Latest news with #BBB
Gulf Today
12 hours ago
- Business
- Gulf Today
Plot twist: Republicans just got families more money
Abby McCloskey, Tribune News Service Washington is a funny place. I don't think President Donald Trump was thinking about former President Joe Biden with his One Big Beautiful Bill Act (OBBBA). But it certainly seems to poke fun at Biden's BBB (Build Back Better) plan in name — and exceed it in some of its family priorities. The Democrats' BBB was all about supporting working families with child care, paid leave and an expanded Child Tax Credit — but it never made it past the Democratic-held Senate. Somehow it was Republicans who ended up taking ground on these working family policies in their behemoth reconciliation package. How's that for a political scramble? The OBBBA will impact families in myriad ways — but while Medicaid cuts, Trump Accounts and the expanded Child Tax Credit have all gotten attention, two working family provisions have flown under the radar. The first is child care — specifically, tax incentives to get employers to include it as part of their compensation packages. The law expands the employer-provided child care credit (45F) in size and scope. The law increases the maximum annual credit from $150,000 to $500,000, raises the percentage of qualifying expenses to 40%, and allows small businesses to access a credit up to $600,000 at 50% of qualified expenses. The credit is intended to persuade companies to build or operate child care facilities or to contract with an existing child care provider to secure slots for employees' children. Critics are sceptical that this will impact child care in a meaningful way. They argue that the take-up of this tax credit has been relatively small in the past. It can end up rewarding large companies that are already offering such support. And even with a partial offset, child care is a huge expense and most companies simply don't have the margin to subsidize it. This is a critique I also have lobbed, preferring for the money to go directly to parents. A 2022 GAO study supports these concerns, finding that only 200 companies filed for the credit in 2016 (the most recent data available) for a total of less than $20 million in benefits. But supporters say the credit has been underused because the offset has not been large enough and that the significant OBBBA expansion will help, especially for small businesses. Time will tell. The tax-and-spending law also expands direct child care support for families. The law increased the maximum annual amount for dependent care flexible spending accounts (an employer-sponsored account similar to a health care FSA). Parents can use these funds to pay for daycare for children under 13 with pretax dollars, but the cap had not been raised since 1986. The new law raises it from $5,000 to $7,500. For me, the big win in the OBBBA is that it expands the Child and Dependent Tax Credit — not to be confused with the Child Tax Credit. (The CTC is a general payment to family, while the CDCTC is used against child care expenses specifically.) The expansion of the CDCTC allows it to cover up to 50% of eligible child care costs, and the cap is now indexed to inflation. This tax credit was created nearly 50 years ago, with an average claimed credit of$206 (or $1,166 in today's dollars). Inflation and the relative cost of child care have eaten away at the size of that credit, which has not been expanded since 2001 except for a pandemic-related boost. I've long argued that the CDCTC should be thought of as a school-choice programme for early childhood care. Just like states are starting to give parents public vouchers to use towards the cost of a K-12 school of parents' choice, a CDCTC payment could help to offset the cost of a parent's choice for an early childhood care provider, be it to help pay for a nanny or centre-based care or faith-based Mom's Day Out programme, whether full-time, part-time, or something in between. There are still ways the credit can be improved, such as being made larger and refundable, distributed in a timelier manner, and paired with reform to child care regulation. In wilder moments, I've proposed that the entirety of the CTC be converted into the CDCTC to be used as a $10,000 educational voucher given every year for the first five years of a child's life. (For families not requiring child care in the early years, these funds could apply to homeschool materials, tutoring, private primary and secondary school, or college.) But the expansion is a step in the right direction — thanks in large part to the bipartisan leadership of senators Katie Britt, Republican of Alabama, and Tim Kaine, Democrat of Virginia. But wait, there's more. The OBBBA made permanent a temporary credit for paid leave passed by a Republican Congress in 2017. This credit partially offsets costs to companies that provide paid family and medical leave (45S) and allows it to be applied against insurance premiums. There's no question that greater access to paid leave would result in improved health and economic outcomes for parents and children, especially with regard to childbirth.
