Trump laid out six tax priorities in a meeting with Congress

The WSJ reports that Trump highlighted six priorities:

1. No tax on tips, Social Security, overtime pay
2. Renew 2017 tax cuts
3. Adjust SALT cap
4. Eliminate tax breaks for “billionaire sports team owners”
5. Close carried interest tax deduction loophole
6. Tax cuts on products made in America

I find it interesting that the word ‘renew’ is used here on the 2017 tax cuts as Bessent earlier was talking about making it permanent. Though with Congressional spending rules, it would be extremely hard to make it permanent anyway.

As for all of this, it’s going to be a real battle. The US deficit right now is 7% of GDP. There is plenty of noise about DOGE cutting USAID spending but that’s just 0.7% of all US spending. The real meat of it is interest (can’t cut that), defense, medicare/medicaid. Good luck cutting in those.

This article was written by Adam Button at www.forexlive.com.