Latest news with #BigBeautifulBillAct
UPI
2 days ago
- Business
- UPI
New $250 visa fee goes into effect for travelers, foreign workers
Travelers wait to check in at Newark Liberty International Airport on in May in Newark, N.J. The Big Beautiful Bill Act created a $250 "visa integrity fee" for nonimmigrant visas, which could impact tourism. File photo by John Angelillo/UPI | License Photo July 18 (UPI) -- Many visitors to the United States will soon have to pay a $250 "visa integrity fee" to enter the country. The fee was in the One Big Beautiful Bill Act and applies to people from countries who need a nonimmigrant visa to enter. The fee will be added to any other visa application fees. There are few details, which creates "significant challenges and unanswered questions regarding implementation," a spokesperson from the U.S. Travel Association told CNBC Travel. The new law includes fee hikes for those using the Electronic System for Travel Authorization, or ESTA, and new charges for migrants arrested at the border. It creates a $13 ESTA fee, and goes up to $5,000 for the arrests of undocumented people. The visa integrity fee is set at $250 from Oct. 1, 2024, to Sept. 30, 2025, but after that, the Secretary of Homeland Security, Kristi Noem, is free to raise the fee. The applicant will pay the fee when the visa is issued. If the visa is denied, the applicant doesn't have to pay. Steven A. Brown, a partner at immigration law firm Reddy Neumann Brown in Houston, said in a post on his firm's website that it significantly raises prices for those coming into the United states to work. "For example, an H-1B worker already paying a $205 application fee may now expect to pay a total of $455 once this fee is in place," he said. There is also an I-94 form fee that the bill raised from $6 to $24. He added that the law allows the government to give refunds of the visa integrity fee if the person follows all provisions of the visa. But it is unclear how, when and who decides that the refund will be issued. "Until those procedures are announced, employers and foreign nationals should treat the $250 Visa Integrity Fee as a non-refundable upfront cost and plan accordingly," Brown said. Critics say the effect on tourism and workers coming to the United States could be heavy. "Attaching an additional $250 fee has the very real potential to significantly reduce the number of people that can afford to do that," Jorge Loweree, managing director of programs and strategy at the American Immigration Council, told USA Today. "There are hundreds of thousands of people who receive visas and permission from the Department of State to come to the U.S. every single month temporarily." Tourism has already dipped this year, and travel experts call the fee a further detriment. "Raising fees on lawful international visitors amounts to a self-imposed tariff on one of our nation's largest exports: international travel spending," Geoff Freeman, president and CEO of the U.S. Travel Association, told Yahoo. "These fees are not reinvested in improving the travel experience and do nothing but discourage visitation at a time when foreign travelers are already concerned about the welcome experience and high prices."
Forbes
3 days ago
- Business
- Forbes
One Big Tax Break: The Top 5 Business Cuts In The Big Beautiful Bill
WASHINGTON, DC - JULY 04: U.S. President Donald Trump, joined by Republican lawmakers, signs the ... More One, Big Beautiful Bill Act into law on the South Lawn of the White House in Washington, DC. (Photo by) On July 4, 2025, President Donald Trump signed into law what he has called the biggest tax cut in U.S. history—the 'One Big Beautiful Bill Act' (OBBBA). The act is poised to serve as a comprehensive effort to stimulate economic growth, minimize regulatory burdens, and foster greater benefits for entrepreneurs. The Bill introduces a range of tax changes benefiting both individuals and business owners. While the legislation is broad in scope, and extends beyond tax matters, one of its key features is the slate of tax cuts targeted at American businesses, particularly those in the small and growing category. These elements are designed to reduce tax liabilities and encourage capital investment for business owners navigating a challenging post-pandemic economy. Let's take a closer look at the top five business tax cuts in the OBBBA and what they could mean for entrepreneurs in 2025 and beyond. Permanent Extension of the Qualified Business Income Deduction The Act makes a major, permanent change to the tax code by securing the Section 199A pass-through deduction—commonly known as the Qualified Business Income (QBI) deduction—as a permanent feature of U.S. tax law. Originally introduced under the Tax Cuts and Jobs Act (TCJA) of 2017 during President Trump's first term, the QBI deduction allows eligible owners of pass-through entities—such