CTV News
2 days ago
- CTV News
‘Incredibly disheartening': Calgary Humane Society among animal rescues targeted by scam
Two local non-profit animal organizations are warning others about a scam they almost fell victim to, which involved fake cheques and emotional manipulation. The Calgary Humane Society and Alice Sanctuary say they've both been the targets of an overpayment scam recently. The humane society takes in thousands of animals a year, and that comes at a cost. 'At Calgary Humane Society, we don't receive any government funding. We rely on the generosity of the public, from private donors and from our corporate sponsors,' said Anna-Lee Fitzsimmons with the humane society. The rescues received cheques for $95,000, which would have made a huge difference. The cheques came with letters from a lawyer, claiming the money was gifted from a donor's estate. But there was a hitch. They were also asked to send back a certain, lesser amount to cover the cost of an injured dog but could keep the rest. 'It was quite manipulative when you think about it, using their partners and the loss, the grief. Then Lizzie, their dog, who was also in urgent medical care. That's what they needed the $70,000 for and then $25,000 was to be donated to us at the sanctuary,' said Janneane Madill with Alice Sanctuary. In an overpayment scam, the fraudsters hope you deposit the cheque and transfer your money to them before the bank's hold period ends and they confirm the cheque bounced. Luckily, neither group submitted their cheque when red flags began to pop up. 'It's incredibly disheartening, incredibly selfish. You know, animals in Calgary need this help. So, yeah, very disappointing and quite surprising as well. We've never seen anything like this come through,' said Fitzsimmons. Data from the Canadian Anti-Fraud Centre shows Canadians lost almost $640 million to fraud last year. The Better Business Bureau (BBB) estimates that stat is higher because only five per cent of fraud gets reported to police. In this situation, the BBB suggests fact-checking. 'You need to verify the information. Who are they? Their identity, address, phone number, email, their bank and so on. You can verify and validate a lot of information. The other thing is don't take the cheque and start spending the money,' said Wes Lafortune with the BBB. You can head to the BBB's Scam Tracker online to learn what types of scams are out there, so you don't become a victim.
Forbes
4 days ago
- Business
- Forbes
Big Beautiful Bill Just Made The Plaintiff Double Tax Permanent
President Trump signed into law the One Big Beautiful Bill Act, making permanent many temporary tax ... More changes from the Tax Cuts & Jobs Act. The One Big Beautiful Bill Act ('BBB') made permanent several temporary provisions of the Tax Cuts and Jobs Act of 2017 ('TCJA'), while also introducing changes to numerous items related to individual income tax. Several provisions in the BBB affect personal injury plaintiffs and plaintiff firms. Plaintiff Double Tax Is Here To Stay When a plaintiff receives taxable proceeds from a verdict or settlement, they're taxable on 100% of it. That's true even when the plaintiff keeps only 60% after subtracting 40% for their lawyer's contingent fee. Of course, their lawyer still pays tax on that amount. Thus, the fee portion is taxed twice. The double tax hits plaintiffs bringing many types of claims, including those for emotional distress in the absence of physical injuries, bad faith denials of insurance coverage, and defamation. It also hits plaintiffs in many sexual abuse cases and other physical injury cases with taxable proceeds, including punitive damages and post-judgment interest. Legal fees have long been deductible under the miscellaneous itemized deduction rules. However, the TCJA eliminated the miscellaneous itemized deduction for tax years 2018 through 2025. That created the 'plaintiff double tax.' Many hoped that the TCJA's elimination of the deduction would expire on December 31, 2025, when most of the TCJA's tax changes were scheduled to sunset. However, the BBB permanently eliminated this deduction. Legal fee deductions are still available in limited settings, including in cases of 'unlawful discrimination.' BBB Made the TCJA's Lower Tax Rates Permanent The TCJA reduced individual tax rates at nearly all levels of taxable income, with the most significant benefits accruing to those at higher income levels. If the TCJA's reduced tax rates had expired on December 31, 2025, the top three income brackets would have paid federal income tax rates of 33%, 35%, and 39.6%, respectively. The BBB made the TCJA's reduced tax rates permanent. Thus, the top tax rate will remain at 37%. No New Litigation Finance Tax An earlier version of the BBB included a punitive tax on litigation finance companies. Especially when plaintiff firms oppose wealthy corporate defendants, access to litigation finance can be critical. Many opposed the new tax, which was removed from the final version of the BBB. Unsurprisingly, many believe it will be proposed again. The change would have imposed a tax equal to the highest individual rate, plus 3.8%, or 40.8%, on 'qualified litigation proceeds received by a covered party.' A covered party was 'any third party to a civil action which receives funds pursuant to a litigation financing agreement and is not an attorney representing a party to such civil action.' 'Qualified litigation proceeds' were 'realized gains, net income or other profit received by a covered party during the taxable year which is derived from, or pursuant to, any litigation financing arrangement,' and could not be reduced by 'any ordinary or capital losses.' This is all to say – it would have obstructed most litigation finance. Says University of Chicago Law School Lecturer Michael Kelley, 'The proposed litigation finance tax would have had the most negative impact on individuals and small and medium size businesses, which would lose access to funding necessary to litigate meritorious claims against much larger and well-funded tortfeasors and infringers. The bill would also have stifled technological innovation, resulting in tax revenue losses far exceeding any projected tax revenue gains payable by litigation funders under the proposed bill.' No AI Regulation Moratorium Artificial intelligence ('AI') is making it easier for bad actors to engage in unlawful or criminal behavior, such as creating algorithms that make discriminatory employment decisions and powering 'deep fake' technology that creates fake or obscene images of others. In response to this rising threat, states and localities are considering legislation that would regulate the use of AI. An early version of the BBB threatened the ability of states and localities to do so. That version included a provision imposing a 10-year moratorium on state and local enforcement of 'any law or regulation . . . limiting, restricting, or otherwise regulating artificial intelligence models, artificial intelligence systems, or automated decision systems entered into interstate commerce.' The bill would have made AI regulation the sole province of the federal government for the next decade. However, the final version of the BBB dropped the moratorium. SALT Deduction Gets a Bump, and PTET Remains Intact One of the TCJA's most controversial provisions was limiting the individual taxpayer deduction for state and local tax ('SALT') payments to $10,000. Many saw the provision as an effort by Republican lawmakers to punish individuals who live in 'blue' high-tax, large-population states like California, New Jersey, and New York. The BBB increased the SALT deduction cap to $40,000 for 2025 for taxpayers making less than $500,000, which will increase by 1% each year from 2026 through 2029 before reverting to $10,000 in 2030. Taxpayers with a modified adjusted gross income of over $500,000 have a $40,000 cap that is phased downward to a $10,000 floor in 2025 through 2029. Equally relevant for plaintiff attorneys who own firms organized as pass-through entities like partnerships, limited liability companies, S corporations, or sole proprietorships is that the final BBB does not contain a restriction on state-level pass-through entity tax ('PTET') that an earlier version had. PTET is a workaround developed by states after the TCJA. Because the SALT deduction cap generally does not apply to entities, with PTET, a pass-through entity can deduct the amount of the state tax it paid, reducing the taxable income allocated to its owners and avoiding the $10,000 SALT limit. The owners of the pass-through entity receive a state tax credit equal to the amount the entity paid. Opportunity Missed for Sexual Abuse Victims Though legislation was introduced earlier this year to exempt from tax recovery proceeds received by sexual abuse victims, that change didn't make it into the BBB. There are legislative opportunities later in the year, including in a technical corrections bill.
