Latest news with #OneBigBeautifulAct
Yahoo
7 days ago
- Business
- Yahoo
What Trump's New Tax Law Means for Upper-Middle-Class Families in 2025
President Trump signed his 'One Big Beautiful Act' (OBBA) into law and Americans will see sweeping changes to their finances as a result. The final bill includes a senior bonus to help offset Social Security taxes, tax breaks for service industry employees, a bigger Child Tax Credit, but will also make Trump's Tax Cuts and Jobs Act of 2017 (TCJA) permanent and cut funding for Medicaid and Medicare, per the Center for American Progress. Read Next: For You: While the bill has been touted as a way to offer financial relief to Americans, it doesn't exactly give much help. 'This thing is mostly smoke and mirrors for upper middle class families (that $117,000 to $150,000 range),' said finance expert Andrew Lokenauth with Be Fluent in Finance. 'You're not getting hammered, but you're not winning either.' Here's what Trump's new tax law really means for the upper-middle class, according to tax and finance experts. Increased Standard Deduction The standard deduction is rising to $15,000 for single filers, an increase of $400 and $30,000 for married couples, which is an increase of $800 per the IRS.'This is a big win for families in this income bracket who don't itemize deductions,' said Peter Diamond, a federally licensed tax, accounting, real estate and structure and certified bankability expert.'Most upper middle class taxpayers don't exceed the itemization threshold, especially with the SALT (state and local taxes) cap still in place. The increased standard deduction gives them a bigger automatic write-off, reducing taxable income and simplifying filing,' he according to Lokenauth, that change could cost some taxpayers more. 'If you're in that $120,000 to $150,000 income zone, especially with a mortgage, the loss of personal exemptions and caps on SALT means you're probably paying more now than you did before 2018,' he added. Check Out: Expanded Child Tax Credit The Child Tax Credit was a big talking point for Trump and Vice President Vance. The credit boosted from $2,000 per qualifying child to $2,220 beginning in 2026, per CNBC. Parents must earn $200,000 a year or less or joint filers up to $400,000. 'That means many families in the $117,000 to $150,000 range, who were previously phased out of this credit, now qualify again,' Diamond said. 'For a family with two children, that's up to $4,000 in tax credits, which directly reduces the tax bill dollar-for-dollar.'However, the new revisions are not as good as they seem, Lokenauth said. 'We got the credit — but the alternative minimum tax (AMT) and phaseouts on other things like education credits basically neutralized any real benefit,' he explained. 'The math got messier, not cleaner.' SALT Deduction Cap Remains While there are ways the upper middle class can get a small break, the State and Local Tax deduction cap will not offer relief, according to Diamond. 'The $10,000 cap remains, which hits high-tax states hard,' he said. 'Families in this income range often pay well over $10,000 in combined property and state income taxes, but they can only deduct up to that cap. While some benefits elsewhere may offset this, it's still a frustrating limitation for many.' Mortgage Interest Deduction Previously under the TCJA you could deduct mortgage interest up to $1 million in debt, but it's now been reduced to $750,000. 'For a lot of upper middle class buyers in expensive housing markets (California, D.C. suburbs, New York burbs), this wipes out a big deduction you probably relied on,' Lokenauth explained.'A friend who bought in Westchester with a $900K mortgage was shocked to learn that only a portion of his interest was deductible. He said it cost him over $3,000 in missed tax savings in his first year alone,' he added. 20% QBI Deduction Extended The Qualified Business Income (QBI) deduction — allowing up to a 20% deduction on pass-through business income — has been extended.'This doesn't help W-2 earners, but for anyone in this income range with a side business, real estate rentals or 1099 income, it's a powerful tool. Structuring income the right way could significantly lower their taxable income,' Diamond an upper middle class income sounds great on paper, but it's not the comfortable salary needed to live after taxes and cost of living.'If you're making around $125,000, you're probably seeing some benefit from the current system — lower marginal rates, bigger standard deduction — but you're also losing more in deductions. Especially if you own a home or pay a lot in local taxes,' Lokenauth knowing the tax codes is beneficial and can work to your advantage, Diamond explained. 'The truth is, wage earners will always pay the most in taxes, while asset owners often pay the least. That's how the system is designed — but when you understand the code, you can use it to your advantage instead of being crushed by it,' he added. Editor's note on political coverage: GOBankingRates is nonpartisan and strives to cover all aspects of the economy objectively and present balanced reports on politically focused finance stories. You can find more coverage of this topic on This article originally appeared on What Trump's New Tax Law Means for Upper-Middle-Class Families in 2025
Yahoo
18-07-2025
- Business