as sole proprietorships, partnerships, S corporations, and certain trusts and estates—to deduct up to 20% of their qualified business income from taxable income. The deduction was a significant tax benefit designed to level the playing field between pass-through businesses and C corporations, which had received a substantial corporate tax rate cut under the same legislation. Under the original TCJA, however, the QBI deduction was scheduled to sunset at the end of 2025, creating uncertainty for millions of small business owners and entrepreneurs who relied on the deduction to reduce their effective tax rate. The expiration would have effectively raised taxes on pass-through businesses, many of which are the backbone of the American economy. By making the QBI deduction permanent, the OBBBA eliminates that looming uncertainty and ensures long-term tax stability for a wide range of businesses. In addition to making the deduction permanent, the OBBBA also raises the income thresholds at which the deduction begins to phase out. Joint filers with taxable income up to $494,600 are now eligible to claim the full deduction, an increase of more than $10,000 over previous limits. This change expands access to higher-earning business owners who were previously limited or excluded from the deduction. Notably, these expanded thresholds will be indexed to inflation beginning in 2026, helping the deduction maintain its value and reach over time. The Act also introduces a minimum deduction safeguard for the smallest businesses. Under the new provision, businesses with at least $1,000 in qualified business income from an active trade or business are guaranteed a minimum deduction of $400, ensuring that even the smallest entrepreneurs benefit. Like the income thresholds, this minimum deduction will also be adjusted for inflation starting in 2026, providing lasting relief to microbusinesses and sole proprietors. Together, these updates to the QBI deduction reflect the OBBBA's broader goal of supporting small businesses, reducing tax burdens, and encouraging long-term investment in the U.S. economy. By removing the expiration date and enhancing accessibility, the Act strengthens a vital tool for American business owners and brings a new level of predictability to tax planning for years to come. Increases Research and Development Deductions The OBBBA introduces a significant change to how businesses handle domestic research and development (R&D) expenses by permanently restoring immediate expensing. This means that companies can now deduct the full cost of their qualified R&D expenditures in the year those expenses are incurred, rather than amortizing them over several years—a requirement that had been in place since 2022 under the TCJA. For small businesses—defined as those with average annual gross receipts of $31 million or less—the law goes a step further. These businesses are allowed to retroactively apply immediate expensing for domestic R&D costs incurred after December 31, 2021, offering a valuable opportunity to amend past returns and recover tax benefits that were previously deferred under the amortization rules. For larger businesses, or those with gross receipts above the $31 million threshold, the legislation allows for a transition period. Domestic R&D expenses incurred between December 31, 2021, and January 1, 2025, that were previously amortized can now be accelerated and deducted over a shortened period of one or two years, depending on the company's choice or eligibility criteria. This acceleration provides meaningful near-term tax relief while phasing in the return to full expensing. Together, these changes are aimed at incentivizing innovation, easing cash flow constraints, and reversing the chilling effect the TCJA's R&D amortization requirement had on business investment in domestic research. The provision is especially beneficial for startups and small tech-driven enterprises, which often rely on R&D investment but lack the capital to wait years for tax benefits to materialize. Increases Business Interest Deductions The new legislation permanently reinstates the EBITDA-based limitation on business interest deductions. EBITDA stands for earnings before interest, taxes, depreciation, and amortization. In 2017, TCJA introduced a limit on business interest expense deductions to 30% of adjusted taxable income (ATI). Initially, from 2018 to 2021, ATI was calculated using an EBITDA-based approach. However, for tax years starting after December 31, 2021, the calculation shifted to an EBIT-based approach (earnings before interest and taxes), which excludes depreciation and amortization. This change generally resulted in stricter limitations and increased tax liability for businesses, particularly capital-intensive companies. In short, by permanently restoring the EBITDA-based limitation, the OBBBA provides many business owners