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Business Insider
a day ago
- Business
- Business Insider
11 states offer 'sales tax holidays' on back-to-school supplies including MacBooks. See the full list.
If you're a Floridian eyeing a new MacBook, you might want to wait until next month to go shopping. About a dozen US states are gearing up for the sales tax holidays they hold during back-to-school season each year. These holidays allow shoppers to buy certain items without paying state sales tax. For example, Florida's sales tax holiday, held this year from August 1 to August 31, covers eligible clothing, shoes, accessories, school supplies, and computers that cost less than $1,500. These state tax exemptions can offer big savings, especially on pricey items like electronics. In Massachusetts, shoppers could buy a brand new 16-inch MacBook Pro for its retail price of $2,499 instead of the estimated $2,720 a New Yorker would have to pay after tax. Apple is promoting the state tax exemptions on its website, as MacRumors previously reported. Many of the states hold their tax holidays in July and August in preparation for students returning to school and advertise the tax-free period as a back-to-school sales tax holiday. The specific dates can vary from year to year. Some also offer sales-tax breaks at other times of year on items such as emergency preparedness supplies or household appliances. Florida is set to give residents a tax break on hunting, camping, and fishing gear beginning September 8. Sales taxes make up almost half of state tax revenues, according to 2024 Census data. These holidays combined will cost states and localities nearly $1.3 billion in lost revenue this year, the Institute on Taxation and Economic Policy estimated. These are some states that have sales tax holidays for electronics and school supplies. Each state's department of revenue or taxation website has more details. These states offer tax savings on computers, tech accessories, and more Alabama (July 18 to July 20): Computers less than $750 and other items such as eligible clothing and school supplies Alaska (October 2024 to March 31, 2025): All retail sales in the Municipality of Skagway Arkansas (August 2 and August 3): Electronic devices, including laptops, and other items such as eligible clothing and school supplies Florida (August 1 to August 31): Computers $1,500 or less, and other items such as eligible clothing and school supplies Massachusetts (August 9 and August 10): Tangible personal property, including computers, $2,500 or less on Missouri (August 1 to August 3): Personal computers, $1,500 or less, and other items such as eligible clothing and school supplies New Mexico (July 25 to July 27): Computers $1,000 or less, related hardware for $500 or less, and other items such as eligible clothing and school supplies Ohio (August 1 to August 3): All tangible personal property that's $500 or less South Carolina (August 1 to August 3): Computers and related supplies, as well as other items such as eligible clothing, bedding, and school supplies Tennessee (July 25 to July 27): Personal computers $1,500 or less, and other items such as eligible clothing and school supplies Virginia (August 1 to August 3): Cell phone chargers or batteries $60 or less West Virginia (August 1 to August 4): Computers $500 or less, and other items such as eligible clothing, school supplies, and sports equipment. These states have sales tax holidays for other items like back-to-school supplies Several states also offer sales tax holidays on other items, such as clothing, footwear, or back-to-school supplies. They include: Connecticut, Iowa, Louisiana, Maryland, Mississippi, Oklahoma, and Texas.
Boston Globe
21-07-2025
- Business
- Boston Globe
A way forward as new federal law slashes aid to Rhode Islanders
Food insecurity will also worsen. More than 144,000 Rhode Islanders rely on SNAP and about 22,000 of them may lose some of their benefits. Congress has also shifted more of the burden of funding Medicaid and SNAP to states. For the first time, our state will be expected to shoulder 15 percent of SNAP benefits, at a cost of $51.8 million per year, plus an additional $15.8 million annually in administrative costs previously covered by federal dollars. Get Rhode Map A weekday briefing from veteran Rhode Island reporters, focused on the things that matter most in the Ocean State. Enter Email Sign Up However, all is not lost. There is a Rhode Forward, if we are willing to act boldly. Advertisement Information is power: We must urgently understand what is in this law and how its provisions will impact health care, food security, education, and our state budget. We need clear, timely analysis and a coordinated statewide response to prepare for the timeline of these cuts. Build a Rhode Island solution together: We need collective, strategic action that includes community leaders, policy experts, philanthropists, state agencies, and lawmakers. We must protect essential services while building an economy that sustains us all. Advance tax justice: The new federal law exposes the injustice in our tax system. While essential services are being cut, tax breaks for the wealthy that began in 2017 have been extended and will continue immediately in 2026. According to the Institute on Taxation and Economic Policy, Rhode Island's top 1 percent will receive $354 million in total tax cuts, an average of $58,840 per filer. That is far more than they would have paid under the Rhode Island's tax policy must counter this by finally creating a fair tax structure. Most Rhode Islanders agree that the wealthy must do their part and pay their Advertisement Call a special fall legislative session: Thanks to the foresight of the Senate and House leadership, the 2025 legislative session remains in recess, which allows for the opportunity of a special fall session. We urge leadership to reconvene to fully review and proactively plan against the harms of the reconciliation law and pass the Top 1 percent bill, which would raise $190 million annually, with $95 million available in FY 2026. We propose allocating this revenue to: Add funds to the Supplemental Rainy Day Fund, moving us closer to 10% or more of General Revenue, like most New England states. Fully fund RIPTA, strengthening our economy and reducing barriers to employment. Provide a cost-of-living increase for Rhode Island Works, the state's cash assistance and workforce development program for the poorest Rhode Islanders. Fund enhanced premium tax credits or alternatively, use contributions from all commercial insurance, including large employer plans. While some of these cuts won't go into effect immediately, we cannot afford to wait until benefits are lost or our state budget is facing worse deficits. Lawmakers must act now. We need to be ahead of the crisis. We must treat this moment with the urgency it deserves and prepare today for what is coming our way. Weayonnoh Nelson-Davies, Esq., is the executive director of the Economic Progress Institute.
