Latest news with #OBBBA
Fibre2Fashion
6 hours ago
- Business
- Fibre2Fashion
Trump's OBBBA to add $3.39 trn to primary debt from 2025 to 2034: CBO
The One Big Beautiful Bill Act (OBBBA), signed into law on July 4, would add $3.39 trillion to the US primary debt between 2025 and 2034, according to a recent report by the non-partisan Congressional Budget Office (CBO). The latest CBO estimate is higher than its estimate of $3.25 trillion made at the end of June. The increase is estimated to result from a decrease in direct spending of $1.1 trillion and a decrease in revenues of $4.5 trillion, CBO said. The One Big Beautiful Bill Act would add $3.39 trillion to the US primary debt between 2025 and 2034, a report by the Congressional Budget Office said. The latest CBO estimate is higher than its estimate of $3.25 trillion made at the end of June. With interest, the tax and budget act would increase borrowing by an estimated $4.1 trillion, according to the Committee for a Responsible Federal Budget. With interest, the tax and budget act would increase borrowing by an estimated $4.1 trillion, according to Maya MacGuineas, president of the Committee for a Responsible Federal Budget. "It's still hard to believe that policymakers just added $4 trillion to the debt. Many supporters of this law have spent months or years appropriately fuming about our unsustainable fiscal situation. But when they actually had an opportunity to fix it, they instead made it $4 trillion worse," said MacGuineas in a statement. 'Modelers from across the ideological spectrum universally agree that any sustained economic benefits are likely to be modest, or negative, and not one serious estimate claims this bill will improve our financial situation,' she said. As of mid-2025, the US national debt stands at over $36.2 trillion, and the debt-to-gross domestic product ratio has exceeded its peak during World War II. President Donald Trump signed the bill into law after weeks of debate among congressional Republicans. The bill passed the Senate 51-50 before it passed the House of Representatives 218-214. Democrats have universally criticised the bill. Fibre2Fashion News Desk (DS)
Business Upturn
19 hours ago
- Business
- Business Upturn
Trump's ‘Big Beautiful Bill' Sacrifices Coal Country for Politics
By GlobeNewswire Published on July 22, 2025, 21:41 IST Washington, D.C., July 22, 2025 (GLOBE NEWSWIRE) — On July 4, President Donald Trump signed the 'One Big Beautiful Bill Act' (OBBBA) into law. This sweeping bill repeals clean energy and manufacturing investments and initiatives, and cuts funding for programs like Medicaid and the Supplemental Nutritional Assistance Program (SNAP). The bill includes several provisions that will negatively impact coal communities by cutting off access to programs designed to revitalize and diversify the economies of coal-dependent areas while creating good jobs. 'Donald Trump left coal communities out in the cold during his first term and he's doing it again now. He talks a big game about defending coal communities, but his words are empty and his actions tell the real story,' said BlueGreen Alliance Executive Director Jason Walsh. 'Trump isn't interested in policies that will help the workers and communities bearing the brunt of the energy transition. Instead, he's dismantling them and feeding families false hope just to help his rich friends get richer.' Contact If you have any questions, need additional information, or would like to set up an interview with one of our policy experts, please contact our Press Secretary, Justin Jackson at [email protected] or (951) 214-9108. _____________________________________________________________________________________ Background The 'Big Beautiful Bill Act' signed into law by Donald Trump is yet another part of his agenda that serves as a direct attack on coal workers and communities. This bill accelerates the administration's efforts to wipe out critical protections for miners, dismantle job-creating investments, and disrupt the economic future of coal communities across the country. OBBBA is a Direct Attack on Progress in Coal Communities The bill eliminates programs that have created union jobs, driven private investment, and safeguarded public and personal health. It