with a greater ability to deduct business interest expenses. This is because the EBITDA-based ATI calculation typically yields a higher ATI amount, enabling a larger interest deduction. This will create some relief for capital-intensive businesses that invest a significant amount into long-lived assets like equipment and machinery. The previous EBIT-based limitation had a negative impact on capital-intensive businesses due to their significant depreciation and amortization expenses. The shift back to EBITDA may alleviate some of the tax burden on these companies in industries like farming and manufacturing. Restores 100 Percent Bonus Depreciation The OBBBA permanently restores 100% bonus depreciation for short-lived investments. Purchases of business assets, such as equipment and vehicles, are now 100% deductible in the year they are purchased and/or put into service for the business. Congress first introduced 100% bonus depreciation as part of the Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010. This allowed for a temporary 100% bonus depreciation rate from September 2010 through the end of 2011. More recently, the TCJA of 2017 allowed businesses to deduct 100% of the cost of eligible property placed in service after September 27, 2017, and before January 1, 2023. The TCJA required bonus depreciation began phasing out in 2023, resulting in a reduction in the percentage deductible, decreasing to 80% for 2023, 60% for 2024, and now 40% for 2025. With the BBB, the deduction will be restored to 100% for 2025 and remain at 100% permanently. Plus, for vehicles purchased in your personal name, the law now provides a deduction for auto loan interest of up to $10,000 for purchases of new vehicles that are assembled in the United States. If the vehicle is purchased personally but used in the business, you can take advantage of the deduction for bonus depreciation and the auto loan interest deduction. Provides 100 percent expensing of new business buildings The Act includes a targeted incentive aimed at stimulating domestic industrial investment through a special provision for structures classified as qualified production property (QPP). These are buildings and facilities that are primarily used in the manufacturing, production, or refining of tangible personal property within the United States. The goal is to encourage companies to expand or modernize their physical infrastructure to support domestic industrial activity and strengthen U.S. supply chains. To qualify for the 100% immediate expensing benefit, certain timing and use conditions must be met. Construction of the QPP structures must commence after January 19, 2025, and before January 1, 2029, offering a defined window during which businesses must begin their projects to be eligible. Additionally, the property must be placed in service no later than January 1, 2031, ensuring that the economic benefits are realized within a reasonable timeframe. However, this tax benefit is not universally available to all types of property within a facility. The provision explicitly excludes parts of a structure that are used for non-production activities, such as office space, administrative functions, employee cafeterias, parking garages, and other ancillary or support areas. Only the portions of the structure that are directly involved in qualifying industrial processes—like assembly lines, fabrication areas, or refining equipment spaces—are eligible for the accelerated deduction. This distinction is critical, as it ensures the tax benefit is narrowly tailored to incentivize core production investments rather than general corporate expansion. By doing so, the OBBBA aims to maximize the economic impact of the expensing provision, driving capital investment directly into the sectors and activities that are central to domestic manufacturing competitiveness and economic resilience. The One Big Beautiful Bill Act marks a sweeping shift in U.S. tax policy, particularly for the business community. By making key provisions permanent—like the Qualified Business Income deduction, 100% bonus depreciation, and EBITDA-based interest deductions—while expanding incentives for research, innovation, and industrial infrastructure, the Act seeks to reduce financial friction for businesses of all sizes. It delivers targeted relief to small businesses and capital-intensive industries alike, while sending a clear message: the U.S. is doubling down on domestic growth, productivity, and entrepreneurship. As business owners look ahead, these tax cuts are poised to not only lower costs but also fuel reinvestment, expansion, and innovation in an economy still reshaping itself in the post-pandemic years ahead. Whether you're a startup founder, manufacturer, or seasoned entrepreneur, the OBBBA's top five tax breaks represent new opportunities—and new responsibilities—to plan smart and grow strong.
