US President Donald Trump has unveiled a bold economic plan, asking for no tax on tips, overtime, and social security contributions to help Americans who are feeling the pinch of inflation. During his address to the Congress on March 5, 2025, Trump stressed that his government is planning to sign up to permanent tax cut for income to help relieve the pressure on working citizens and seniors.
This comes as tariffs on Canada, Mexico and China that went into effect on March 4, 2025 are expected to increase consumer prices. However, Trump has suggested that interest payments on car loans should also be tax deductible, but only if the vehicle was built in the United States. This move comes after the big automakers warned that new tariffs could increase vehicle prices and hinder production and sales.
Inflation however is still a problem according to the US Commerce Department, the Personal Consumption Expenditures (PCE) price index was up 2.5% in January, just a fraction below December’s 2.6%. Trump’s tax relief plan is meant to offset these economic pressures and boost consumer confidence.
Also, Trump revealed the Gold Card, a new plan to encourage the best talent from across the world. The Gold Card will be a new immigration initiative that will allow individuals who create jobs and add to the economy to fast track to US citizenship. Trump also stated that anyone entering the US with the old Card will not have to pay taxes to their country of origin, thus making the new immigration system more competitive.
As the economic uncertainty rises, it is possible that Trump’s proposed tax cuts and incentives may well revolutionize the financial environment of America and steer the course of policy debates in the future.