- Yahoo
Trump's $1tn for Pentagon to add huge planet-heating emissions, study shows
Donald Trump's huge spending boost for the Pentagon will produce an additional 26 megatons (Mt) of planet-heating gases – on a par with the annual carbon equivalent (CO2e) emissions generated by 68 gas power plants or the entire country of Croatia, new research reveals. The Pentagon's 2026 budget – and climate footprint – is set to surge to $1tn thanks to the president's One Big Beautiful Act, a 17% rise on last year. Military emissions are closely tied to military spending. The budget bonanza will push the Pentagon's total greenhouse emissions to a staggering 178 Mt of CO2e, resulting in an estimated $47bn in economic damages globally, according to new analysis by the Climate and Community Institute (CCI), a US-based research thinktank, shared exclusively with the Guardian. The huge increase in military spending comes amid worsening climate breakdown, and as Americans – many of them Trump voters – are being hit by destructive extreme weather events such as wildfires, extreme heat and the recent floods in Texas, as well as sea-level rise and other slow-onset climate effects. Trump's 2026 budget legislation slashes federal funding for science, education, Medicaid, food stamps, emergency management, the National Weather Service and humanitarian aid – in order to pay for the military expansion, tax cuts for the wealthy, and Trump's violent immigration crackdown. Trump has also withdrawn the US from the Paris climate accords for the second time, and rolled back Biden-era investments in renewable energies such as solar and wind that are key to weaning the US off fossil fuels in order to curtail climate catastrophe. The US is the largest historical contributor to the climate crisis, and currently the second worst emitter after China – a country with quadruple the population. Emitting 178 Mt of CO2e would make the US military and its industrial apparatus the 38th largest emitter in the world if it were its own nation – and more than the entire annual carbon footprint of Ethiopia, a country of 135 million people. 'Every extra dollar grows the Pentagon's carbon bootprint – and shrinks the chances for a livable future. With this additional funding from the big beautiful bill, the US's trillion-dollar war machine will be responsible for more emissions than 138 individual countries,' said Patrick Bigger, lead author and CCI research director. 'Supposedly this spending is for national security. But what security is there in more droughts, floods, hurricanes, and rising seas?' 'Every dollar of military spending has a climate cost, with procurement decisions being made now risking locking us into decades of emissions through carbon-intensive military equipment,' said Ellie Kinney, climate advocacy coordinator at the Conflict and Environment Observatory (Ceobs). The Pentagon – the US armed forces and Department of Defense (DoD) agencies – is the largest single fossil-fuel consumer in the US, already accounting for about 80% of all government emissions. In 2023, it spent $860bn, generating almost 152Mt of climate pollution through a combination of overseas operations, jet-fuel consumption and domestic base upkeep – as well as emissions from manufacturing the weapons, ships, tanks and planes it operates, according to a previous analysis by Transnational Institute. The 2026 emissions figure uses the same methodology based on military spending, calculating emissions from the Pentagon's operations and full supply chain from the vast US military-industrial complex. The US currently operates 877 overseas military bases – two and a half times more than the rest of the world combined, according to recent analysis. A growing share of the Pentagon budget goes to private companies, with more than half its discretionary spending between 2020 and 2024 going to weapons contractors. The Pentagon has long been the world's largest institutional greenhouse gas emitter. The 2026 $1tn budget will make the total Pentagon carbon footprint equivalent to the annual emissions from 47 coal power plants. Yet the Pentagon's true climate impact will almost certainly be worse, as the calculation does not include emissions generated from future supplemental funding such as the billions of dollars appropriated separately for military equipment for Israel and Ukraine in recent years. Every megaton of CO2 counts, as emissions drive global heating, which is supercharging deadly, destructive and costly extreme weather such as hurricanes, wildfires and drought. The US is already spending nearly $1tn a year on disaster recovery, one recent analysis found. Next year's Pentagon emissions will cause $47bn in economic damages including impacts on agriculture, human health and property from extreme weather, according to the EPA social cost of carbon calculator, adjusted to 2025 dollars. The $150bn Pentagon budget top-up is about five times the annual budget allocated to the Federal Emergency Management Agency (Fema) in recent years – an agency that Trump has threatened to eliminate entirely. 'Amidst a summer of oppressive heat, the Trump administration is dismantling the government's disaster preparedness and response capabilities. Prioritizing military expansion while underfunding disaster response doesn't keep communities safe,' said co-author Lorah Steichen, policy manager at CCI. 