President Trump’s new tax plan, announced by White House Press Secretary Karoline Leavitt, focuses on delivering financial relief to middle-class Americans while cracking down on tax breaks that benefit the ultra-wealthy—particularly hedge fund managers and professional sports team owners.
The proposal aims to ease the burden on everyday workers, retirees, and those putting in extra hours. It would eliminate federal taxes on tips, Social Security benefits, and overtime pay—directly helping service industry employees and seniors on fixed incomes.
Key features of the plan include closing long-standing tax loopholes, like the carried interest loophole used by investment managers, and lowering the corporate tax rate to 15% specifically for companies that manufacture goods in the U.S. The administration says the goal is to support American workers and businesses while creating a fairer tax system.
