President Donald Trump’s new tax proposal, announced by Press Secretary Karoline Leavitt, aims to deliver major relief to middle-class Americans while “closing tax loopholes benefiting the wealthy.” The plan seeks to eliminate taxes on tips, Social Security benefits, and overtime pay — a move Trump’s team says will “put more money in the pockets of everyday workers.”

Supporters believe these changes will help service workers, retirees, and those working extra hours. Critics, however, warn that “the broader implications of the tax cuts could primarily serve corporations and wealthy individuals.”

Key provisions include ending taxes on tips, overtime, and Social Security income, which would “bring significant financial relief to millions of retirees” and service industry employees. The plan also targets the carried interest loophole, allowing hedge fund managers to be taxed more fairly — a promise Trump first made in 2016.

Trump also seeks to extend the 2017 Tax Cuts and Jobs Act, which reduced rates for individuals and corporations, arguing that allowing it to expire “would place unnecessary strain on American households.”

Lastly, the corporate tax rate would drop from 21% to 15%, which Trump says will “encourage job creation,” though critics claim it could deepen inequality and expand the federal deficit.