Trump has released reported tax plan, including no tax on tips, Social Security for seniors, or overtime pay

President Donald Trump outlined his tax priorities to a group of House Republican lawmakers at the White House on Thursday, revisiting proposals to raise taxes on some financial elites and eliminate tax breaks for sports team owners.

Trump also reaffirmed his campaign promises to extend expiring provisions from his 2017 tax cuts and remove taxes on overtime pay, tips, and Social Security, as stated by White House press secretary Karoline Leavitt.

Additionally, Trump proposed tax cuts for "Made in America" products and adjustments to the state and local tax deduction, a key request from Republicans in swing districts.

The meeting occurred as House Republicans struggle to present a unified tax plan and fend off Senate GOP efforts to bypass them. House Speaker Mike Johnson, Ways and Means Chair Jason Smith (R-Mo.), and other House Republicans attended to lobby for their approach, which includes combining Trump’s tax agenda with other key priorities in a single, broad bill.

Meanwhile, Senate Republicans announced plans to proceed with their own proposal, which would incorporate Trump's policies on energy, border security, and defense, leaving tax issues to be addressed later.

Some House Republicans, particularly those who aim to reduce the tax plan’s impact on the deficit, have expressed a preference for the two-bill approach and were present at the White House meeting.

Leavitt also mentioned the idea of eliminating the "carried interest deduction loophole," which typically allows private equity managers to pay a lower tax rate on their income, taxed as long-term capital gains (20%) instead of the top ordinary income rate (37%). Trump had proposed this in his 2017 tax plan, but it was diluted due to strong opposition from the financial sector, with only a change in the holding period to qualify for the lower rate.

This proposal is expected to face similar resistance.

Trump has also previously suggested raising taxes on football leagues, particularly during the 2017 controversy surrounding NFL players kneeling during the national anthem. At the time, his press secretary Sarah Huckabee Sanders noted that tax-exempt bonds helped fund the construction of public stadiums for the National Football League.

Importantly, the White House’s list did not address the overall corporate tax rate, as the potential cost of trillions in tax cut extensions and new policies continues to grow.

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