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Yahoo
20 hours ago
- Business
- Yahoo
Here's exactly how much you'll save on your 2026 taxes, by income bracket: Trump's One Big Beautiful Bill benefits
Now that President Donald Trump's so-called 'big, beautiful bill' is the law, you're probably wondering how much you'll save on your taxes when you file next year. The Tax Policy Center (TPC), a nonpartisan think tank staffed by the Urban Institute and the Brookings Institution, has crunched the numbers. Here's a rundown. Southwest Airlines' open seating is ending: Here's what the new 8-group boarding process will look like Here's exactly how much you'll save on your 2026 taxes, by income bracket: Trump's One Big Beautiful Bill benefits The Trump administration is pushing to open new coal mines that will likely never turn a profit What does the new tax bill do? Trump's One Big Beautiful Bill Act (OBBBA) offers Americans a number of tax benefits by extending the 2017 Tax Cuts and Jobs Act (TCJA), making many of the changes permanent, plus adding some new short- and long-term tax rules. Those changes include certain business and international tax rules, and revenue-raising provisions—including the repeal of various energy tax incentives, according to the TPC. What is the average 2026 tax savings from Trump's 'Big, Beautiful Bill'? An analysis from the TPC shows the new law would reduce taxes for Americans by about $2,900 on average in 2026, with some 85% of households receiving a tax cut in 2026. That figure will drop to just 70% in 2030, after some provisions are phased out. But notably, almost 60% of the tax benefits would go to those in the top quintile, or one-fifth of earners, with incomes of $217,000 or more. It's fair to say that higher-income Americans are more likely to see larger tax benefits than lower-income Americans. Overall, about 4% of households would see their taxes go up in 2026; that percentage would increase to about 10% in 2030. How much will each income bracket save on their 2026 taxes? According to the data compiled by the Tax Policy Center, here's how much the average 2026 tax savings will be for each of the five quintiles of income, as well as the top 1% and 0.1%: Bottom 20% ($0 to $34,600 income range):Second quintile ($34,601 to $66,800):Third quintile ($66,801 to $119,200):Fourth quintile ($119,201 to $217,100):Top 20% ($217,101 and higher):Top 1% ($1,149,000 and higher):Top 0.1% ($5,184,900 and higher):What are some specific tax benefits included in the new bill? There are a number of new tax write-offs and credits, including: the 'No Tax on Tips' provision (which allows eligible tipped workers to deduct a portion of their income from tips on their federal income taxes), a car loan deduction, a deduction for charitable donations, and a child credit. This post originally appeared at to get the Fast Company newsletter: Error while retrieving data Sign in to access your portfolio Error while retrieving data Error while retrieving data Error while retrieving data Error while retrieving data
Fast Company
2 days ago
- Business
- Fast Company
Here's exactly how much you'll save on your 2026 taxes, by income bracket: Trump Big Beautiful Bill benefits
Now that President Donald Trump's so-called Big Beautiful Bill is the law, you're probably wondering how much you'll save on your taxes when you file next year. The Tax Policy Center (TPC), a nonpartisan think tank staffed by the Urban Institute and the Brookings Institution, has crunched the numbers. Here's a rundown. What does the new tax bill do? Trump's One Big Beautiful Bill Act (OBBBA), offers Americans a number of tax benefits by extending the 2017 Tax Cuts and Jobs Act (TCJA), making many of the changes permanent, plus adding some new short- and long-term tax rules. Those changes include certain business and international tax rules, and revenue raising provisions—including the repeal of various energy tax incentives, according to the TPC. What is the average 2026 tax savings from Trump's Big Beautiful Bill? An analysis from the Tax Policy Center shows the new law would reduce taxes for Americans by about $2,900 on average in 2026, with some 85% of households receiving a tax cut in 2026. That figure will drop to just 70% in 2030, after some provisions are phased out. But notably, almost 60% of the tax benefits would go to those in the top quintile, or one-fifth of earners, with incomes of $217,000 or more. It's fair to say higher-income Americans are more likely to see larger tax benefits than lower-income taxpayers. Overall, about 4% of households would see their taxes go up in 2026; that percentage would increase to about 10% in 2030. How much will each income bracket save on their 2026 taxes? According to the data compiled by the Tax Policy Center, here's how much the average 2026 tax savings will be for each of the five quintiles of income, as well as the top 1% and 0.1%: Bottom 20% ($0-$34,600 income range): $150 Second quintile ($34,601-$66,800): $750 Third quintile ($66,801-$119,200): $1,780 Fourth quintile ($119,201-$217,100): $3,460 Top 20% ($217,101 and above): $12,540 Top 1% ($1,149,000 and above): $75,410 Top 0.1% ($5,184,900 and above): $286,440 What are some specific tax benefits included in the new bill? There are a number of new tax write-offs and credits, including: the ' No Tax on Tips ' provision (which allows eligible tipped workers to deduct a portion of their income from tips on their federal income taxes), a car loan deduction, one for charitable donations, and a child credit.
