Trump's New Tax Plan: Extending TCJA, Low Corporate Taxes, and Tax Relief for Social Security Recipients

President Trump's new tax plan proposes permanent tax cuts for those earning between $30,000 and $80,000 per year, paying around 15% less in taxes overall. It also aims to eliminate taxes on tips and overtime, and provide tax relief to Social Security recipients. The bill is expected to pass the House of Representatives and will be voted on by the Senate. If not extended, the Tax Cuts and Jobs Act will expire in 2025, leading to increased tax bracket rates, decreased standard deduction, and lower child tax credit. The proposal also aims to maintain low corporate tax rates to encourage business growth and economic competitiveness.

The U.S. House of Representatives has passed the "One Big Beautiful Bill," a comprehensive tax reform package that aims to extend and expand the 2017 Trump tax cuts. The bill, which now heads to the Senate for consideration, promises significant economic benefits, including increased take-home pay for families, wage gains for workers, and job creation for small businesses [1].

The "One Big Beautiful Bill" includes permanent extensions of the 2017 tax cuts and additional pro-growth policies. It is projected to boost economic growth, increase investment, and create millions of jobs over the next four years. For instance, the legislation is expected to raise America's real gross domestic product (GDP) by an estimated 5.2 percent over the next four years and 3.5 percent in the long term [1].

The bill also includes provisions aimed at enhancing tax relief for specific groups. Families with children will benefit from an expanded, inflation-adjusted Child Tax Credit and an enhanced standard deduction. Workers could see wage increases of over $11,000, while family farmers will receive a doubled death tax exemption to protect their generational lands and livelihoods. Additionally, the bill promises no tax on tips, overtime, auto loan interest, and tax relief for seniors [1].

However, critics argue that the bill disproportionately benefits affluent individuals and business owners, potentially exacerbating economic inequality. According to a report by COINOTAG News, the "Beautiful Act" could lead to a substantial income decline for the bottom decile of earners by 2033, while the wealthiest households are anticipated to see their earnings rise [2].

The bill's passage comes as the Tax Cuts and Jobs Act is set to expire in 2025, which could lead to increased tax bracket rates, decreased standard deductions, and lower child tax credits. The proposal also aims to maintain low corporate tax rates to encourage business growth and economic competitiveness [3].

References:
[1] https://waysandmeans.house.gov/2025/05/22/passed-the-one-big-beautiful-bill-moves-one-step-closer-to-president-trumps-desk/
[2] https://en.coinotag.com/breakingnews/impact-of-the-beautiful-act-how-tax-cuts-favor-wealthy-americans-over-low-income-families/
[3] https://taxfoundation.org/research/all/federal/trump-tax-cuts-2025-budget-reconciliation/