Trump Tax Cuts in 2025 — My Prediction on What Will Happen

In today's video, we're covering the Trump tax cuts. I'll also be giving you some of my predictions. So we're going to start with this. It's a video clip of the White House press secretary regarding President Trump's tax priorities. So these are the tax priorities of the Trump administration that the president has laid out for members in that meeting today. No tax on tips, which is obviously a very public campaign promise that the president made. No tax on seniors' social security. No tax on overtime pay. Renewing President Trump's 2017 middle-class tax cuts. Again, these are the president's priorities. Adjusting the SALT cap. Eliminate all the special tax breaks for billionaire sports team owners. Close the carried interest tax deduction loophole. Tax cuts for Made in America products. This will be the largest tax cut in history for middle-class working Americans. The president is committed to Okay, now I want to show you this. Here's what the White House posted on their ex-accounts. President Trump's tax priorities. So I want to give you some more insight on each of these items and we'll just go down the line starting with no tax on tips. So just to remind you, this was a campaign promise and a big one by President Trump and he wants to deliver. So I want to show you what he recently said in Las Vegas. So listen, I want to tell you this. I know the first thing that many people are going to think, if none of your income is being made from tips, then how do you get in on this? How do you get in on this benefit? So I'll just tell you that there are ways to reclassify your income as tipped income and then you get your money tax free. I know how. But I'll tell you this, with that being said, it is my belief to stop creative people like me that there will be a limit to how much of tipped income will be tax free. So no details have been released about whether there's going to be a cap. You know, this bill needs to still get drafted. But my opinion is that there's going to be a limitation of how much of your tipped income will be tax free. So you probably haven't heard this prediction that there's going to be a cap because this is my opinion from experience of how this works. But let me answer this. Will this rule help people that make money from tips? And my answer is absolutely. The question is by how much? Which is really asking what's the cap going to be? Now moving on to no tax on senior social security income. First, I want to say it's about time. So this is my opinion. To me, it is ridiculous that we pay in social security taxes. So that's our money. But when we receive it, we have to pay taxes on it. That's tax on tax. That's outrageous. Okay, so I want to show you what President Trump said about this issue. We're going to have no tax on seniors social security. Okay, now I want to show you this. This is a course straight from the IRS website. If you're single, head of household, a widower, or married filing separately, if your income is above $25,000, the IRS taxes 50% of your social security income. So to clarify, it's not a 50% tax rate, but it means that half of your social security income will be subject to tax. If you're married filing jointly, and your combined income is $32,000 or more, the IRS taxes 50% of your social security income. Now if you're single, head of household, a widower, or married filing separately, and your income is above $34,000, and the IRS taxes 85% of your social security income. If you're married filing jointly, that starts at $44,000 of combined income. So this is crazy, because look at how low these thresholds are. It's because they never adjust these figures for inflation. Now this is a very important question. Will Trump try to adjust these thresholds? Or is he going to try to make all of it tax free? I predict that he's going to try to make all of it tax free. That's just my opinion, but let's see what happens. Now let's move on to no tax on overtime pay. So first, I want to show you what President Trump said. I'm also announcing that as part of our additional tax cuts, we will end all taxes on overtime. You know what that means? Think of that. Think of that. Think of that. That gives people more of an incentive to work. It gives the companies a lot. It's a lot easier to get the people. And I went to some economists, great ones, and I said, what do you think? They said, it would be unbelievable. You'll get a whole new workforce by doing that. No taxes on overtime. Okay, so in that video clip, you saw President Trump say, end all taxes on overtime pay. But in my opinion, there's going to be a cap on this, because this one's just going to be so easy to abuse. You don't even have to be creative to abuse this one. Okay, so I want to give you an example. I run my own business. I'm an employee of my own company, and I make my own payroll. So I could do this. So let's just say that I legitimately make $100 an hour, and I legitimately work 40 hours a week. So my total income is $4,000 a week. So my taxable income is all of that. It's $4,000. In other words, all of the $4,000 that I make is subject to tax, right? Okay, now, how could I abuse the system? What I would do is I would cut my pay to $40 an hour, but I would claim that I work 80 hours a week, and that's a lot of