includes deep cuts to the tax credits that support clean energy development and domestic manufacturing nationwide and essentially voids the tax bonus specifically targeted toward fossil fuel communities. In addition, it reverses the major progress already underway from the once-in-a-generation investments delivered through the Inflation Reduction Act—just as coal communities are beginning to feel the impact of those long-overdue benefits. The OBBBA could be devastating to coal communities. The bill: Butchered clean energy tax credits, nullifying the bonus that specifically incentivizes developing clean energy projects in energy communities. Killed remaining funds for the Greenhouse Gas Reduction Fund putting the Green Bank for Rural America in jeopardy even if the courts unfreeze their illegally withheld funds. Turned the Energy Infrastructure Reinvestment Financing loan program into the 'Energy Dominance' loan program, diverting the attention of the program from reinvesting in long-term clean energy solutions to propping up financially struggling coal and natural gas plants. Expanded the 45X Advanced Manufacturing Tax Credit to subsidize the production of metallurgical coal. Currently, the majority of metallurgical coal mined in the United States is exported. Companies will face no labor standards or requirements for the coal to be sold domestically to claim the full value of the tax credit. Other actions by the administration: Continues to withhold approximately $500 million from the Green Bank for Rural America, a recipient of Greenhouse Gas Reduction Fund awards that is dedicated to using its lending power to drive investments into rural communities and coal communities. Withheld grant funding for clean energy projects on mine lands, a program created by the Bipartisan Infrastructure Law. Select projects have begun to move forward, though some still have not. Those projects face further headwinds due to the budget bill killing clean energy incentives. The BlueGreen Alliance Is Holding Trump and Congress Accountable The Trump administration and Congress don't want to create jobs, lower energy costs, and build a better future. If they did, they would listen to communities, not ignore them. Their actions don't just undercut progress—they undermine decades of work to secure legacy and hard-fought-for investments for coal communities. The BlueGreen Alliance is ringing the alarm. We're tracking every vote, flagging every broken promise, highlighting each investment, and calling out elected officials who put donors over workers. Coal communities deserve better and we're making sure to hold elected officials accountable. Disclaimer: The above press release comes to you under an arrangement with GlobeNewswire. Business Upturn takes no editorial responsibility for the same. Ahmedabad Plane Crash GlobeNewswire provides press release distribution services globally, with substantial operations in North America and Europe.
Forbes
a day ago
- Business
- Forbes
OBBBA Revises Existing GILTI Tax Rules For U.S. Shareholders Of CFCs
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) On July 4, 2025, President Trump signed into law Pub. L. No. 119-21, also known as the 'One Big Beautiful Bill Act' or 'OBBBA'. The OBBBA makes substantial revisions to many parts of the Internal Revenue Code of 1986, as amended (the 'Code'), including notable changes to the existing Global Intangible Low-Tax Income ('GILTI') inclusion rules. These revisions are discussed more below. The GILTI Regime Prior to the enactment of the Tax Cuts and Jobs Act of 2017 ('TCJA'), many U.S. shareholders with interests in controlled foreign corporations ('CFCs') enjoyed income tax deferral on the CFC's non-passive or 'active' trade or business income. Instead of paying income tax on the CFC's business income each year, U.S. shareholders paid income tax only when the funds earned from the CFC's business were repatriated to them in the form of a dividend. The TCJA modified the deferral rules, requiring U.S. shareholders to report most active business income of a CFC as a GILTI inclusion (regardless of whether the funds are repatriated to the U.S.). Section 951A of the Code contains the GILTI inclusion rules. The provision is complex and chock full of statutory