President Donald Trump has wasted no time making waves in his first week back in office. After taking the oath on Monday, the Republican leader hit the ground running, revisiting campaign promises and reversing numerous policies set by his predecessor, Joe Biden.
His agenda is ambitious, from addressing disaster relief to proposing tax reforms that could reshape the lives of service workers.
On Friday, Trump visited disaster-stricken areas in North Carolina and California, offering reassurances of federal aid to communities recovering from hurricanes and wildfires. These visits come despite his recent suggestion to shut down the Federal Emergency Management Agency (FEMA), an idea that stirred controversy but has not been finalized.
Trump’s whirlwind first week culminated with a stop in Las Vegas on Saturday, where he discussed a key 2024 campaign promise: eliminating taxes on tips and overtime pay.
First proposed in June, this policy aims to relieve financial pressures on service workers, a significant demographic in Nevada, where the tip-heavy hospitality sector accounts for over 20% of jobs.
“Do you remember that little statement about tips?” Trump asked during his inauguration speech, crediting the idea for helping him secure Nevada in the election.
Michael McDonald, chairman of Nevada’s Republican Party, welcomed the proposal, noting its appeal to a population burdened by rising costs of essentials like food and gas. “No tax on tips, no tax on Social Security—that’s something that really resonates with our community,” McDonald said.
In addition to his plans for tips and overtime, Trump has pledged to extend his 2017 tax cuts and eliminate taxes on Social Security benefits. While these proposals have excited many voters, they also come with a hefty price tag.
The nonpartisan Committee for a Responsible Federal Budget estimates that Trump’s proposed tax cuts could add $7.5 trillion to the national debt over the next decade.
To offset these costs, Trump has floated the idea of using revenue from higher tariffs on imported goods. However, this unprecedented plan faces skepticism from Republican fiscal conservatives, who question the reliability of tariff revenue and its ability to fund such sweeping tax cuts.
Even with Republican control of Congress, Trump’s aggressive tax agenda could face obstacles. At a recent closed-door meeting, some GOP lawmakers expressed concerns about the long-term implications of extending the 2017 tax cuts, which could cost $4 trillion over the next decade.
With the U.S. national debt already at $36 trillion and growing by $2 trillion annually, maintaining fiscal responsibility will be a significant challenge.