Rivian, Lucid to Benefit From Trump Tax Bill, BNP Paribas Says
The bill, which was passed by the US Senate and is expected to be passed by the House of Representatives on Thursday, would end the $7,500 electric vehicle consumer tax credit after Sept. 30. Getting rid of the tax credit is projected to lead to a drop in demand for electric vehicles later in the year, but not all automakers are expected to be impacted equally.
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Yahoo
21 minutes ago
- Yahoo
Child tax credit gets small boost in Trump's tax bill, but millions of families are left out
The popular child tax credit will receive a slight boost from President Trump's signature tax and spending bill — but there are caveats. Currently, taxpayers who make under $200,000 annually as a single filer, or $400,000 if filing jointly, can qualify for a partially refundable credit of up to $2,000 for each child they claim as a dependent who is under age 17 and a US citizen or qualifying noncitizen. The new legislation increases the credit to a maximum $2,200 per child. Without the bill, the maximum credit would have reverted to $1,000. But the increase, which amounts to a 10% bump, follows years of rising prices that have chipped away at the value of the original benefit. And many extremely low-income children — in addition to US citizen kids of undocumented parents — will be locked out of the payments altogether. 'If you're already receiving the full credit amount, then you will benefit from this,' Joe Hughes, a senior analyst at the Institute on Taxation and Economic Policy, told Yahoo Finance. 'If you're not, then you probably won't benefit.' Read more: Child tax credit: Everything you need to know By subscribing, you are agreeing to Yahoo's Terms and Privacy Policy To qualify for the refundable portion of the child tax credit, which is called the 'additional child tax credit' and can be worth up to $1,700, taxpayers must earn at least $2,500 in annual income. (A refundable tax credit can lower tax liability past zero, potentially generating a refund.) Families who make less than that receive no benefit, while many more children are in low-income households that earn just enough to receive part of the benefit but not enough to receive the full payment. Due to those income restrictions, an estimated 17 million children are unable to receive the full child tax credit, according to the Tax Policy Center, a left-leaning think tank. The average benefit for taxpayers with children who made between $10,000 and $20,000 in 2022, for example, was $800, according to the Congressional Research Service. That pay range includes people who worked full-time jobs at the federal minimum wage. Families earning between $200,000 and $500,000, meanwhile, saw an average benefit of $2,810. Households where both parents lack a Social Security number — undocumented immigrants, including those whose children have a Social Security number and are US citizens — will also be shut out under the new law. 'We are excluding some of the most vulnerable kids that have very, very high poverty rates," said Dolores Acevedo-Garcia, a professor at the Boston University School of Social Work. About 1.8 million children live in households where both parents are undocumented, she added. There was a point when the benefits were less restrictive and more broadly accessible. Through the 2021 pandemic-era American Rescue Plan, the child tax credit was temporarily expanded from $2,000 to up to $3,600 per child in what some scholars and advocates hailed as one of the country's greatest-ever antipoverty measures. Combined with stimulus payments, the tax credit hike helped slash child poverty rates by 46%, pushing them to their lowest level on record. When the child tax credit expansion lapsed at the end of 2021, those gains were reversed. At the time, the credit was fully refundable, meaning even the lowest-income families qualified. As for the new tax bill, 'basically what it's doing is giving wealthier families a small boost,' said Adam Ruben, director of Economic Security Project Action, a left-leaning advocacy group. 'But for lower-income and working-class families, they get nothing.' Emma Ockerman is a reporter covering the economy and labor for Yahoo Finance. You can reach her at Sign up for the Mind Your Money newsletter
Fox News
24 minutes ago
- Fox News
‘The Five': Victory stalled by a 'big, beautiful stunt'
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Yahoo
24 minutes ago
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Analysis-Trump extends his political power with 'big, beautiful' win in Congress
