Trump's New Tax Plan Faces THIS Reality Check: Will It Pass?

President Donald Trump laid out his tax plan last week, which included many provisions that he had promised during his 2024 campaign trail. The 47th President is hoping to pass in Congress a range of provisions, from the elimination of tax on tips to the extension of the 2017 tax cuts. However, the 78-year-old's plans might not make it through the House of Representatives due to division within the Republican party.

What Are Key Aspects of Trump's Tax Plan?1. No tax on tips, senior's social security, and overtime pay

2. Renewing Trump's 2017 tax cuts

3. Adjusting state and local tax (SALT) cap

4. Eliminating special tax breaks for 'billionaire sports team owners'

5. Tax cuts for 'Made in America' products

6. Closing the carried interest loophole

What Reality Check Does Trump's Tax Plan Face In The House?

Republicans hold a three-seat majority (218-215) in the House of Representatives, the slimmest majority in the history of Congress in nearly 100 years, which makes it tough for Speaker Mike Johnson to pass any legislation, especially the massive package of tax cuts, energy policy, health care, and border security funds that he is proposing. The opposition is coming from within his conference as deficit hawks, those who want to reduce the federal deficit, say they would not support this package without more spending cuts.

Trump has proposed the elimination of tax on tips, overtime pay, and senior social security benefits without outlining ways to make up for that lost revenue in the federal budget. His proposal to adjust the SALT cap would also mean the Treasury would have less money to spend. So, the real challenge for the survival of any of Trump's tax proposals, which have been supported by the House GOP conference, would be finding significant spending cuts to offset the deficit.

Another challenge to the tax plan could come from House GOP Freedom Caucus members. HFC Chair Rep. Andy Harris, R-MD, told reporters that the group would be releasing its own plan this week, which will be different from the one Johnson has proposed and might not necessarily include all of Trump's tax proposals. "It’s unclear the president prioritizes all of them, but the ones that the president wants, plus the extension of the tax cuts, especially the ones that would result in economic growth,” Harris said.

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