From Yahoo Finance: 2025-06-14 07:00:00

President Trump’s tax plan proposes lower rates, fewer deductions, and changes in how income is taxed. The key concern for Americans is whether they will benefit or lose money. The plan aims to reduce the top individual tax rate to 30%, benefiting households earning over $400,000. Wealthy individuals could capitalize on idle capital gains with new depreciation options.

If passed, Trump’s plan would increase the Child Tax Credit to $2,500 per child, benefiting most families. Middle-income households stand to gain the most, with average credits nearing $3,000. However, low-income families might not receive the full benefit, especially if programs like SNAP and Medicaid face cuts to offset tax breaks.

Pass-through businesses could see lower taxes or expanded deductions under Trump’s proposal. Entrepreneurs and gig workers using LLC structures may benefit from a Qualified Business Income deduction, streamlined reporting, and reduced tax rates. Critics warn that the pass-through deduction heavily favors high earners, cutting their tax rates significantly.

Seniors on fixed incomes could face challenges under Trump’s tax plan, which signals potential changes affecting Medicaid and cost-sharing for beneficiaries. An estimated 16 million Americans could lose health insurance due to policy changes, including impacts on the Affordable Care Act. Medicaid funding cuts could increase pressure on vulnerable populations.

Editor’s note: GOBankingRates is nonpartisan and aims to cover the economy objectively. For more coverage, visit GOBankingRates.com.



Read more at Yahoo Finance: 4 Types of People Who Will Lose (and Make) Money Due to Trump’s New Tax Initiatives