US President Donald Trump said that his administration is seeking permanent income tax cuts for Americans hard hit by inflation.
For this, he said that he was calling for “no tax on tips, no tax on overtime, and no tax on social security benefits for our great seniors,” in his address to a joint session of Congress on Wednesday, March 5, 2025.
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This also comes at a time when prices of various goods in the US are widely set to rise with the tariffs on Canada, Mexico, and China having come into effect on Tuesday, March 4, 2025.
Apart from this, Trump also said that he wanted to make interest payments on car loans tax deductible, but only if the car was made in America.
This comes after a a trade group representing nearly all major automakers warned that the tariffs would lead to drastic price hikes, according to a report by news agency Reuters.
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The Personal Consumption Expenditures price index of the US saw a 2.5% rise in January from the year before, which was slightly down from December’s 2.6% rate, according to the US Commerce Department data released.
Trump also announced that the newly proposed Gold Card “goes on sale very very soon” and will allow “the most successful job creating people from all over the world to buy a path to US citizenship.”
He described the Gold Card as “like the green card but better, more sophisticated,” and announced that those who arrive with the old Card won’t have to pay taxes to the country where they came from.
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