While Elon Musk, DOGE, and tariffs have been in focus since the start of the Trump 2.0 administration, one thing Americans should keep in mind as they head into 2025 are Trump’s tax policies. While on the campaign trail the now commander in chief made at least a dozen tax cut promises, ranging from no tax on tips, no taxes on overtime, and no taxes on social security benefits, to name a few.
This week on Capitol Gains, Pangea Policy Founder Terry Haines joins the show to talk with anchor Madison Mills, Washington Correspondent Ben Werschkul, and Senior Columnist Rick Newman about which of these promises are likely to get approved by Congress.
“Tax on tips is probably the most likely because it is the oldest ask from Trump and the one he keeps going back to,” Haines says. “The other one I would put in the list is the reinstatement of SALT. The reason why I do that is very simply politically - you have got to have New York/New Jersey members, Republican members, in order to pass the bill in the House so it’s going to be in there”
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Haines goes on to discuss the federal deficit under the Trump administration.
“The budget top line in the House would increase the deficit by about $3 trillion over 10 years. That’s because the top line overall would be $4.5 trillion and they’re asking for the committees to come back with $1.5 trillion in savings, thus the $3 trillion number, Haines explains. “The big question for me is whether the markets balk at that or not. The markets have a say in this and in this case, once the degree of deficit increase becomes clear.”
To learn more, listen to the full episode of Capitol Gains here.
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Capitol Gains is Yahoo Finance’s unique look at how US government policy will impact your bottom line long after the Presidential election polls have closed.
This post was written by Lauren Pokedoff.