The Hill
2 days ago
- Business
- The Hill
Not even Trump can fire Jerome Powell
It's just six months into President Trump's second term, and speculation is swirling about the fate of his Federal Reserve chairman, Jerome Powell. Headlines pulse with the drama of his impending firing, and pundits are debating the consequences — as if such an act were merely a question of presidential will. Yet beneath the spectacle lies a profound misunderstanding, not just of law but of the very architecture of American governance. The truth is simple: the president cannot legally remove the Fed chair at will. This is not political theater — it is constitutional guardrail. As the Brookings Institution artfully explains, the Federal Reserve's independence is no accident or mere convention. It is the deliberate product of decades of legal and institutional design intended to shield monetary policy from transient political pressures. Jerome Powell's term as chairman is set by a statute duly enacted by Congress and signed by a president. He serves a fixed four-year appointment as chair and a 14-year term on the Board of Governors — tenures designed to transcend electoral cycles and partisan shifts. The president's authority does not extend to firing him without cause — and 'cause,' in this context, means serious misconduct, not simply disagreement over interest rates or inflation management. The media frenzy around Trump's desire to oust Powell plays to a broader narrative about executive power run amok. Yet this impossible scenario risks distracting us from more urgent economic realities and undermining the fragile trust in our financial institutions. As key Republicans are currently attempting to point out to the president, this risks normalizing the idea that the Fed chair is a political appointee, subject to the caprices of whoever occupies the White House. This threatens the very confidence that markets and the public place in the central bank's impartiality and stability. It would be nothing less than a body-blow to American democracy. Why then, does this myth persist? Part of the answer lies in the deeply performative nature of modern politics and media in the Trump era. The president's public disparagement of Powell and the Fed feeds into a spectacle that blurs the line between political rhetoric and constitutional fact. For Trump's supporters, talk of firing Powell signals a willingness to challenge entrenched powers. For opponents, it offers a rallying cry to defend democratic norms. But for the country at large, it can be confusing, sowing doubt where clarity is sorely needed. This moment calls for a sober reassessment of how we talk about the Federal Reserve. The real threats to its independence are subtle and systemic: political pressure applied through legislation, undermining funding, or eroding norms that protect its autonomy. These dangers do not announce themselves with fireworks; they creep in quietly and cumulatively. The distraction of an illegal firing narrative is a convenient smokescreen that allows these risks to go largely unexamined. We need to confront the actual economic challenges in this country that demand our attention. Inflation remains a persistent concern; global economic uncertainty looms large; and the labor market is evolving in ways that require nuanced, long-term policy responses. The Fed's role in steering the economy through these complexities is critical, and must remain insulated from political impulse. Historically, the independence of the Fed has been fiercely guarded, even amid the most intense political storms. Since the Fed was founded in 1913, no president has ever removed a Fed Chair over a policy disagreement. This resilience is a testament to the wisdom of the legislators who recognized that monetary policy divorced from partisan politics is essential to economic stability and democratic governance. In the end, the renewed speculation about Trump firing Powell serves neither truth nor the public interest. It is a distraction — one that misrepresents legal reality and trivializes the importance of independent institutions. Our focus should be on safeguarding those institutions, understanding the economic stakes, and fostering a political culture that respects the boundaries of power. Because in a functioning democracy, some walls are meant to hold firm, no matter who sits in the Oval Office.