By Trevor Hunnicutt and Jeff Mason WASHINGTON (Reuters) -As U.S. President Donald Trump worked to pass his signature spending bill, he blended charm and threats, bestowed gifts and bellowed frustration to bend Congress to his will. In the end, after days of intense behind-the-scenes pressure from the White House, Congress proved no match for a president at the peak of his power. Trump secured the biggest legislative victory of his second term in office on Thursday when the House of Representatives passed his sweeping tax-cut and spending bill, sending it to the Republican president for his signature by his dictated deadline of Friday's Independence Day holiday. The measure will give Trump billions of dollars and new legal avenues to press forward with his domestic agenda, ramping up migrant deportations and cutting taxes while rolling back health benefits and food assistance. One-by-one, major U.S. institutions from the Supreme Court, law firms, universities, media outlets and beyond have given way for Trump to push the bounds of presidential authority in his first five months in office. With its narrow passage of Trump's self-styled "big, beautiful bill," Congress, too, delivered the president a victory that will further extend his power. "There's no question that it's a capstone to what has been a very strong last few weeks for President Trump,' said Lanhee Chen, a fellow at the Hoover Institution, a think tank, and a former adviser to Republicans Mitt Romney and Marco Rubio. In acceding to Trump's wishes, Republican lawmakers pushed past their non-partisan budget office and Senate parliamentarian, mega-donor Elon Musk, bond market fears about U.S. debt and their personal doubts about whether the bill's benefit cuts could shorten their constituents' lives or their own political futures. Nonpartisan forecasters say the legislation will add $3.4 trillion to the nation's $36.2 trillion in debt, a prediction many Republicans contend overlooks future economic growth from business tax cuts. The bill isn't popular with many Americans: 49% oppose the legislation, while only 29% favor it, according to recent polling by the nonpartisan Pew Research Center. Pew said majorities expressed concern that the legislation would raise the budget deficit and hurt lower-income people while benefiting the wealthy. The White House disputed the polling data, insisting that internal polls across the country had found great support for many specific provisions of the law. Republican voters do want Trump to rule with little interference from lawmakers. Some 64% of Republicans polled by Reuters/Ipsos in June agreed with a statement that the country needs a strong president who can rule without too much interference from Congress or the courts. Only 13% of Democrats agreed. "It's the rare piece of legislation that can both at the same time be a big victory for one side but also present some political traps for that same victorious side," Chen said. GIFTS, GOLF AND GOADING Trump spent recent days wooing small groups of Republican lawmakers from the Senate and House who stopped by the Oval Office or his Sterling, Virginia, golf course. He handed out branded merchandise and encouraged them not to give Democrats the satisfaction of handing Trump a major defeat, according to people familiar with the outreach. He vented frustration, privately and then publicly, at the idea that Republicans might break ranks. 'FOR REPUBLICANS, THIS SHOULD BE AN EASY YES VOTE,' Trump posted on Truth Social after midnight Thursday as the bill struggled to gain sufficient votes to clear a procedural hurdle. 'RIDICULOUS!!!' A senior White House official told reporters after the final vote on Thursday that Trump was deeply involved in the production of the legislation, going over it line-by-line with senior advisers including Treasury Secretary Scott Bessent and working through "endless" late-night phone calls with members of Congress. Trump started working the phones at 5:30 a.m. on Thursday in the run-up to the vote, leveraging relationships built during dinners and engagements at the White House and at his Florida estate in Palm Beach, the official said. Ultimately, only two House Republicans ended up joining Democrats to vote against the bill. Hyma Moore, a Democratic strategist, said Trump will pay little long-term political price for pushing an unpopular bill because he is a term-limited president. Republicans seeking future office may have to deal with the consequences, however. Deep cuts to Medicaid and food assistance along with growing U.S. government debt are certain to figure in the 2026 midterm elections, when Democrats hope to take advantage of the longstanding tendency of voters to hand the opposition party more control of Congress. Two Republicans, Representative Don Bacon of Nebraska and Senator Thom Tillis of North Carolina, have already announced their retirements in recent days after clashing with Trump, potentially giving Democrats an easier path to pick up those seats. "He's a lame duck, there's not much of a price he can pay at this point,' Moore said of Trump. 'Next step is more GOP (Republican) in-fighting as the primaries shape up.' While Republican lawmakers in tough districts fight to keep their jobs, the bill they just passed will empower Trump to govern as freely as ever.
