The One Big Beautiful Bill: A Game-Changer for Federal Taxes and More!
A list of taxes that Trump's proposed "grand, majestic law" seeks to abolish
In the hot political scene, the One Big Beautiful Bill Act, fondly known as the "Big Beautiful Bill," is making waves in the Senate. This bill, championed by President Donald Trump, promises to fund his 2017 tax cuts, cut other taxes, and boost spending on border security and defense.
Republican fiscal hawks have raised concerns about the bill's potential impact on the deficit, forecasting a staggering $2.4 trillion increase as per the Congressional Budget estimate released Wednesday.
The Nitty-Gritty of the Bill: A Closer Look
Making Tax Cuts Permanent:
This extension of cuts since 2017 may not bring drastic changes for the average taxpayer, unless the cuts are not renewed after 2028, when Trump leaves office.
No Tax on Tips, Overtime, Gun Silencers, and Tanning Services:
- Trump promised on his campaign trail to "eliminate the SALT cap" imposed by the 2017 tax law. While the bill doesn't entirely eliminate it, it raises the cap significantly, offering some relief to high-tax states like New York and California.
- No more federal income taxes on tips or overtime for workers earning less than $160,000 annually. However, these tax breaks expire in 2028.
- A resounding win for the National Rifle Association, the bill removes the $200 excise tax on the purchase or transfer of silencers, eliminating registration since 1934.
- The legislation also repeals the 10% excise tax on indoor tanning services, a holdover from the Affordable Care Act since 2010.
Trump Savings Accounts:
The bill introduces "Trump savings accounts" where parents can open savings accounts for their newborn children, with a maximum annual contribution limit of $5,000 and an initial government deposit of $1,000 per newborn.
Cuts to Green Energy Incentives:
The bill aims to slash green energy tax credits and incentives that have been the hallmark of President Joe Biden's Inflation Reduction Act. This could mean a significant decrease in support for green energy investments.
A Mixed Bag for Education Programs:
While specifics are scarce, initial reports suggest the bill could slash $330 billion from student loan spending over the next 10 years. The bill also changes the Pell Grant program for low-income students, requiring more credits per semester.
-our website' John Parkinson, Allison Pecorin, Arthur Jones II, and Isabella Murray contributed to this report.
- In the political landscape, the debates around the One Big Beautiful Bill Act, also known as the "Big Beautiful Bill," have intensified, particularly regarding its potential long-term effects on the deficit.
- Beyond tax cuts, the bill includes an interesting provision for parents, enabling them to establish "Trump savings accounts" for their newborn children, with potential benefits and maximum contribution limits.
- In the world of business, the bill stands to impact industries such as tanning and firearms, with the removal of taxes on certain services and products, respectively. However, these tax breaks are set to expire in 2028.
- Given its implications for education, finance, and general news, the One Big Beautiful Bill Act raises questions about the future of student loan spending and Pell Grant programs, with initial reports hinting at possible cuts and changes.
