$4.5 Trillion Trump Tax Cuts Approved By House

In today's video, let's cover President Trump's bill to cut taxes because there seems to be a lot of confusion about this and I want to help clear it up. So on February 6th, here's what the White House posted on X. A list of President Trump's tax priorities. No tax on tips, social security, overtime pay, renewing the Trump tax cuts, adjusting the salt cap, among other items. And on that same day, I want to show you what the White House press secretary said so that this is crystal clear. So these are the tax priorities of the Trump administration that the President has laid out for members in that meeting today. No tax on tips, which is obviously a very public campaign promise that the President made. No tax on seniors' social security. No tax on overtime pay. Renewing President Trump's 2017 middle class tax cuts. Again, these are the President's priorities. Adjusting the salt cap. Eliminate all the special tax breaks for billionaire sports team owners. Close the carried interest tax deduction loophole. Tax cuts for made in America products. This will be the largest tax cut in history for middle class working Americans. The President is committed to working with Congress to get this done. Okay, now I want to show you what the word on the street is about President Trump's bill to cut taxes. So I'm going to show you a video clip from TikTok that got 14 million views. So please take a look. Trump's tax bill was just released and guess what? It doesn't include no taxes on tips. No taxes on overtime and no taxes on social security. So just another thing he lied to you about so he could get tax cuts for his rich friends. Okay, so you just heard that. That was the full clip. That wasn't taken out of context. So this person is saying that Trump's tax bill was released and it does not include those tax cuts. So is this true? The answer is that the bill hasn't even been written yet. So what this TikToker was referring to is the budget resolution, which is a framework asking for money. It's not the bill with details. So it's crazy how this guy claims to know what's in a bill that hasn't even been written yet. Now I want to tell you what's really going on. Okay, so here's how it works. Phase one is the budget resolution. So this sets the overall spending amounts. And then phase two is that they have to vote on the budget resolution. They're going to vote in the House and the Senate. And then phase three, it's going to go to the reconciliation process. This is when the committees draft the legislation. This is when they write the bill. Phase four is when they vote on the bill in the House and the Senate. So right now they're going through the budget process, which is phase two, and then they're going to write the bill after that. Now I want to show you the budget resolution. So this is the House version. So if you go to page 45 of the budget resolution, you're going to see this. Committee on Ways and Means. So this is the committee that determines tax policy. So it says that they want tax reductions of $4.5 trillion over the course of the next 10 years. So this is all that it says. This is not the bill. So this is just asking for the quantity of money. Of course, they're not going to list out no tax on tips, no tax on Social Security. It doesn't even say renew the Trump tax cuts, the TCJA. Again, that gets taken care of in the next step after the budget resolution passes. Now I just want you to take a look right above as another example. They're requesting $10 billion for transportation. Again, this is the budget, not the bill, with the details of how they're going to be using that money on transportation. Okay, so can I show you what national defense looks like in the budget resolution? 2025 budget. Does it give a line-by-line itemization of defense spending? Of course not. This is not the bill. It's a budget resolution. Okay, so maybe it'll give more details for defense spending in 2026. Nope. Now do you really need me to show you 2027? You probably get the picture and you don't want to see it. But boom! Too late. There it is. Same thing. No details of how the money is going to be spent. Okay, so you have situations like this with this TikToker. Is this, I mean, you tell me. Is this an honest mistake? Like he doesn't know what's going on? Or does he know the truth and is he spreading misinformation? But I'll tell you that people are catching on. So I'm going to show you this last clip and then we'll get back to tax cuts. Trump's tax bill was just released and guess what? It doesn't include no taxes on tips, no taxes on overtime, and no taxes on social security. So just another thing he lied to you about so he can get tax cuts for his friends. First of all, Donald Trump released a budget proposal. Out of all people, I thought this person would know. And the sad thing about it is that he most likely does know, which makes me think, why is he spreading false information? So in order for these three to go into effect, they need to be each individually taxed laws, which means it has to be passed as a law, as any law goes through. So you tell me, do you guys think these laws would pop up on a budget proposal? That's insane. And most importantly, as soon as Donald Trump brings this up that he's going to be making these into laws, do you think after he brings it up, they're going to go into a law the next day? Which again, this guy knows. So why is he spreading misinformation? So for these laws to occur, it has to pass through the house, then it has to go through the Senate, and if the Senate passes it, it goes back to the president to be signed as a law. So why is this person making up a lot of false information? What are your thoughts on this, guys? Okay, so now let's get back to the tax cuts. So what do we know? We know that President Trump wants tax reductions of $4.5 trillion over the course of 10 years, right? Now, is that enough money to cover the cost of renewing the Trump tax cuts of 2017, the TCJA, and follow through on his promises of no tax on tips, no tax on social security, overtime, and other items? Well, let's see if the math checks out. So I want to show you the breakdown of Trump's tax promises. So this is coming from the Committee for Responsible Federal Budgets. So remember, $4.5 trillion, that's the number to work with. But look here, renewing the 2017 tax cuts will cost $3.9 trillion on the low end and $4.8 trillion on the high end. So if renewing the 2017 tax cuts is on the low end at $3.9 trillion, that leaves some wiggle room for his newer promises, but not enough to carry through on all of them. So the promises that Trump made, you know, outside of renewing the 2017 tax cuts, comes out to $1.1 trillion, but there would only be enough room for $600 billion. So this is why I made my prediction in my earlier video, that if these promises make it into the bill, it is my expectation that they're going to be watered down with limitations and restrictions to make them less expensive for the government. Now, here's another way that it could play out. So you see this estimate, $3.9 trillion on the low end and $4.8 trillion on the high end, right? This is the expected cost of renewing the Trump tax cuts in its original form. So you have to remember that multiple pieces of the original tax cuts of Trump's tax cuts have already expired. So if Trump renews the tax cuts in its current form, like as of right now, then it would be about $800 billion cheaper, which would leave up to $1.4 trillion of wiggle room. Okay, so that's how the math breaks down. Another option, of course, is that President Trump backtracks on his promises. But I mean, could you imagine how bad the backlash would be if he were to do that? Okay, now I'll end with this. So this is the status of the current situation. So I'm shooting this video on Tuesday evening. And as of right now, the House of Representatives, they voted on the budget resolution and it passed in the House of Representatives. The vote was 217 to 215. So again, this is a work in progress. I'll keep updated when the bill comes out. I'll tell you what's in there, what got left out. And just please be careful of who you listen to on social media for your own sake. Thanks again, and I wish you a very nice day. Take care.