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CNBC
29-05-2025
- Business
- CNBC
House Republican budget bill calls for bigger 'pass-through' business tax break. Who could benefit
Senate Republicans will soon debate trillions of tax breaks approved by House lawmakers, including a bigger deduction for small business owners, contractors, freelancers and gig economy workers. Enacted via the Tax Cuts and Jobs Act of 2017, the Section 199A deduction for qualified business income, or QBI, is currently worth up to 20% of eligible revenue, with some limitations. Without action from Congress, the QBI deduction will expire after 2025. But the House Republicans' "One Big Beautiful Bill Act" would make the provision permanent and expand the maximum tax break to 23% starting in 2026. More from Personal Finance:What the House GOP budget bill means for your money'Maycember' is almost over — here's how to recover financiallyCourt order challenges Trump's plan to move student loans to SBA The QBI deduction applies to so-called pass-through businesses, which report profits or losses on individual tax returns. This includes partnerships and S-corporations, along with some trusts and estates. Sole proprietors, such as freelance, contract and gig economy workers, also qualify. For 2025, the tax break starts to phaseout when taxable income reaches $197,300 for single filers and $394,600 for married taxpayers filing jointly. The deduction can be reduced or eliminated completely, depending on your earnings and type of business (more on that below). For tax year 2022, the most recent data available, there were roughly 25.6 million QBI deduction claims, up from 18.7 million in 2018, the first year of the tax break, according to IRS data. However, the deduction has been controversial because "most of the benefits flow to taxpayers with a lot of income," said Erica York, vice president of federal tax policy with the Tax Foundation's Center for Federal Tax Policy. "These are not taxpayers who work a W-2 job and earn a salary," she said. "They're business owners who receive business profits on their individual tax returns." Currently, certain white-collar professionals — doctors, lawyers, accountants, financial advisors and others — known as a "specified service trade or business," or SSTB, can't claim the QBI deduction once income exceeds certain limits. There's also an income phaseout for non-SSTB businesses, but that doesn't go to zero. The House bill would change the phaseout calculation, which could provide a bigger tax break for certain SSTB owners, said certified financial planner and enrolled agent Ben Henry-Moreland, senior financial planning nerd for advisor platform who analyzed the bill last week. If enacted, the higher 23% deduction could offer "some [tax] benefit" for all income levels, but the phaseout changes would primarily benefit higher-income SSTB owners, he said. The House proposed QBI deduction changes would be "more generous and more valuable to higher-income people, especially those in certain industries including lawyers and lobbyists," Chye-Ching Huang, executive director of the Tax Law Center at New York University Law, wrote in early May.
Yahoo
22-05-2025
- Business
- Yahoo
Low-income families would lose, wealthier ones would gain under GOP tax proposals
WASHINGTON ‒ Low-income families stand to lose hundreds if not thousands of dollars in income while wealthy ones will gain even more, according to a new analysis of Congressional Republican tax and budget proposals. The analysis from the Urban Institute, a Washington, D.C.-based think tank, which estimated that low-income families would 'suffer significant losses in net income,' assumed that lawmakers will extend temporary provisions of the Trump's Tax Cuts and Jobs Act of 2017. It also assumes $880 billion in Medicaid cuts and $230 billion in cuts to the Supplemental Nutrition Assistance Program, formerly known as food stamps. The report estimated that families with a modified adjusted gross income of less than $10,000 would lose over $2,700 (or nearly a 15% reduction in income). Families who make between $10,000 and $20,000 would lose over $800, or about 4.4% reduction in income, while families who make between $20,000 and $30,000 would lose $400, or about 1.5% reduction in income. In comparison, families with higher incomes would benefit from the extension of the 2017 tax cuts, including the expansion of the child tax credit. For instance, the institute estimated that families with an income of $75,000 to $100,000 would see a net gain of $1,220, or 1.8% in after-tax, after-transfer income. That figure increases to $2,360 for families who make between $100,000 to $200,000 and $13,200 for families with an income of above $200,000. This report notes that the analysis 'excludes other unspecified tax changes that might be included in a reconciliation bill.' These estimates come as Republicans in Congress have been hashing out the details of a mega-bill to advance President Donald Trump's legislative agenda. One of Trump's demands has been making his tax cuts permanent ‒ which would decrease federal tax revenue by $4.5 trillion over the next decade, according to the Tax Foundation. Medicaid, which provides health insurance to more than 70 million low-income Americans, has also been a subject of debate among lawmakers. Democrats and even some Republicans have railed against potential cuts to the program. Sen. Josh Hawley, R-Mo., argued in a New York Times opinion piece published May 12 that Congress should be doing everything to make working families' healthcare 'better and more affordable.' 'If Congress cuts funding for Medicaid benefits, Missouri workers and their children will lose their health care. And hospitals will close. It's that simple. And that pattern will replicate in states across the country,' he wrote. House Republicans released a proposal late Sunday that would enact work requirements and more frequent eligibility checks for Medicaid, among other things. New Jersey Democrat Rep. Frank Pallone, who sits on the Energy and Commerce Committee, blasted the proposal in a statement. "This is not trimming fat from around the edges, it's cutting to the bone. The overwhelming majority of the savings in this bill will come from taking health care away from millions of Americans. Nowhere in the bill are they cutting 'waste, fraud, and abuse' ‒ they're cutting people's health care and using that money to give tax breaks to billionaires," Pallone said in a statement. Contributing: Riley Beggin, USA TODAY This article originally appeared on USA TODAY: GOP tax proposals help the wealthy, cost the poorer, report finds
