In a major economic move, White House Press Secretary Karoline Leavitt has unveiled President Donald Trump’s new tax proposal, designed to deliver relief to middle-class Americans. The plan targets federal taxes on tips, Social Security benefits, and overtime pay, aiming to increase take-home income for service workers, retirees, and employees working extended hours. The proposal is already stirring debate in Washington due to its scope and potential economic implications.

The proposal emerges as inflation, lingering pandemic effects, and financial strain continue to burden U.S. households. Trump’s team claims the tax cuts will directly support blue-collar workers and seniors.

However, critics argue the broader plan could disproportionately benefit corporations and high-income earners, undermining its middle-class focus.Key components include eliminating federal taxes on tips, which would notably assist workers in hospitality and personal service industries.

Social Security income would also become tax-free, offering meaningful relief to retirees. These provisions are being marketed as transformative changes to working-class financial well-being.