Forbes
3 days ago
- Business
- Forbes
No Tax On Overtime Explained
WASHINGTON, DC - JULY 04: U.S. President Donald Trump, joined by Republican lawmakers, signs the ... More One, Big Beautiful Bill Act into law during an Independence Day military family picnic on the South Lawn of the White House on July 04, 2025 in Washington, DC. After weeks of negotiations with Republican holdouts Congress passed the One, Big Beautiful Bill Act into law, President Trump's signature tax and spending bill. The bill makes permanent President Donald Trump's 2017 tax cuts, increase spending on defense and immigration enforcement and temporarily cut taxes on tips, while cutting funding for Medicaid, food assistance and other social safety net programs. (Photo by) Getty Images Should working longer hours mean keeping more of your paycheck? The Trump administration and authors of the One Big Beautiful Bill Act (OBBBA) seemed to answer in the affirmative. Starting in 2025, a large chunk of overtime pay will not be subject to federal income tax. It's a populist-sounding provision with bipartisan support or, put differently, an easy applause line in a hard economy. But, if you peel back the campaign slogans, the policy raises some deeper questions about fairness, labor markets, and whether the tax code should play favorites with how we work. To be clear, the 'no tax on overtime' policy isn't really a blanket exemption on overtime pay—it's a deduction, capped at $12,500 for individuals and $25,000 for married couples filing jointly. It applies only to qualified overtime compensation under the Fair Labor Standards Act (FLSA), meaning the time-and-a-half pay earned by non-exempt workers—generally hourly employees making less than $35,568 per year. It isn't the full overtime amount that is deductible, it's the extra compensation over regular wages. So, if you make $20 an hour and $30 in overtime, only that $10-per-hour difference counts. The deduction phases out incrementally above $150,000 in individual income and the entire provision sunsets in 2028—though it has a good chance of becoming politically permanent. Despite the campaign trail framing, this isn't a windfall for most workers. The biggest winners are going to be middle-income workers who work significant overtime and still owe federal income taxes after the standard deduction and other credits. Many low-wage workers—especially those with dependents—already have little to no federal income tax liability owing to the expanded standard deduction and child tax credit. For them then, this deduction is worthless. But if you imagine a single factory worker putting in 50-hour weeks at $22 per hour, the difference could be hundreds of dollars. In practice, this is a modest tax break for a very specific demographic of working-class voter. Assuming that factory worker regularly worked ten hours in overtime, they'd be able to deduct about $5,700 from taxable income at the end of the year. That isn't a credit, mind you, it is just what will be deducted from their total income of about $62,900. If you crunch the numbers, the provision will save that factory worker about $900 per year in tax liability. On paper, and as a political plank, this policy rewards hard work. In practice, it is a subsidy for a particular kind of work: hourly, eligible-for-overtime, and just tax-liable enough. In other words, a tax subsidy for financial precarity. Here is where things start to get distortive. Two workers each earning the same $62,900 per year could face very different tax bills depending on how their income is structured—say, one salaried and the other hourly with overtime. That violates the concept of horizontal equity, the idea that similarly situated people should be taxed similarly. This deduction suggests we want to tax based on effort, not earnings. It also sets up some predictable behavioral incentives on the part of employers. They are already playing cat-and-mouse with overtime classification rules—now they have a real reason to game it. Lower base wages, more overtime hours, and absolutely no additional cost to the firm. Workers' incentives will be aligned, and they may find themselves chasing longer shifts to qualify for the deduction. Economically, subsidizing overtime doesn't create jobs—it actually destroys them on paper. When existing workers are pressed to work longer hours, employers have less need to hire on additional staff. A 50-hour week for one employee can be replaced by tacking on an additional ten hours across five separate workers. The overtime deduction thus may boost take-home pay for some, but it does so by encouraging a labor distribution that concentrates hours in the hands of fewer people. In strict policy terms, this is a stealth anti-job creation measure. Policy Tradeoffs and the Politics That Drive Them At $89 billion over ten years, the 'no tax on overtime' provision is more of a rounding error as against the $3 trillion OBBBA cost . And yet, each rounding error comes at the expense of something else. The money spent on the OBBBA could've expanded the Earned Income Tax Credit, or funded a refundable childcare benefit. It could have boosted wages through direct support. Instead, we've chosen to reward more hours, not better jobs. And, contrary to campaign spin and political bluster, this won't expand the labor market—economically, it's closer to a job killer. The politics, however, are easy. Subsidizing 'hard work' polls well and cuts cleanly across partisan lines. It plays to a cultural narrative, a Horatio Alger story, that values hustle over balance. Republicans can call it a reward for effort, and Democrats can back it for working-class symbolism, if not effects. No one is eager to point out that the federal government just made overtime the most tax-advantaged income in America.
