Trump Speech:US President Donald Trump made a historic announcement in a joint session of Parliament on 5 March including a proposal for tax deduction in several areas. Under this scheme, tips, overtime, social security benefits, interest on car loans and tax relief on domestic manufacturing will be given. Trump said that these changes will especially benefit American who are facing increasing inflation. He clarified in his address that now tips, overtime and social security benefits will not be taxed.
With the aim of promoting car manufacturing, the President also announced that interest payments on car loans would be taxed – This facility will only apply to those vehicles that have been manufactured in the US. Trump claims that this will see unprecedented development in the auto industry, as new factories will open and big deals will be happening. For example, many major car companies plan to set up their large automobile plants in the US, including recently announced a huge plant in Indiana by Honda.
In addition, Trump has announced a 100% tax deduction to encourage domestic manufacturing, which will be reberly implemented from 20 January 2025. The President said that the last time tax deduction had brought the US economy to new heights and he is confident that this time also this policy will play an important role in the economic progress of the country.
Finally, Trump reported that his reciperook tariff policy, also known as “as Tit Tax Policy”, will be effective from 2 April 2025. Under this policy, if a country imposes tax on US goods, then America will also tax the same rate on their goods.