Forbes
2 days ago
- Business
- Forbes
The Five Fintech Jobs Gen AI Will Replace First
Roles, often characterized by repetitive data processing and structured communication, are the first ... More to be profoundly reshaped or replaced by Generative AI. The drumbeat of automation has long been a feature of the fintech landscape. Yet, the crescendo has reached a fever pitch with the arrival of Generative AI. Far beyond the robotic process automation of the past, Gen AI platforms can now reason, create and analyze with a sophistication that rivals human capability. This isn't just another tech upgrade; it's a fundamental workforce reckoning. As a July 2025 report from the Brookings Institution aptly states, AI is actively "rewriting work in finance," creating a new paradigm of hybrid roles where human and machine collaborate. While no corner of the industry will remain untouched, certain positions are squarely in the path of this disruption. These roles, often characterized by repetitive data processing and structured communication, are the first to be profoundly reshaped or replaced by Generative AI. 1. The Entry-Level Financial Analyst For decades, the path to a Wall Street or fintech career began in the analyst bullpen, a rite of passage that involved countless hours building models and summarizing reports. Gen AI is automating this entire process. An AI model can now ingest terabytes of data, generate a discounted cash flow (DCF) model, and draft an initial investment memo before a human even logs on. This evolution reflects what the Brookings Institution calls a shift toward "hybrid jobs," where human expertise is used to direct and verify AI-driven analysis rather than perform it manually. The future analyst's role will be to query the AI, validate its outputs and add a layer of strategic insight: a shift from data-gatherer to AI-interrogator. 2. The Customer Service Representative The call center has long been a target for automation, but today's AI-powered agents are a world away from the clumsy chatbots of the past. They can understand conversational nuance, provide personalized responses and operate 24/7 at a fraction of the cost. This trend is already in motion. As noted in the Brookings report, the Swedish fintech Klarna now has the vast majority of its workforce using Gen AI daily, fundamentally changing roles like customer support. The remaining human agents will become escalation specialists, handling only the most sensitive cases that require genuine empathy, a skill AI has yet to master. 3. The Compliance Analyst The financial industry is bound by a labyrinth of regulations like Anti-Money Laundering (AML) and Know Your Customer (KYC). Generative AI excels at the large-scale pattern detection required for compliance, monitoring millions of transactions in real time to flag suspicious activity with far greater accuracy. This moves the human from a data-sifter to an AI auditor, a transition underscored by the Brookings analysis, which emphasizes the growing importance of human oversight in AI-augmented risk management systems. The human professional's job will evolve into designing, training and auditing these AI systems. 4. The Data Entry Clerk Perhaps the most immediately vulnerable role is the data entry clerk. In fintech, this job involves manually inputting information from invoices, loan applications, and customer onboarding forms into digital systems. Advanced AI, equipped with sophisticated optical character recognition (OCR), can now extract and input this data with near-perfect accuracy in real time. A process that once took a team of clerks hours can be completed in minutes. There is little evolution for this role; it is a clear case of technological replacement, freeing up human capital for tasks that require critical thinking. 5. The Content Marketer Fintechs rely on a steady stream of content to engage clients. Generative AI can now produce high-quality, SEO-optimized articles, social media copy and market updates on demand. While it may lack a truly unique voice, it can handle the bulk of routine content creation. This pushes human marketers up the value chain, forcing them to become strategists who manage AI as a tool, a prime example of the workforce transformation detailed by Brookings. Their future lies not in writing every word, but in crafting the creative campaigns and brand voice that the AI will then amplify. The message for the fintech workforce is clear, and it's a conclusion echoed in the July 2025 Brookings Institution report: The age of the "hybrid worker" is here. The roles being reshaped are not just a sign of jobs lost, but a signal of a massive shift in the skills required. The survivors, and indeed the future leaders, will be those who learn to collaborate with their new AI colleagues, leveraging technology to amplify their own uniquely human capacity for strategy, creativity and judgment. For more like this on Forbes, check out Selling Financial Services Online? Forget SEO, Introducing GEO or What Is Agentic AI And What Will It Mean For Financial Services?.
Korea Herald
3 days ago
- Politics
- Korea Herald
Will Trump seek rendezvous with NK leader during APEC summit in S. Korea?