Newsweek
3 days ago
- Business
- Newsweek
Republicans Must Stop Blaming the Deep State and Start Delivering Results
Advocates for ideas and draws conclusions based on the interpretation of facts and data. Newsweek AI is in beta. Translations may contain inaccuracies—please refer to the original content. I don't want to hear another excuse. Not another, "The deep state's holding us back." Not another, "We can't move too fast." Not another, "Wait until after the midterms." Why? Because Republicans literally control Washington. Every lever of power that matters—from the White House to the House of Representatives to the Senate—is in our hands. The executive pen. The committee gavels. The agenda. The messaging. All of it. So if we don't use it now, we have nobody to blame but ourselves. Treasury Secretary Scott Bessent, Interior Secretary Doug Burgum, House Speaker Mike Johnson, President Donald Trump pose after Trump signed the Big Beautiful Bill Act at the White House in Washington, D.C., on July 4, 2025.... Treasury Secretary Scott Bessent, Interior Secretary Doug Burgum, House Speaker Mike Johnson, President Donald Trump pose after Trump signed the Big Beautiful Bill Act at the White House in Washington, D.C., on July 4, 2025. More BRENDAN SMIALOWSKI/AFP via Getty Images Let me be clear: I get the frustration with the so-called deep state. I've talked about it, written about it, and called it out. But at some point, it becomes a crutch—a convenient way to explain away slow movement, weak messaging, or flat-out cowardice. It's time we stop running scared. Because this is the moment the Republican Party has been waiting for. President Donald Trump is back. Conservatives hold the House and Senate. We have a rare, historic opportunity to go big—and go fast. The window is tight. Midterms are around the corner. Every day we waste is one we don't get back. We saw what happens when we blow this kind of moment. I was 12 when Republicans had full control in 2017 and 2018. What did we do with it? Sure, we cut taxes (and that was a big win), but we also watched Paul Ryan's House fumble a repeal of Obamacare after campaigning on it for seven straight years. We watched Senate Republicans fold under pressure and waste time trying to play nice with Democrats. We watched momentum die. We don't have the luxury of learning that lesson twice. This time around, we better work like we've only got two years—because we might. The media is already gearing up their midterm hysteria. The Democrats are raising millions to claw their way back. And Republicans? We should be sprinting through our conservative checklist: —Lock in immigration reform that ends catch-and-release and finishes the wall. —Drastically and permanently cut waste, fraud, and abuse, and bring down our suffocating debt. —Slash regulations that are strangling small businesses. —Rein in the weaponized federal agencies. —Pass school choice legislation that empowers parents, not bureaucrats. —Defund DEI and climate cult nonsense. —Make work cool again by rewarding productivity—not freeloading. —Finally bring the administrative state to heel by firing the dead weight and putting real patriots in charge. The passage of the Big Beautiful Bill was a major step in the right direction. No more taxes on tips. No more taxes on overtime. Finally, a Republican bill that rewards hard work and defends working-class families. But let's be very clear: that can't be the end of the story—it has to be the start. The BBB should be the launching pad for a legislative sprint, not a victory lap we take for the next six months. If any Republican can't get excited about that list—or worse, can't fight for it—they need to get out of the way. We don't need speeches. We need spine. We don't need meetings. We need motion. And we definitely don't need more blame games. You know what wins elections? Results. You know what keeps Gen Z engaged and proud to vote conservative? Momentum. I talk to young people every day who are sick of politics-as-usual and fired up for a bold, unapologetic Republican Party. But if we go soft now—if we let fear or laziness sink in—we'll lose them. Maybe forever. So no more feet dragging. No more "wait and see." No more excuses. Republicans control Washington. Now let's control the narrative—and the future. Let's pass everything we can between now and the midterms. If we get lucky and keep the majority in 2026, that's bonus time. But don't count on it. Plan like this is all we've got—and leave it all on the field. Because the country is watching. And so is history. Brilyn Hollyhand is a 19-year-old political commentator, bestselling author of One Generation Away: Why Now is the Time to Restore American Freedom, and host of The Brilyn Hollyhand Show. For more of his hot takes you can follow him on socials @BrilynHollyhand or visit The views expressed in this article are the writer's own.
