Trump will call for new form of tax cuts: Fox News
TL;DR
Former President Trump proposes new tax cuts, including simplified deductions and a lower corporate tax rate, to boost economic growth, but faces mixed reactions from economists and uncertain political support.
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Trump will call for new form of tax cuts: Fox News
Trump Proposes New Tax Cut Framework Amid Economic Debate
February 24, 2026
Former President Donald Trump has announced plans to advocate for a revised tax cut strategy, emphasizing simplified deductions and reduced corporate tax rates. The proposal, outlined during a recent policy speech, aims to stimulate economic growth by increasing disposable income for individuals and lowering compliance costs for businesses.
The framework suggests maintaining individual income tax rate reductions introduced in prior administrations while introducing a flat-rate deduction system to replace current progressive brackets. Additionally, Trump's plan proposes lowering the corporate tax rate from 21% to 15%, aligning it with rates in select competitor economies. These measures would be offset by proposed restrictions on tax loopholes for multinational corporations.
Economists have offered mixed assessments. Proponents argue that simplified tax structures could reduce administrative burdens and encourage business investment, potentially boosting long-term GDP growth by 0.5–1.2% annually. Critics, however, caution that reduced federal revenue may strain fiscal sustainability, particularly amid rising national debt levels. The nonpartisan Tax Policy Center notes that such cuts could exacerbate deficits unless paired with spending reforms.
Political analysts highlight the proposal's alignment with Trump's broader economic philosophy, which prioritizes supply-side incentives. However, congressional support remains uncertain, given bipartisan skepticism about pre-pandemic tax cut efficacy and current fiscal constraints.
Market reactions have been muted, with equity indices reflecting cautious optimism. The S&P 500 edged up 0.3% following the announcement, driven by gains in industrial and financial sectors.
Details on implementation, including phased rollouts or conditional triggers, remain under development. The Treasury Department has not yet commented on the proposal's feasibility.
As the 2026 election approaches, the plan underscores ongoing debates over tax policy's role in economic resilience, with stakeholders awaiting further analysis of its distributional and macroeconomic impacts.
[引用越界:1]: Fox News, February 24, 2026.
