- 2017 tax cuts made permanent for 90% of households
- New exemptions for service workers earning under $160k annually
- $200 firearm suppressor tax eliminated after 91 years
- 10% indoor tanning levy repealed effective January 2026
- EV and solar tax credits sunset by December 2025
President Trump's sweeping tax proposal would fundamentally reshape America's fiscal landscape through aggressive revenue reductions. The Congressional Budget Office estimates the plan could reduce federal income by nearly $2.5 trillion over the next decade, drawing fierce debate about economic impacts.
Service industry workers stand to gain immediate benefits under the proposed tip and overtime exemptions. A bartender in Miami earning $58,000 annually with $22,000 in tips could keep an additional $4,125 yearly. However, the 2028 expiration date raises questions about long-term financial planning for hourly workers.
The legislation's firearms provision marks a historic shift in weapons regulation. By removing the $200 transfer tax on silencers established during Prohibition-era gang violence, the bill aligns with NRA priorities but faces opposition from law enforcement groups. Phoenix PD reported a 38% increase in suppressor-related evidence tampering cases during similar state-level trials.
Environmental economists warn the green energy rollbacks could slow renewable adoption by 12-18% nationally. California's solar sector, which installed 48% of new US residential panels in 2024, faces particular risk. San Diego-based SunPower Solutions estimates 650 local jobs could disappear if the 30% installation credit vanishes.
High-tax states receive partial relief through adjusted SALT deductions, though the compromise leaves both parties dissatisfied. A New Jersey family earning $475k would save $9,200 annually under the raised cap - 63% less than full deduction restoration. This complex balancing act reflects broader tensions between deficit hawks and tax reformers.
Education cuts emerge as the bill's most contentious domestic policy change. The proposed $330 billion reduction in student aid coincides with new repayment terms that could extend loan periods by 4-7 years for recent graduates. Financial aid officers at Texas State University report 72% of current students would lose eligibility for existing forgiveness programs.