'The $150bn increase to military spending is comparable to the amount needed to fund whole-building, deep-energy retrofits for all the nation's public housing units – a true investment in human security.' US military spending and emissions are the highest in the world by a long way. And it is thanks to the US that states are not required to account for military emissions to the UN. In the run-up to the Kyoto protocol, the 1997 international treaty that set binding targets for greenhouse gas reductions, the Pentagon successfully lobbied the Clinton White House to push for a blanket exemption for emissions generated by military fuel use. Still, the total military carbon footprint is estimated at about 5.5% of global emissions – excluding greenhouse gases from conflict and war fighting. This is more than the combined contribution of civilian aviation (2%) and shipping (3%). And the Pentagon has long warned that water scarcity, sea-level rise and desertification in vulnerable regions could lead to political instability and forced migration, framing climate change as a 'threat multiplier' to US interests. In 1991, George HW Bush formally acknowledged climate change as a national security threat. In March this year Trump's defence secretary, Pete Hegseth, wrote on X: 'The @DeptofDefense does not do climate change crap. We do training and warfighting.' Hegseth ordered the termination of dozens of climate studies and renewable energy programs at the Pentagon aimed at making the military both more efficient and resilient. The Pentagon did not respond to requests for comment. The 2024 report is no longer on its website. Military spending is rising across the globe, hitting a record $2.7tn in 2024. This military buildup will have catastrophic climate consequences. Kinney from Ceobs said: 'We cannot keep ignoring the military's contribution to the climate crisis – militaries must be transparent about the scale of their emissions and must make serious commitments to reduce their carbon footprint.' Solve the daily Crossword
Yahoo
16-07-2025
- Business
- Yahoo
Medicaid Cuts? Yes. But the GOP Is Quietly Cutting Medicare, Too.
PAYGO is not a term that crosses many lips in daily discourse. But it may soon be used more widely, as its impact resonates in the aftermath of the passage of the so-called One Big Beautiful Act. While the enormous and damaging cuts in Medicaid have dominated discussion since the bill was enacted—cuts that will take millions of Americans off of health insurance, force the closure of many rural hospitals and nursing homes, and likely put enormous increased pressure on emergency rooms across the country—another shoe is soon to drop. And that is major cuts in its sister program, Medicare. That reality has gone unmentioned in most media discussion of the changes soon to rock the American health care system. But in fact, the cuts in Medicare will begin even before those in Medicaid—ones conveniently put off by congressional Republicans until after the 2026 midterm elections. How is this possible, since Medicare is exempted from cuts in the budget reconciliation process used to pass the OBBB? The answer is in a longstanding practice, originally enacted in 1990 and built into the law and congressional rules, that requires pay-as-you-go budgeting—hence, PAYGO. PAYGO is triggered when budgets over five- and 10-year periods add to deficits. And this 'beautiful' bill does so bigly—to the tune of $3.4 trillion over 10 years. That means automatic cuts, known in the trade as sequesters, across much of the federal budget. Ironically, Medicaid, along with Social Security, Supplemental Security Assistance (SSI), and SNAP (food stamps) are exempt from sequesters. But Medicare is not. And it faces a whopping $533 billion in cuts over the next decade. The cuts, to be sure, are limited to no more than 4 percent of the program's budget each year. But that is not a nominal sum, and it will cause devastating problems, and not just for seniors. Along with the massive cuts in Medicaid and the cuts to coverage under the Affordable Care Act, we are headed for a triple whammy against health care in America. What could happen to Medicare if and when these cuts occur? First, payments to hospitals, physicians, and health care providers will be hit. Hospitals, and not just ones in rural areas, are already stretched thin. More cuts means closures or cutbacks in services— when any hospital closes, every other hospital in the area feels it; already overloaded emergency rooms in hospitals will be even more overloaded. And with payments already low, further cuts in Medicare reimbursements may mean more providers refusing to accept Medicare entirely, which will reduce access to care. Seniors may see higher out-of-pocket costs for drugs and medical devices. Those using Medicare Advantage plans may see cutbacks in dental, vision, and hearing coverage. Then there is the Medicare Savings Program (MSP), which provides assistance for the poorest—those known as dual eligibles, who qualify both for Medicaid and Medicare, including many with disabilities. The program serves more than 10 million Americans. For most of them, Medicare is the primary insurer, with Medicaid secondary, and they get assistance to cover more of their Medicare premiums and out-of-pocket