overtime. And then my income from regular hours is now $1,600, and my income from overtime is $2,400. So my total income for the week, it's still the same. It's $4,000 a week, but now my taxable income has now fallen to $1,600. In other words, I just made 60% of my income tax-free by reclassifying my hours. So listen, this is just too easy to loophole and manipulate. So I would legitimately be able to make 90% of my earned income tax-free. I would just legit work much more slowly and do a lot of overtime. That's simply what I do. And I would do the same thing for my employees. Why not? I'm a nice guy. And many companies would abuse the system with reclassifying compensation in hours. So you see what I'm saying? There's no way that they're going to make all overtime tax-free. There's going to be limitations. Now, moving on to renewing the Trump tax cuts. So in President Trump's first term, Congress passed President Trump's tax cuts. It was called the Tax Cuts and Jobs Act, also known as the TCJA. And I can tell you from firsthand experience, this was big tax reform. However, those tax cuts, they're expiring at the end of 2025, so this year. Some of those tax breaks, they've already expired or they've been phased out. Now, I want you to be aware of this. Of all the tax-related items that President Trump is talking about, getting this renewed is his number one tax priority. I can say that with 100% confidence. So President Trump and the Republicans may have to compromise on some of the other tax items on that list. However, this one, they're not going to budge on it. My opinion is that this is going to get renewed in full. So that's my prediction. Now, moving on to adjusting the SALT cap. So I want to explain this very simply. So if you pay state income taxes, locality taxes, property taxes, those are all tax deductions on your federal income tax return. But there's a cap. There's a maximum amount that you can deduct. It's $10,000 combined. So it was actually President Trump who capped it at $10,000 in the Tax Cuts and Jobs Act. Now, I want to give you a pop quiz. Which states generally charge higher state income taxes? It's the blue states, the Democrats. So this is actually kind of a funny situation because here you have the Democrats that are fighting for tax cuts and the Republicans, they're fighting against tax cuts. But to be fair, Republican politicians in the blue states do want this to happen. And then you have other states like Texas with higher property taxes. Anyways, it is my prediction that President Trump will increase the cap. It's going to please the Democrats. And this is going to be a great bargaining chip in negotiations. So I believe that this one has a high probability of passing. Moving on to eliminating special tax breaks for billionaire sports team owners. So I think that this has to go. This tax break, it needs to go. If you buy a sports team, you get to claim that as an expense, a tax deduction over the course of 15 years, even if the value is going up. You know what? I'm just going to give you my opinion. To me, I don't like this. Okay, here's why. If I buy a stock and if I just hold that stock, I don't get to claim that as an expense or a tax deduction over the course of 15 years. Why should they be able to? It's my prediction that regarding this, the bigger tax breaks, they're not going to get eliminated. But I think the smaller ones will be regarding this just to put up the illusion that something was done here. So if you're a billionaire watching this, don't worry, your tax breaks are going to be fine. Moving on to this one, closing the carried interest loophole. So here, private equity, venture capital funds, and hedge funds, they get to pay lower income tax rates on their earnings. They pay long-term capital gains rates instead of ordinary tax rates. So essentially, this is a huge tax break for investment managers. I mean, these are the people making hundreds of millions of dollars or billions of dollars. And I couldn't have summed it up better than this headline. This has been a longtime target of Democrats. So this also may be a good bargaining chip in the negotiations. And the last one, tax cuts for made in America products. So these will be corporate tax breaks. Okay, so if this passes, corporations will pay less in taxes and they're going to make more money. Will the corporations pass on those savings to the consumers? You know, it's a good question, right? The answer is absolutely not. Of course not. Like, are you crazy? They're going to enrich themselves, but that's not the point. The purpose of these corporate tax breaks is to attract more companies to the US or to prevent corporations from taking their business elsewhere to other countries. And of course, this ties in with President Trump's plan to revive American manufacturing. So I'm sure that this one's going to pass because this one is at the core of President Trump's goals. Okay, so that's the situation. My prediction is that the Trump tax cuts will renew. And each of these additional items, they all have a shot, each of them, they have a good shot of passing. But the question is, to what extent? And what will the limitations be? So please subscribe. I'll keep you updated on all of this. And thank you so much for the support. And I wish you a very nice day. Take care.