Axios
08-07-2025
- Business
- Axios
Trump's "big, beautiful bill" stops short of "no tax on tips" promise
The fine print in President Trump's recently signed"big, beautiful bill" could restrict savings for some tipped workers. Why it matters: Trump made "no taxes on tips" a centerpiece of his presidential campaign — and while a provision in the new law honors that idea on the surface, it doesn't eliminate all taxes. Here's what to know: How does the "big, beautiful bill" impact tipped workers? State of play: A qualifying worker's first $25,000 in tips are exempt from income taxes. Tipped workers will still pay 7.65% in payroll taxes that fund Social Security and Medicare. The law shouts out food service and cosmetics industry workers specifically, stressing that the tax exemption will apply "only to certain lines of business." By the numbers: The tax deduction would decrease once a worker's income hits $150,000 — decreasing further at $300,000. Tipped workers filing a joint return with spouses would also see less of a deduction. The law also requires workers to provide their Social Security numbers — as well as any spouses — making undocumented workers ineligible for the tax break. Undocumented immigrants paid $96.7 billion in federal, state, and local taxes in 2022, per the Institute on Taxation and Economic Policy (ITEP). When does the tax provision go into effect? The law will apply to the current tax year, including tips already accrued. How many tipped workers are there? About four million people in the U.S. earned tips in 2023, according to Yale University's Budget Lab. That's 2.5% of all workers. Two-thirds of restaurant workers who work for tips earn so little that they don't pay federal income taxes, per a 2024 report parsing data from the Census Bureau's American Community Survey. Workers are currently taxed on tips, which puts an added financial strain on a demographic that tends to be lower income. The median weekly wage for tipped occupations in 2023 was $538, versus $1,000 for non-tipped workers, per the Budget Lab. What did Trump promise tipped workers on the campaign trail? "No tax on tips" began as a promise Trump made during a 2024 campaign stop in Nevada. It has since become a top talking point for Republicans as they've promoted their megabill. The intrigue: "No tax on tips" has emerged as a rare bipartisan, populist policy. Former Vice President Kamala Harris adopted the promise as a part of her own presidential campaign two months after Trump did. In May, the Senate passed a separate "No Tax on Tips Act" in a surprise move, which no lawmakers — Republican or Democrat — objected to. Will no taxes on tips help tipped workers?
Time of India
08-07-2025
- Business
- Time of India
5 things to know about the US school choice law in the 'One, Big, Beautiful Bill'
US launches first nationwide private school choice programme under new education law. (AI Image) The "One, Big, Beautiful Bill" signed into law by US President Donald Trump on July 4 has introduced a significant new national education policy. The law includes a federally funded private school choice provision, making it the first of its kind to be implemented at the federal level in the United States. As reported by K12Dive, the provision forms part of a larger tax and spending package and has been framed by supporters as a major advancement in parental choice for K–12 education. It offers families access to financial resources for a wide range of education-related expenses. However, the structure and implementation of the programme carry key details that stakeholders will need to understand ahead of its rollout. A nationwide school choice programme backed by federal funds The law establishes the first nationwide, federally funded private school choice initiative in the US. Unlike previous programmes limited to state or local levels, this measure allows eligible families across the country to access scholarships for private and home education. According to K12Dive, it covers both secular and religious schools, as well as public school expenses such as tutoring and transport. Parents may use the funds for tuition, educational therapies, technology, and even homeschooling costs. However, participation depends on whether individual states choose to opt in to the federal programme, and as K12Dive noted, it is not yet clear which agencies or leaders will make that determination. Eligibility linked to local income levels Families whose household income does not exceed 300% of the median gross income for their locality will qualify for the programme. For example, as reported by K12Dive, students in Memphis in families earning up to $364,400 would be eligible, based on a local median income of $91,100. The law entrusts scholarship-granting organisations, which must be independent and unaffiliated with any school, to assess eligibility and distribute scholarships. Parents cannot directly use tax credits to fund their child's education expenses. A tax credit model with significant fiscal implications The school choice programme is structured around a unique federal tax incentive. Taxpayers who contribute up to $1,700 annually to a qualified scholarship-granting organisation will receive a 100% federal income tax credit. As highlighted by K12Dive, this dollar-for-dollar tax benefit is unlike any other charitable giving structure currently available under federal law. The Institute on Taxation and Economic Policy (ITEP), cited by K12Dive, estimated that if 43% of taxpayers—approximately 59 million people—participate, the cost to the federal government could reach $101 billion per year. The law does not impose a cap on total programme expenditure, despite earlier legislative proposals