.  Will people like Trump’s plan?  Or will it just help the wealthy?  We can’t know for sure until the plan becomes law.  Only time will tell.

Trump's Tax Quest: Can He Score for the Middle Class?

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