definitions and exclusions. At its basics, U.S. shareholders of a CFC include GILTI as income based on the CFC's 'tested income' with certain deductions. In turn, tested income is defined broadly to include most types of active business income earned overseas that are not already subject to U.S. income tax (e.g., tested income excludes subpart F income and income that is effectively connected with a U.S. trade or business). The current GILTI regime includes two significant reductions to the GILTI inclusion. First, a U.S. shareholder may reduce the GILTI inclusion by a 'net deemed tangible income return' or 'NDTIR.' Very generally, shareholders compute their NDTIR as 10% of the shareholder's allocable share of 'qualified business asset investment,' i.e., the CFC's depreciable trade or business assets. Second, a U.S. shareholder who is a domestic corporation or an individual who has made a valid election to be treated as a domestic corporation under Code section 962 may receive an additional GILTI deduction under Code section 250. For the 2025 tax year, the Code section 250 deduction is 50% of the GILTI inclusion. Prior to enactment of the OBBBA, this 50% rate was scheduled to be reduced to 37.5% starting in the 2026 tax year. Example: Domestic Corporation ('DC') owns 100% of Foreign Corporation ('FC'), a CFC. In 2023, FC earned $1 million of trade or business income from non-passive activities outside the U.S. Also in 2023, FC had an average quarterly qualified business asset investment of $500,000. To compute the GILTI inclusion, DC starts with the $1 million of active trade or business income and reduces that amount by the NDTIR, which is 10% of $500,000, or $50,000. With the 50% section 250 deduction of $475,000 ($950,000 x 50%), DC has a GILTI inclusion of $475,000. With current corporate tax rates of 21%, DC must pay U.S. tax of $99,750 with respect to the GILTI inclusion. OBBBA's GILTI Revisions The OBBBA makes several important revisions to the existing GILTI regime. As an initial matter, it eliminates the GILTI inclusion reduction for NDTIR and renames the GILTI inclusion 'Net CFC Tested Income.' Because foreign corporations no longer receive a NDTIR for eligible depreciable assets, U.S. shareholders should be mindful of the potential tax increases in 2026 when the OBBBA provisions become effective. Although the removal of the NDTIR may increase some U.S. shareholders' Net CFC Tested Income, there are some taxpayer-friendly rules in the OBBBA. As mentioned previously, the Code section 250 deduction—currently 50% of the GILTI inclusion—was scheduled for a reduction of 37.5% in 2026. Under the OBBBA, the Code section 250 deduction is revised to 40% without any further reductions planned in the immediate future. Example: Same facts as the example above except DC and FC are now subject to the OBBBA. With the removal of the NDTIR, DC may no longer claim a reduction in GILTI of $50,000 for FC's qualified business asset investment. In addition, DC's section 250 deduction is now 40% of the Net CFC Tested Income, or $400,000. Accordingly, DC must pay income tax of $126,000 (i.e., 21% of $600,000). OBBBA's Foreign Tax Credit Revisions Foreign tax credits often mitigate the U.S. income tax consequences of foreign business activities. Under GILTI, a U.S. corporate shareholder (or an individual shareholder who made a Code section 962 election) can claim deemed foreign tax credits against U.S. income taxes associated with the GILTI inclusion. However, GILTI limited the allowable foreign tax credits to 80% of the foreign taxes associated with the inclusion (subject to an income gross up). The OBBBA also permits U.S. corporate shareholders (or individual shareholders with a Code section 962 election) to claim a deemed foreign tax credit with respect to the Net CFC Tested Income amounts. However, the OBBBA permits these shareholders to claim an increased 90% of the foreign taxes allocable to the income. Summary The U.S. tax rules associated with CFCs are complex and nuanced (e.g., the IRS Form 5471 filing obligation). Because these rules will change for the 2026 tax year, U.S. shareholders with interests in CFCs should consult with their tax advisors to determine the impact of the changes on their unique tax circumstances.