costs. Congress and the Biden administration had acted to streamline MSP to cut red tape and make the program more efficient and easier to use for the dual-eligible population—and save both recipients and states money through the efficiencies. But the reconciliation bill mindlessly delayed most of those improvements until 2034, causing more pain and more costs along the way. Many people think of Medicare as a program for seniors, Medicaid as a program for the poor, both detached from the rest of the population. Of course, that's not true, as many other parts of the population are actually served by those federal programs. And while we have a mixed health care system with many different and disparate component parts, they are all interrelated, much as our organs are related in our bodies. Changes in one part have a ripple effect through all the rest. And these cuts will ultimately profoundly affect all Americans, from those in the provider community to those of us who rely on them to protect and heal us. Of course, Congress can act to block the Medicare cuts, something it has done in the past. But radical Freedom Caucus Republicans, who have been trying for years to get their hands on Medicare, may see this as their only chance, and could well have enough clout to ensure the sequester takes effect. Republicans have tried over and over to privatize and reduce Medicare and Social Security, and to slash Medicaid to the bone. They mostly have failed. This time is different. DOGE has already made its impact felt, cutting Social Security personnel and making it difficult for seniors to call in with questions or problems, including missed monthly payments that for many are their only source of income. Now the combination of the reconciliation 'One Big Beautiful Bill' and the PAYGO cuts in Medicare will add to the pain faced by those benefiting from these popular and essential programs. This is not about waste, fraud, and abuse. It is about the fundamental safety net for the majority of Americans whose lives will be shaken by mindless and cruel cuts. As always, there is a chance that voters will not make the connection between Republican responsibility for the pain that will ensue, that the right-wing wind machine, led by Fox, talk radio, and social media will blame Biden and Democrats or just become more angry at government, insurers and medical providers. Democrats need to abandon their usual belief that the actions will speak for themselves, and work relentlessly to make clear why this is happening and who is responsible. Democrats in Congress need to hold hearings outside hospitals in red districts and states, talking to doctors and seniors about what pain they are facing, while doubling down on their successful practice of holding town halls in those red districts. They need to use every opportunity on every media outlet, on House and Senate floors and in committees, to talk about what is happening and why. They need to go to nursing homes, assisted living facilities and elsewhere to highlight the damage. And they need to educate voters on why this matters to all of us, not just seniors. Just as Important, they need to make the connection between these mindless and cruel cuts and the real priority of Trump and Republicans in Congress—to give more and more tax cuts to the wealthiest among us. Solve the daily Crossword
India Today
09-07-2025
- Automotive
- India Today
Elon Musk's political crash test: Tesla comes out dented
Elon Musk gave his full-throated support to Donald Trump in the run-up to the 2024 US Elections. This gave a significant push to Tesla's stocks, which skyrocketed after Trump's victory. However, the speculation about anti-EV legislation in the One Big Beautiful Bill caused Musk and Trump to publicly part ways, with the former proposing a new political party, the America Party. But did everything go well with Tesla?advertisementAn informal survey by Morgan Stanley in March showed that 85 per cent of nearly 250 clients believed that Musk's political activism either had a negative or extremely negative effect on Tesla's business. Tesla's letter to the US Trade Representatives itself validates the findings of the Morgan Stanley letter, written on March 11, said: 'US exporters are inherently exposed to disproportionate impacts when other countries respond to US trade actions. For example, past trade actions by the United States have resulted in immediate reactions by the targeted countries, including increased tariffs on EVs imported into those countries.' It added that past US special tariff actions increased costs to Tesla for vehicles manufactured in the US, and increased costs for those same vehicles when exported from the US, resulting in a less competitive international marketplace for American manufacturers. It suggested that the USTR should investigate ways to avoid these pitfalls in future SlideThe impact of political activism has started to show on Tesla's sales numbers. Tesla sold 91,996 cars in the European Union in January–May 2024, which nearly halved to 50,413 during the same interval in 2025, according to the European Automobile Manufacturers' China, Tesla sold 2.78 lakh cars from January to June 2024, which fell to 2.63 lakh cars in the corresponding period in 2025. Overall, global sales in the first quarter, January–March 2025, fell to 3.37 lakh