limiting it to $4 billion or $5 billion annually. Programme implementation set for 2027 The law specifies that the tax credit will begin for taxable years ending after December 31, 2026. This means the full rollout is expected in 2027. Between now and then, the US Department of Education must establish regulations for the programme's operation, including reporting, enforcement, and state certification of scholarship-granting organisations. As per K12Dive, no implementation timeline has yet been released by the Department. Key questions remain regarding how this programme will integrate with the existing 35 state-level private school choice schemes serving around 1.3 million students, as noted by EdChoice. Mixed reactions and ongoing preparations While some groups have welcomed the bill, others have expressed concern. Anthony J. de Nicola, chairman of the Invest in Education Coalition, stated that the law represents "a huge victory for American families," as quoted by K12Dive. On the other hand, EdTrust, an education equity group, criticised the measure as an "extremely costly federal voucher programme" with limited oversight, and referred to the legislation as the "Great American Heist," according to K12Dive. The law's long-term impact will depend on decisions made at the state level and on federal regulations yet to be finalised. As K12Dive reported, both school choice advocates and public school supporters are expected to remain active in shaping the future of this landmark programme. TOI Education is on WhatsApp now. Follow us here . Ready to navigate global policies? Secure your overseas future. Get expert guidance now!
CNBC
03-07-2025
- Business
- CNBC
Trump ‘big beautiful' bill gives top 1% biggest tax cuts in these states
A massive package of tax cuts championed by President Trump and awaiting a final vote in the House would be a windfall for the wealthiest U.S. households. But the size of that financial benefit depends largely on where high-income taxpayers live, according to a new analysis by the Institute on Taxation and Economic Policy. The legislation would give the top 1% of U.S. households an average tax cut of about $66,000, or about 2.4% of their income, in 2026, according to ITEP, a left-leaning think tank. (These households have incomes of $917,000 or more per year, averaging about $2.7 million, it said.) Some households stand to get a much bigger tax benefit. The wealthiest households in three states — Wyoming, South Dakota and Texas — would see their annual tax bills fall by more than $100,000, ITEP found. In Wyoming, the top 1% would see their taxes fall most: by an average of about $133,000 (or 3% of income) in 2026, it said. The average income of the top 1% in the state is about $4.5 million. "The bill is most advantageous to conservative-leaning states that have a lot of very wealthy people living within their borders," said Carl Davis, ITEP's research director. These states also don't levy personal income taxes, he said. Wyoming and Texas "are classic examples of states with a lot of wealthy people and which tax those wealthy people incredibly lightly," Davis said. Senate Republicans passed the legislation, originally called the One Big Beautiful Bill Act, on Tuesday with the slimmest of margins. House Republicans are poised to pass the bill Thursday and send it to the president for his signature. The legislation offers more than $4 trillion of net tax cuts over a decade, with most benefits accruing to higher-income households, analyses have found. It also slashes the social safety net, cutting billions of dollars from programs like Medicaid and food stamps meant to help lower earners. More from Personal Finance:Top five tax changes for the wealthy in Trump megabillTrump tax deductions may not carry large benefits for low earnersTrump megabill axes $7,500 EV tax credit after September The centerpiece of the bill is an extension of 2017 tax cuts enacted during President Trump's first term in office. Overall, the legislation lowers income tax rates, exempts a larger share of wealthy estates from taxation and offers tax breaks to business owners. These are among the core ways the GOP bill benefits high-income households, Davis said. It also caps the amount of state and local income taxes and property taxes that households can deduct from their taxable income each year, at $40,000. That "SALT" policy doesn't negatively impact wealthy residents in states like Wyoming, South Dakota and Texas, where residents don't owe state income tax, Davis said. But it has a large impact on states with high state and local income taxes and property taxes. In other words, high-income residents of Wyoming, South Dakota and Texas generally get most of the tax upside and not much downside, he said. Conversely, the highest earners in California and New Jersey would see a smaller tax cut in 2026, averaging about $34,000 and $21,000, respectively, ITEP found. That represents about 1% of their income in each state. Separate analyses have found that the wealthiest households will reap the largest financial benefits from the GOP bill. The top 20% of U.S. households (earning more than $217,000 a year) would get a tax cut equivalent to 3.4% of their after-tax income in 2026, according to the Tax Policy Center. Meanwhile, the bottom 20% would get a 0.8% tax cut. Its analysis only examined the tax portions of the legislation. Overall, more comprehensive analyses that also account for cuts to programs like Medicaid and the Supplemental Nutrition Assistance Program, the lowest earners would be worse off, according to analyses by the Budget Lab at Yale University and the Congressional Budget Office, which modeled similar legislation passed by the House last month.
