Trump's Tax Slalom: A Firework of Promises Before the Elections

Donald Trump is unfolding a remarkable panorama of new tax initiatives in the primary campaign. Recently, he surprised with two new promises: the full deductibility of car loan interest and tax cuts for Americans abroad. These latest proposals raise the list of his tax promises to at least ten, including the expansion of his 2017 tax reforms with exotic additions such as the elimination of taxes on tips and overtime. However, the financial plan for this ambitious package remains nebulous and could even face skepticism within the Republican Party. The Committee for a Responsible Federal Budget estimates the cost of Trump's proposals to be over $9 trillion in the coming decade—a sum that astonishes experts, especially as detailed calculations are lacking. In a manner typical of Trump, he addresses specific voter groups with tailor-made tax reliefs. Before restaurant employees, he highlighted the planned tax exemption for tips, while in Detroit, the 'Motor City,' the focus was on the deductibility of car loan interest. For seniors, he promised the elimination of taxes on Social Security benefits. However, Trump's promises could cement significant inequities in the tax system. An analysis by Yale University's Budget Lab indicates that two individuals with identical gross income could be subject to different tax pressures, depending on whether their income includes tips or overtime. Democratic voices are not pleased with Trump's announcements. The chair of the Finance Committee, Ron Wyden, called the proposals 'as wrong as Trump’s tan.' He points out that Trump is promoting his plans despite lacking support from his own party. Moreover, Trump is presenting a residential property offensive that aims to promote home ownership through tax incentives. According to estimates, this measure could cost up to $350 billion. Additionally, Trump is considering reducing the corporate tax rate to 15% and lifting the cap on SALT deductions, an issue particularly close to the hearts of coastal and Democrat-governed states. The question arises as to how many more promises Trump will unveil in the remaining weeks before Election Day. Meanwhile, Vice President Kamala Harris is advocating her own tax plans, including the expansion of the child tax credit, a topic that even Trump's vice-presidential candidate JD Vance shows sympathy for.