American Press
4 days ago
- Politics
- American Press
Jim Beam column:Independent thinkers are rare
U.S. Rep. Don Bacon, a Republican from Nebraska, is leaving Congress like others who are frustrated about the failure of members of Congress to compromise for the good of the country.(Photo courtesy of Nebraska Public Media). Moderates are leaving Congress as fast as chickens would run from an open coop. U.S. Rep. Don Bacon, a Nebraska Republican who said his fifth term would be his last, is among the latest. The Advocate last week ran two columns talking about moderates leaving Congress. Kathleen Parker wrote about U.S. Sen. Thom Tillis, a Republican from North Carolina, announcing he wouldn't seek re-election after President Donald Trump threatened to support primary challengers to any Republican who dared oppose his Big Beautiful Bill Act. Parker said a lengthening line of dropouts that GOP members like to call RINOs — Republicans in Name Only — have left office since Trump first became president. Steve Roberts in his column said, 'While Trump had promised to protect Medicaid funding, Tillis argued that his bill would eventually deprive almost 12 million Americans of health care coverage, including 663,000 in Tillis' home state. Tillis joined all 47 Democrats and Republican Sens. Rand Paul and Susan Collins in voting against Trump's BBB Act. Vice President JD Vance cast a tie-breaking vote to pass the bill. The Nebraska Examiner quoted Bacon when he announced he was leaving Congress who said, 'I hope to be remembered for … I'm a Christian, first … American, second … somewhere down here being a Republican. It's about doing the right thing .. I'm a traditional conservative at heart.' Like Louisiana's Republican U.S. Sen. Bill Cassidy of Baton Rouge, Bacon cast a pivotal vote for President Joe Biden's bipartisan infrastructure bill that put him at odds with Trump. After the vote, Trump criticized Bacon during a May 2022 visit to Nebraska, calling him 'bad news.' His political team worked for years to recruit potential GOP primary challengers. The Examiner said, 'But Bacon kept winning and continued to publicly spar with Trump…' Bacon did vote for the BBB Act and was criticized for it by some national and Nebraska public officials. NBC News in a story about Bacon's retirement from Congress said he spent 30 years in the Air Force and specialized in intelligence matters. He is a retired brigadier general who did four tours of duty in Iraq and also spent time in Afghanistan. The NBC report said Bacon is one of the few sitting Republicans willing to publicly criticize Trump who has a reputation for retaliating against his enemies and ending their political careers. Bacon insisted that neither the public feuds with Trump nor the violent threats he and his wife have faced had any impact on his decision to leave Congress. He said he didn't have the 'fire in my belly' for another congressional run. The news about Bacon caught my attention because, like me, he is a strong defender of Ukraine in its war with Russia. He has a photograph on the wall of his meeting with Ukrainian President Volodymyr Zelenskyy. And he has consistently been critical of Trump's handling of the Russian invasion of Ukraine and Trump's 'appeasement' of Russian President Vladimir Putin. Defense Secretary Pete Hegseth reportedly ordered a pause in sending a shipment of missiles and ammunition to Ukraine and Bacon said whoever ordered the weapons pause should be fired. Bacon said, 'If Ukraine falls, the world's a more dangerous place. I really don't understand why President Trump doesn't see that. And if Ukraine goes down, Moldova will definitely fall. I think Georgia is in trouble.' Although he said he was embarrassed to say it, Bacon said, 'President Trump has done worse than Biden (on Ukraine). I don't like it. He seems to have a blind spot with Putin. I don't know what purpose it serves to withhold weapons to Ukraine and not see that Putin is the invader.' Trump has since resumed weapons for Ukraine, but the delay has been costly in terms of lives lost and damage in Ukraine. Bacon added, 'I do believe that if I was president, I'd be trying to provide Ukraine with every weapon they needed to convince Putin he has no chance to win.' He added that he wished GOP Vice President JD Vance 'saw the Russian threat a little better.' Tillis confirmed where this country is at the moment when he said, 'In Washington over the last few years, it's become increasingly evident that leaders who are willing to embrace bipartisanship, compromise and demonstrate independent thinking are becoming an endangered species.' Jim Beam, the retired editor of the American Press, has covered people and politics for more than six decades. Contact him at 337-515-8871 or
