Trump announces tax cuts on tips, overtime, car loans, domestic manufacturing

US President Donald Trump, while addressing the joint session of the US Congress on Wednesday, announced a slew of tax cuts ranging from tips, overtime, and social security benefits to interest payments on car loans and domestic manufacturing.

“We are seeking permanent income tax cuts all across the board and to get urgently needed relief to Americans especially hit hard by inflation. I am calling for no tax on tips, no tax on overtime, and no tax on social security benefits,” President Trump said while addressing the joint session of Congress.

“I also want to make interest payments on car loans tax deductible but only if the car is made in America,” Trump said.

Speaking about the growth in the auto industry Trump said that the auto industry is going to witness tremendous growth.

“And by the way, we are going to have growth in the auto industry like nobody has ever seen; plants are opening up all over the place, deals are being made, and that is a combination of election wins and tariffs,” Trump said.

Trump also announced 100% tax cut for domestic manufacturing, which will be implemented retrospectively from January 20, 2025.

“In addition, as part of our tax cuts, we want to cut taxes on domestic production and all manufacturing, and just as we did before, we will provide 100% expensing; it will be retroactive to January 20, 2025, and it was one of the main reasons why our tax cuts were so successful in our first term, giving us the most successful economy in the history of our country,” Trump said.

Trump added that the reciprocal tariffs will kick in from April 2.