In his March 4th congressional address, President Trump called on Congress to pass "tax cuts for everybody," including specific tax proposals that he campaigned on or otherwise proposed while in office, as discussed here and here. President Trump's current tax proposals remain in limbo, as the House and Senate have not agreed whether to include tax cuts in a single budget reconciliation bill or instead employ a two-part budget reconciliation bill with tax cuts included in the future bill, as previously discussed here. Whether President Trump's speech successfully persuades Congress to take up a single budget reconciliation bill, inclusive of tax cuts, remains to be seen.
President Trump's speech discussed various business and individual tax proposals, including:
Business Tax Proposals
- Imposing tariffs on foreign imports and imposing reciprocal tariffs against other countries as of April 2, 2025. In this regard, President Trump recently implemented various tariffs, including on steel and aluminum imports and various other Canadian, Chinese, and Mexican imports, and also proposed additional tariffs. In response, multiple countries imposed or threatened retaliatory tariffs.
- Reducing taxes on domestic production and manufacturing.
- Providing 100% bonus depreciation on qualified property, retroactive to January 20, 2025.
- Eliminating tax credits for manufacturers of semiconductors.
- Providing tax incentives for the shipbuilding industry.
Individual Tax Proposals
- Providing "permanent income tax cuts all across the board," likely by indefinitely extending the TCJA's otherwise expiring tax provisions, which are discussed here.
- Allowing individuals to deduct interest payments on loans for cars made in America.
- Eliminating taxes on tips, overtime, and seniors' social security benefits.
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