**Trump's Proposed Tax Reforms Aim to Reduce Burden on Americans and Businesses**

President-elect Donald Trump is looking to put more money into the hands of Americans through significant changes to the tax code, according to insiders and industry experts. During his campaign, he repeatedly pledged to reduce taxes on tips and social security benefits and even suggested eliminating income taxes entirely in favor of revenue from tariffs.

With the tax cuts from Trump's first term set to expire in 2025 and the likelihood of Republican control in Congress, extending and expanding these tax reforms are high on his agenda. A major component of Trump's proposed expansion is further reducing corporate tax rates. In 2017, Trump lowered the corporate tax rate from 35% to 21%, and he now aims to bring it down even further to 15%. Grover Norquist, a key figure in GOP tax initiatives and president of Americans for Tax Reform, stated, "When you reduce the corporate rate by 2%, wages go up 1%, and corporations have more money to invest in workers." Norquist also believes that House and Senate leaders will support this reduction.

Another significant target of Trump's tax reform is reversing the $10,000 cap on state and local tax deductions, known as SALT, which was introduced as part of his 2017 tax law. This cap predominantly affects residents in high-tax, blue states where state and local taxes fund extensive government operations. The promise to repeal the SALT cap could become an early bipartisan achievement. Democratic Representative Tom Suozzi of Long Island, an opponent of the cap, expressed his commitment to holding Trump accountable and working with him to eliminate it.

However, the removal of the SALT cap presents considerable challenges. The issue pits high-tax states like New York, California, and New Jersey against low-tax states such as Florida and Texas. Phil Magness, an economic historian at the Independent Institute, pointed out that the disparity in tax rates creates an advantage for residents in high-tax states over those in low-tax states regarding deductions. Additionally, far-left progressives are likely to resist what they see as a tax cut favoring the wealthy. Representative Alexandria Ocasio-Cortez has previously criticized attempts to eliminate the SALT cap as a "gift to billionaires."

Norquist speculated that while fully lifting the SALT cap might be unlikely, increasing the deduction could be a feasible compromise. As Trump's administration prepares to push these tax reforms, the debate over their implications for different states and income groups will undoubtedly intensify.