from 3.87 lakh last SlideTesla's shares rose significantly after Trump stood out victorious, but as soon as the fight between the duo began, Tesla was the first one to take the hit. Ever since January 2025, Tesla has been shedding off gains during pessimistic events arising from the Musk-Trump spat. On June 5, 2025, Tesla shares dropped 14 per cent, wiping out over $150 billion in market value. From $379.28 on January 2, 2025, Tesla's shares dropped to $293.94 on July SlideWhile the past few months have been rough for Tesla, the near future holds no relief. The One Big Beautiful Act is seen as anti-EV, and might target the Chinese supply chain, crucial for EV parts. It also eases the road for cars running on conventional fuel, giving strong competition to high-cost EVs. The loss of subsidies for Tesla is another major threat.- EndsTune InMust Watch
Newsweek
04-07-2025
- Business
- Newsweek
Donald Trump Shares Warning for Thomas Massie in Kentucky
Based on facts, either observed and verified firsthand by the reporter, or reported and verified from knowledgeable sources. Newsweek AI is in beta. Translations may contain inaccuracies—please refer to the original content. President Donald Trump shared a poll indicating Rep. Thomas Massie would lose a GOP primary contest to a candidate he backed after the House Republican was one of just two who voted against his Big Beautiful Bill when it passed the House of Representatives on Thursday. Newsweek contacted Massie for comment via email on Friday outside of regular office hours. Why It Matters On Thursday the House passed the latest version of Trump's One Big Beautiful Act by 218 votes against 214. Massie was one of two House Republicans who voted against the package, along with Brian Fitzpatrick of Pennsylvania. He was also one of two GOP rebels who voted against an earlier version which the House passed in May, along with Ohio's Warren Davidson. Trump's targeting of Kentucky representative Massie, who has opposed him over a number of issues including airstrikes on Iran and the U.S. debt ceiling, show's the president's determination to keep his own party in line. Trump branded Massie a "pathetic LOSER" after he opposed Trump's Iran strikes in June. What To Know After the House vote on Thursday Trump shared a document emailed out by pollster McLaughlin & Associates on June 11 titled "Kentucky 4th Congressional District – Republican Primary Poll Summary" on his Truth Social website. McLaughlin & Associates, a firm that has previously worked for Trump and was described as his "most trusted pollsters" by The Hill, said it surveyed 600 likely Republican primary voters between June 9 and 11 with a margin of error of plus or minus four percent. The company said the "geographic and demographic voter segments" reflected "a Republican primary universe." The poll found 54 percent of Republican primary voters had a favorable view of Massie, compared with 40 percent who viewed him unfavorably. Similarly 52 percent approved of his actions in Congress while 41 percent disapproved. Left, Rep. Thomas Massie speaks to reporters following a series of votes at the U.S. Capitol in Washington, D.C., on March 11, 2025. Right, President Donald Trump arrives for a rally to kick off the... Left, Rep. Thomas Massie speaks to reporters following a series of votes at the U.S. Capitol in Washington, D.C., on March 11, 2025. Right, President Donald Trump arrives for a rally to kick off the July Fourth holiday weekend at the Iowa State Fairgrounds in Des Moines, Iowa, on July 3, 2025. More Anna Moneymaker/Scott Olson/GETTY The survey found Massie would lose in a Republican primary to a Trump endorsed candidate, with just 23 percent of the vote to their 52 percent. Overall 85 percent of those polled said they had a favorable view of Trump while 15 percent viewed him unfavorably. Respondents were told that "Thomas Massie was the only Republican in the House of Representatives who sided with the Democrats and voted against President Trump's tax cut bill" after which 59 percent of the GOP primary voters said they would be less likely to vote for Massie, against 19 percent who stated they would be more likely. Trump's "big, beautiful bill" contains an array of tax and spending measures. Tax cuts Trump introduced in 2017 would be made permanent, while state and local tax deductions would increase from $10,000 to $40,000—primarily benefiting those living in high-tax states. The bill also includes additional funding for border security and the military and cuts to Medicaid and food stamps. It passed the Senate on Tuesday thanks to Vice President JD Vance's tie-breaking vote. What People Are Saying McLaughlin & Associates wrote: "In the Republican primary Congressman Massie has made himself very vulnerable by his opposition to the President's tax cut bill and has destroyed his Republican base of support." In a post on X, formerly Twitter, Massie said: "Although there were some conservative wins in the budget reconciliation bill (OBBBA), I voted No on final passage because it will significantly increase U.S. budget deficits in the near term, negatively impacting all Americans through sustained inflation and high interest rates." What Happens Next Having been narrowly approved by both chambers of Congress Trump will now be able to sign the Big Beautiful Bill into law.
