The White House has unveiled President Donald Trump’s new tax proposal, a sweeping plan aimed at providing relief for middle-class Americans while closing loopholes that benefit the wealthy. Key provisions include eliminating federal taxes on tips, Social Security benefits, and overtime pay—changes the administration says will directly help service workers, retirees, and employees working extra hours.

The proposal also seeks to close the carried interest loophole, extend the 2017 Tax Cuts and Jobs Act beyond its 2025 expiration, and lower the corporate tax rate from 21% to 15%. Supporters argue these measures will stimulate business investment, create jobs, and preserve tax relief for families. Critics, however, warn that corporate cuts will primarily benefit the wealthy and that the plan lacks a clear path to offset lost federal revenue.

Economists and lawmakers remain divided over the proposal’s long-term impact. Proponents say more money in workers’ pockets and fairer tax rules for Wall Street are overdue, while detractors caution the plan could widen the federal deficit and risk future cuts to programs like Medicare and Social Security.

Politically, the proposal has sharpened partisan divides. Democrats denounce it as a giveaway to corporations, while Republicans are split between full support and calls for responsible spending cuts to balance the breaks. With midterm elections looming, Trump’s tax plan is expected to spark one of Washington’s fiercest economic debates in the months ahead.