Yahoo
28-04-2025
- Business
- Yahoo
Amgen to invest $900m in Ohio manufacturing facility
Amgen has announced a significant expansion of a manufacturing facility in the US state of Ohio, with an investment of $900m. The move brings the total investment in Central Ohio to more than $1.4bn, and the total number of national employment opportunities created to 750. The expansion is part of the company's strategy to enhance its manufacturing offerings in the US. It first established its presence in the Ohio region in June 2021 with the announcement of a biomanufacturing facility in the Columbus Region, generating 400 employment opportunities. In February 2024, the company opened the 300,000 ft² Ohio facility to meet the growing demand for its medications within the country. Following the Tax Cuts and Jobs Act of 2017, Amgen has made substantial investments in the US. It has invested almost $5bn in direct capital expenditures, contributing an additional $12bn in downstream output to the country's economy. The Ohio expansion is part of Amgen's worldwide biomanufacturing network, which benefits from operational expertise and technological advancements. The investments across the US align with the company's focus on establishing biologics manufacturing capabilities globally. Amgen CEO and chairman Robert Bradway stated: "Today's investment reinforces our ongoing commitment to expanding US manufacturing and ensuring patients around the world have access to our innovative medicines. "Ohio offers a supportive business climate, skilled workforce and strategic location, making it an ideal choice for this next phase of our investment." In January 2025, Amgen inaugurated a new drug substance facility in the US after announcing a further $1bn expansion at its North Carolina site. "Amgen to invest $900m in Ohio manufacturing facility" was originally created and published by Pharmaceutical Technology, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site.
Yahoo
25-04-2025
- Business
- Yahoo
Amgen to expand Ohio biotech manufacturing plant
By Deena Beasley (Reuters) -Amgen on Friday announced a $900 million expansion of its Ohio biotech manufacturing facility, becoming the latest in a string of drugmakers pledging to increase U.S. capacity amid Trump administration threats of potential import tariffs. Amgen, based in Thousand Oaks, California, said the plans bring its total investment in central Ohio to more than $1.4 billion, creating 750 jobs. Other drugmakers committing recently to U.S. manufacturing expansions include Eli Lilly, Novartis, Roche, and Johnson & Johnson. Pharmaceutical Research and Manufacturers of America, the industry's trade group, has said it can take five to 10 years and $2 billion to launch a new U.S. production facility in part because of regulatory requirements. A study commissioned by the lobbying group found that tariffs could lead to higher drug prices. U.S. President Donald Trump's administration has opened a national security investigation into pharmaceuticals in a bid to demonstrate why the U.S. needs tariffs to boost domestic manufacturing. Rates and timing remain uncertain, but the industry has been lobbying for phased-in tariffs. Amgen said that since passage of the Tax Cuts and Jobs Act of 2017 it has invested almost $5 billion in U.S. capital expenditures, generating additional downstream output to the U.S. economy of around $12 billion. The biotechnology company announced in December plans to invest $1 billion to build a second drug substance manufacturing plant in Holly Springs, North Carolina. Amgen also has manufacturing facilities in Massachusetts, Rhode Island, California and Puerto Rico. Outside of the United States, Amgen's manufacturing operations are in Ireland, the Netherlands and Singapore. (Reporting By Deena Beasley; Editing by Hugh Lawson)
Reuters
25-04-2025
- Business
- Reuters
Amgen to expand Ohio biotech manufacturing plant
April 25 (Reuters) - Amgen (AMGN.O), opens new tab on Friday announced a $900 million expansion of its Ohio biotech manufacturing facility, becoming the latest in a string of drugmakers pledging to increase U.S. capacity amid Trump administration threats of potential import tariffs. Amgen, based in Thousand Oaks, California, said the plans bring its total investment in central Ohio to more than $1.4 billion, creating 750 jobs. Keep up with the latest medical breakthroughs and healthcare trends with the Reuters Health Rounds newsletter. Sign up here. Pharmaceutical Research and Manufacturers of America, the industry's trade group, has said it can take five to 10 years and $2 billion to launch a new U.S. production, opens new tab facility in part because of regulatory requirements. A study commissioned by the lobbying group found that tariffs could lead to higher drug prices. U.S. President Donald Trump's administration has opened a national security investigation into pharmaceuticals in a bid to demonstrate why the U.S. needs tariffs to boost domestic manufacturing. Rates and timing remain uncertain, but the industry has been lobbying for phased-in tariffs. Amgen said that since passage of the Tax Cuts and Jobs Act of 2017 it has invested almost $5 billion in U.S. capital expenditures, generating additional downstream output to the U.S. economy of around $12 billion. The biotechnology company announced in December plans to invest $1 billion to build a second drug substance manufacturing plant in Holly Springs, North Carolina. Amgen also has manufacturing facilities in Massachusetts, Rhode Island, California and Puerto Rico. Outside of the United States, Amgen's manufacturing operations are in Ireland, the Netherlands and Singapore.
