Donald Trump's Tax Bill: Who won and who lost

Time of India

6 hours ago

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Business investors and wealthy Americans are among the biggest winners in President Donald Trump 's 'Big, Beautiful' bill. Those hit the hardest by the sweeping package include elite universities, who face new levies, and immigrants Here's who won and who lost in the legislative centerpiece of the president's domestic agenda:Bill includes estimated $4.5T worth of tax cuts; estate tax exemption rises to $15M for individuals--$30B for married couples; 2017 Trump income tax cuts become permanent, favoring wealthyState and local tax deduction cap raised to $40K annually for five years, then reverts to $10K2017 law that allowed 20% pass-through income deduction for sole proprietorships, LLCs, partnerships permanently extended from 2026Carried interest tax break survives; interest expense deductions expanded for private equityUp to $10K a year in USmade car loan interest deductible through 2028, with income-based phase-outBonus depreciation for the cost of production upgrades and a R&D tax break made permanentIndustries win tax breaks and new requirements to open up more federal land for drilling; clean energy breaks phased outLarger standard deduction for seniors; tips and overtime pay exempted from income taxes. Provisions include limits to shrink cost and expire after 2028Max child tax credit rises by $200 starting 2025, permanently indexed to inflation; 'Trump accounts' for newborns seeded with $1,000 through 2028Large swaths of spectrum auctioned, benefiting the likes of Starlink as well as 5G and future 6G network developmentProposed tax hikes that would have hit big business largely rejected$150B boost to defence spending, funding new weapons systems and military contractsNearly $10B in funding for Moon, Mars missions, and ISS decommissioningCuts to Medicaid and food stamps; new work requirements for some Medicaid recipients and cost-sharing imposedClean energy industries hit; a tax credit for solar panels and wind systems is quickly phased out; efficiency and home installation credits eliminated by year-endOnly 90% of gambling losses deductible, possibly creating taxes on net lossesStates retain power to regulate AI, a setback for large tech firms and investors.1% tax on remittances; some lose access to health coverage tax creditsEndowment income tax climbs to 8% for top private colleges with large funds$7,500 consumer tax credit for buying EVs eliminated, hitting the likes of Tesla and GM