Trump Proposes Tax Cuts for Earners Under $200,000

Former President Donald Trump has proposed reducing or potentially eliminating income taxes for Americans earning less than $200,000, arguing that revenue from tariffs could offset the loss in tax income. Trump claims this policy would benefit middle-class Americans and stimulate job creation, with new plants and factories being built or planned. However, economists have questioned whether tariff revenues could realistically replace income taxes, and Trump's tariffs have sparked concerns about higher consumer prices and a possible recession. Polls indicate growing public anxiety over his economic agenda, with declining approval ratings for his handling of the economy. The administration is also seeking to extend and expand prior tax cuts, exempt certain types of income, and lower the corporate tax rate. Treasury Secretary Scott Bessent maintains the administration is negotiating with trading partners to mitigate potential negative effects from the tariffs.