With a little over 100 days left before an Asia-Pacific summit in South Korea, questions are emerging about whether US President Donald Trump would seek to restart long-stalled diplomacy with North Korea should he decide to travel to attend the high-profile gathering. The White House has not announced whether Trump will join the Asia-Pacific Economic Cooperation summit set to take place in the southeastern city of Gyeongju from Oct. 31 to Nov. 1, but observers do not rule out the possibility of him attending the event and eyeing an interaction with North Korean leader Kim Jong-un. Trump has expressed his openness to reengaging with Kim, boasting of his "good" relationship with the reclusive leader. Late last month, he said the United States will "get the conflict solved" with North Korea if there is one -- yet another indication of his desire to resume dialogue with Pyongyang. Despite Trump's repeated show of interest in kick-starting dialogue with Kim, the unpalatable fact for him would be that much will hinge on whether Kim will accede to any diplomatic feeler from the US president at a time when Pyongyang enjoys a deepening partnership with Moscow. "I wouldn't be surprised if some effort would be made by the Trump administration to see if Kim might meet," Andrew Yeo, the SK-Korea Foundation chair at the Brookings Institution's Center for East Asia Policy Studies, told Yonhap News Agency via email. "But it will be Kim, not Trump, who will decide whether a meeting is possible," he added. Rob Rapson, former acting US ambassador to South Korea, said that given "Trump's flair for the dramatic," a visit, meeting or interaction with Kim somewhere in North Korea around the time of the APEC leaders' meeting cannot be completely ruled out. Rapson made the remarks, recalling the impromptu meeting between Trump and Kim at the inter-Korean truce village of Panmunjom in June 2019. It was one of the three meetings that the leaders have had, including the first one in Singapore in June 2018 and the second in Hanoi in February 2019. On Tuesday, South Korea's presidential office said it had sent invitation letters to the leaders of the 21 APEC member economies, including the US, China, Japan and Russia, as it is stepping up preparations for the Gyeongju summit to be held under the main theme of "Building a Sustainable Tomorrow." The likelihood of Trump attending the APEC summit is "considerably high," Cho Hyun, the nominee for foreign minister, told a parliamentary hearing this week without elaborating on the reason why he believed so. Should his APEC participation materialize, Trump might make a diplomatic gesture toward Kim, analysts predicted, as he has vowed to become a "peacemaker" as seen in his continued drive to end the war between Russia and Ukraine and the war between Israel and the Hamas militant group. But doubts remain over the prospects for reengagement as Pyongyang appears to have little appetite for talks with Washington at a time when it relies on Moscow for food, fuel, military support and other forms of aid under a "comprehensive strategic partnership" treaty signed in June last year. Last month, NK News reported that North Korean diplomats in New York had refused to accept a letter from Trump, which was aimed at reestablishing communication channels between Washington and Pyongyang -- a sign that Pyongyang is not ready for talks with the US But a window for engagement could open if Kim judges that he should cut back on -- or at least modulate -- reliance on Russia, whose support for the North could dwindle suddenly when the war in Ukraine winds down, eliminating Moscow's need to depend on Pyongyang for military supplies. Should dialogue between Trump and Kim resume, the North's nuclear quandary is likely to be high on the agenda given Trump's stated commitment to the "complete denuclearization" of North Korea. But many believe that it might be more difficult than past negotiations to seek a denuclearization deal with the North given the headway the recalcitrant regime has made in its nuclear and ballistic missile programs in recent years. The Trump administration's strike on key Iranian nuclear facilities last month might have further reinforced Pyongyang's belief that it should hew to its nuclear "treasure sword" rather than bargaining it away and potentially putting it at risk of foreign attacks. "I think one of the costs of our bombing of Iran is that we may have basically ended CVID with North Korea -- complete, verifiable, irreversible denuclearization with North Korea," Victor Cha, president of the Geopolitics and Foreign Policy Department at the Center for Strategic and International Studies, said during a recent CSIS event. "Because if anything, the lesson North Korea has taken away from this is ... we need to keep our weapons to avoid a dozen massive ordinance penetrators being dropped on North Korea, like they were dropped on Iran. I think, if anything, they are reaffirmed in their view that they have pursued the right path." Trump's engagement with Pyongyang, if realized, could move along with the North Korea policy of new South Korean President Lee Jae Myung's administration, which has expressed its hope to improve inter-Korean relations following a rough patch under the former government of conservative former President Yoon Suk Yeol. In a conciliatory gesture last month, the Lee administration suspended loudspeaker propaganda broadcasts against the North along the inter-Korean border, raising cautious hope for improvement in frosty cross-border ties. During his campaign, Lee also pledged to restore the 2018 inter-Korean military tension reduction pact suspended amid tensions between Seoul and Pyongyang during the Yoon administration. Despite the allies' willingness to engage with North Korea, close policy coordination is crucial to avoid unnecessary diplomatic friction, analysts have noted, amid concerns that Trump's direct approach to the North could run the risk of South Korea being sidelined or bypassed from the US leader's diplomatic outreach. The North Korean issue aside, Trump might have a full plate of issues to handle should he join the APEC summit. Among them are tariff issues and his administration's call for greater burden sharing with regional allies and partners, including South Korea. "2025 is perhaps the most challenging APEC year in recent memory, if ever, given the turbulence in the region and beyond generated in large part by President Trump and his administration's aggressive trade, investment and security, burden-sharing policies," Rapson said. Yeo anticipated that if Trump attends the APEC summit, he may discuss new tariffs and trade deals with Asia-Pacific countries, and address America's role in the region and the importance of the Indo-Pacific, a region home to the US' geopolitical rival, China. Given Trump's general dislike for general disdain for multilateral fora, especially where he is not the lead or center of attention, Rapson pointed out that questions are being raised about what role he might play at the APEC summit: "spoiler, disrupter, facilitator" or other roles. (Yonhap)
