Trump, GOP Face Tax Reform Challenges

President Trump and Congressional Republicans are facing challenges in reforming the federal income tax system due to significant disagreements and a narrow majority in Congress. Proposals include extending the Tax Cuts and Jobs Act (TCJA) and eliminating taxes on tips, but these could add significant costs to the budget. In a surprising shift, the Trump administration is considering raising taxes on the wealthiest Americans to offset these costs, potentially raising the top tax rate from 37% to 39.6%. This move aims to balance campaign promises with fiscal responsibility, while also addressing criticisms from Democrats about tax favoritism towards the wealthy. However, these discussions are still preliminary and face political hurdles, especially concerning the need for congressional approval. The administration seeks to maintain support from working-class voters while managing the federal deficit without cutting popular entitlement programs.