Trump's Risky Tax Cut Proposal Could Cost Gov't Over $1 Trillion

Back in 2018, former president Donald Trump claimed that he and congressional Republicans were developing a major new tax cut aimed at the middle class, as confirmed by OKMagazine.com. “We’re putting in a resolution some time in the next week and a half to two weeks [and] we’re giving a middle-income tax reduction of about 10 percent,” Trump said at the time.

Trump’s proposal was never ultimately implemented. During the 2024 race, Trump appears to be doubling-down on this previous commitment. However, projections show that eliminating taxes on overtime pay could cost around $1.1 trillion over ten years. The Committee for a Responsible Federal Budget estimates that removing the state and local tax deduction (SALT) cap would increase the cost of extending the 2017 tax law by $1.2 trillion.

“This is not for business, this is for middle income, and that’s on top of the tax decrease that we’ve already given them,” Trump added.

Critics have since argued that the claim was ultimately proven to be false.

No one in Congress was actually working on such a plan, and White House officials were reportedly puzzled by Trump’s proposal.

Fast forward nearly six years, and Trump is now suggesting he would roll back parts of his previous tax law.

The new plan, now announced just weeks before the 2024 election, includes reinstating the state and local tax deduction (SALT).

Despite a lack of specifics in his proposals, critics have noted that Trump has continued to make sweeping promises about tax cuts without providing details on their feasibility or cost.

His recent tax ideas, including eliminating taxes on overtime pay and Social Security benefits, could collectively cost trillions over the next decade.

Critics argued that such proposals are not genuine tax policies but rather desperate attempts to gain popularity among voters.

Trump’s Risky Tax Cut Proposal Could Cost Gov’t Over $1 Trillion