Divisions Emerge Over Trump's Tax Proposals in Congress

President Donald Trump has proposed sweeping tax policy changes during his second term, including eliminating federal income taxes in favor of tariffs and exempting tips and overtime from taxation. However, experts and lawmakers from both parties have expressed skepticism, noting that tariffs could not generate nearly enough revenue to replace income taxes, and that the costs of the tip and overtime exemptions are proving controversial in Congress. Republican leaders are working to extend expiring tax cuts and push through additional reductions, but to fund these cuts, some proposals would reduce or eliminate popular tax breaks and potentially cut spending on government programs like Medicaid. Internal divisions over these policies are apparent, with some Republicans urging the White House to drop the overtime exemption due to cost concerns. Meanwhile, the legislative process remains uncertain, as both chambers of Congress must reconcile their differences before any major tax bill can advance. Overall, while tax reform remains a central promise of Trump's agenda, significant obstacles and opposition persist.