Trump Considers New Middle-Class Tax Cut Plans

Former President Donald Trump is contemplating a new middle-class tax cut upon returning to office, as per insiders familiar with his discussions.

Advisers proposed reducing the federal payroll tax, though it could impact Social Security and Medicare funding. Earlier, in 2020, Trump had allowed temporary payroll tax deferrals during the COVID-19 pandemic.

Other suggestions include raising the standard deduction and cutting marginal income tax rates for middle earners. While these talks are preliminary, they highlight Trump’s focus on middle-class tax relief. The success of these reforms largely hinges on Congress, although minor tax code adjustments can be made via executive order.

Trump’s economic advisors include Stephen Moore and Larry Kudlow. Campaign spokesperson Karoline Leavitt affirmed Trump’s commitment to tax cuts and revitalizing the energy sector to combat inflation and debt. IRS data confirms that Trump’s previous tax cuts predominantly benefited lower- and middle-income households.