Business Recorder
a day ago
- Business
- Business Recorder
New $250 ‘visa integrity fee' to raise cost for visiting USA
Foreign travellers will soon have to pay a new 'visa integrity' fee, which is $250 initially and is likely to increase over the years based on inflation, to visit the United States. The new levy was imposed under a provision of the One Big Beautiful Bill Act (OBBBA), a domestic policy bill, which has recently been enacted by the Trump administration. The bill is expected to affect hundreds and thousands of visitors, as the fee applies to nearly all nonimmigrant visa categories, CNN reported. Those visiting as tourists and for business purpose, international students and others visiting temporarily will have to pay this fees. As per the State Department data, the US issued around 11 million nonimmigrant visas last year. Tourists and businessmen belonging to various European countries and Australia as well as other such countries which part of the Visa Waiver Program will not require to obtain visas for stays up to 90 days. As per the bill's provision, fees could be refunded to the travellers who comply with their visa conditions upon completion of their visit. In a recent post regarding the new policy, immigration lawyer Steven A. Brown, a partner at Houston-based Reddy Neumann Brown PC, described the fee as a 'refundable security deposit.' Brown said that the process for getting a refund is still not clear though. In an email to CNN, Brown said in terms of the purpose of the fee, 'it's hard to say.' 'Generally, immigration fees are to cover the expense of adjudication or issuance,' but he stated that the refund provision could mean reimbursing all of the fees submitted. 'In a perfect world, there would be no overstays or visa violations.' Quoting Brown as saying CNBC also reported that the fee has not been implemented as yet. The Department of Homeland Security (DHS), the agency establishing the new fee, believes it will reduce overstays by travellers, Forbes reported. The DHS has so far not specified about the refund process or any other aspects of the policy's rollout. 'The visa integrity fee requires cross-agency coordination before implementation,' a DHS official told CNN. A State Department spokesperson said the levy was imposed 'to support the administration's priorities of strengthening immigration enforcement, deterring visa overstays, and funding border security.' The provision in the bill says fees that aren't reimbursed will be 'deposited into the general fund of the Treasury'. Meanwhile, the US Travel Association has raised concerns about the potential negative impact on tourism, especially with upcoming international events. The association called the fee 'a giant leap backwards.'
Business Recorder
a day ago
- Business
- Business Recorder
New $250 ‘visa integrity fee' to raise costs for visiting USA
Foreign travellers will soon have to pay a new 'visa integrity' fee, which is $250 initially and is likely to increase over the years based on inflation, to visit the United States. The new levy was imposed under a provision of the One Big Beautiful Bill Act (OBBBA), a domestic policy bill, which has recently been enacted by the Trump administration. The bill is expected to affect hundreds and thousands of visitors, as the fee applies to nearly all nonimmigrant visa categories, CNN reported. Those visiting as tourists and for business purpose, international students and others visiting temporarily will have to pay this fees. As per the State Department data, the US issued around 11 million nonimmigrant visas last year. Tourists and businessmen belonging to various European countries and Australia as well as other such countries which part of the Visa Waiver Program will not require to obtain visas for stays up to 90 days. They will be required to pay while applying for the visas, with no fee waivers offered. As per the bill's provision, fees could be refunded to the travelers who comply with their visa conditions upon completion of their visit. In a recent post regarding the new policy, immigration lawyer Steven A. Brown, a partner at Houston-based Reddy Neumann Brown PC, described the fee as a 'refundable security deposit.' Brown said that the process for getting a refund is still not clear though. In an email to CNN, Brown said in terms of the purpose of the fee, 'it's hard to say.' 'Generally, immigration fees are to cover the expense of adjudication or issuance,' but he stated that the refund provision could mean reimbursing all of the fees submitted. 'In a perfect world, there would be no overstays or visa violations.' Quoting Brown as saying CNBC reported that the fee has not been implemented as yet. The Department of Homeland Security (DHS), the agency establishing the new fee, believes it will reduce overstays by travellers, Forbes reported. The DHS has so far not specified about the refund process or any other aspects of the policy's rollout. 'The visa integrity fee requires cross-agency coordination before implementation,' a DHS official told CNN. A State Department spokesperson said the levy was imposed 'to support the administration's priorities of strengthening immigration enforcement, deterring visa overstays, and funding border security.' The provision in the bill says fees that aren't reimbursed will be 'deposited into the general fund of the Treasury'. Meanwhile, the US Travel Association has raised concerns about the potential negative impact on tourism, especially with upcoming international events. The association called the fee 'a giant leap backwards.'
