Understanding Trump's Tax Reform Proposals

What is one of the main goals of Trump's tax reform plan?

• To reduce the national debt

• To stimulate economic growth

• To increase federal revenue

• To increase tariffs on imports

How would making tips tax-free potentially affect service industry workers?

• It would increase the federal minimum wage

• It would eliminate the need for standard deductions

• It would allow workers to keep all their tips without federal tax deductions

• It would guarantee higher base wages

What is a potential downside of making tips tax-free?

• Employers might lower base wages

• It would decrease the number of tipped jobs

• It would require workers to report more income

• It would increase federal taxes

What is the current tax situation for Social Security benefits?

• They are only taxed for married couples

• They are taxed at a flat rate

• They are taxed if income exceeds certain thresholds

• They are always tax-free

What financial challenge does eliminating taxes on Social Security benefits pose?

• It could lead to increased benefits

• It could exacerbate Social Security's funding issues

• It could reduce the retirement age

• It could increase payroll taxes

What is the intended benefit of eliminating federal income tax on overtime pay?

• To increase base wages

• To decrease overall earnings

• To encourage people to work more hours

• To reduce the number of overtime hours worked

How might employers respond to tax-free overtime pay?

• By reducing overtime opportunities

• By lowering base wages

• By offering more salary raises

• By increasing base wages

What is the purpose of making car loan interest tax deductible for American-made vehicles?

• To increase federal revenue

• To increase car prices

• To encourage the purchase of American-made vehicles

• To reduce the number of cars on the road

What factors do people consider when buying a car, aside from tax incentives?

• Price, fuel efficiency, reliability, and personal preference

• Only the brand of the car

• The color of the car

• The number of seats in the car

What is a potential financial implication of making car loan interest tax deductible?

• It could increase federal revenue

• It could increase the cost of American-made vehicles

• It could reduce federal revenue by up to $10 billion annually

• It could have no impact on federal revenue