The Donald Trump tax cuts would extend Donald Trump’s tax cuts beyond the due date -scheduled for 31st -avoiding tax increases and adding some new ideas, including Trump’s versions to eliminate tips, overtime payment and social security benefits.
The maximum tax rate would remain at 37%after the president’s flirtation with a higher level for millionaires.
An initial version released on Friday would reduce the IRS by $ 4.9 trillion. But Republicans intend to reach a goal of no more than $ 4 trillion to $ 4.5 trillion, so today’s additions need to raise more money by eliminating tax incentives and other changes.
Here are some highlights of the proposal released on Monday:
Credit for the purchase of new electric vehicles (EVs) would end on December 31, except for manufacturers who sold less than 200,000 vehicles, which would receive another year. Credits for commercial and used EVs would end after 2025.
Credits for renewable energy production or investments will begin to decrease by 2029 and will be eliminated after 2031. The bill includes new limits for the sale of tax credits, restricting a market that has grown a lot since the Inflation Reduction Law in 2022. Fiscal credit for clean hydrogen production would end after 2025, allowing projects that start to be built this year.
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The plan also provides exemption from tipping and overtime tax, which would start in 2025 and expire after 2028. Tips reduction was written so that it can be claimed by people working as independent service providers.
In addition, Republicans did not propose an increase in taxes that, according to rumors, would be a limit to companies’ ability to deduce their state and local taxes.