The Independent
24-07-2025
- Business
- The Independent
MTG again lashes out at Trump this time over his AI plan: ‘An absolute threat to federalism'
Republican Rep. Marjorie Taylor Greene, a staunch ally of the MAGA movement, broke from President Donald Trump on Thursday to oppose his executive order on artificial intelligence, raising concerns about its impact on the environment and states' rights. Hoping to accelerate the United States's development of AI, Trump signed a series of executive orders on Wednesday, making it easier to build data centers on federal lands and incentivizing states to impose fewer regulations by threatening to withhold federal funding to AI projects. But Greene raised a red flag, saying she was concerned with the impact of massive data centers on the people and environment around, while providing little to no regulations. 'My deep concerns are that the EO demands rapid AI expansion with little to no guardrails and breaks. It also contains the threat of withholding federal funds from states who regulate AI, which is an absolute threat to federalism and why I strongly opposed the AI state moratorium originally in the BBB,' Greene wrote on X. Trump has pushed for more AI development in the U.S., hoping for companies such as Meta, Google, OpenAI, and Microsoft to develop and expand their AI technology beyond what the Chinese-based company DeepSeek has already done. But the Georgia congresswoman said the 'rushed AI expansion' should include a plan to address human and environmental impact – with particular concerns around using nearby water supplies that cross state lines. 'Competing with China does not mean become like China by threatening state rights, replacing human jobs on mass scale creating mass poverty, and creating potentially devastating effects on our environment and critical water supply,' Greene wrote. 'This needs a careful and wise approach. The AI EO takes the opposite.' Greene's statement is the latest in a string of opposing stances that she has taken against Trump, whom she has typically expressed unwavering loyalty to. Recently, Greene has also criticized the administration for not releasing the Epstein Files, a recent Trump-backed crypto bill, and the president's decision to intervene in the Iran–Israel conflict by bombing Iranian nuclear facilities. Her additional opposition also comes at a moment of contention between the president and his MAGA base. Trump's dismissal of the Epstein Files, of which conspiracy theories have floated in the MAGA world for years, appears to have caused a fracture in his base's trust. It's unclear how many may feel about the AI bill, but Greene's opposition provides some insight. 'I represent the base and when I'm frustrated and upset over the direction of things, you better be clear, the base is not happy,' Greene said on X back in May.
CTV News
24-07-2025
- Health
- CTV News
‘An old scam with new tools': BBB warns of fake health products
The Better Business Bureau says scammers are using fake ads for health products to trick customers online. (Pexels/Pixabay) The Better Business Bureau is warning Albertans to watch out for a surge in fake online ads promoting health and wellness products that are either ineffective, unsafe, or part of outright scams. 'These kinds of scams literally have been going back since the 1900s,' said Wes Lafortune, media relations spokesperson for the BBB Serving Alberta and East Kootenay. 'Even before that, it was snake oil. So, it's the same thing — people make these wild claims about health products such as smartwatches that can monitor glucose, or you could lose weight with a pill and go down 30 pounds in a month — really over-the-top claims.' The BBB says scammers are now using artificial intelligence to impersonate trusted health professionals and community figures in misleading video ads. Some use fake endorsements from celebrities or health organizations to appear legitimate. 'It's an old scam with new tools, is how I'd put it,' said Lafortune. 'You might actually get some kind of product that is not worth purchasing, or you simply are being scammed for your credit card information, and they steal it. And, you know, it's fraud.' The organization issued an alert this week, pointing to a rise in deceptive ads that have been reported across Alberta. While many are circulating on social media, others are landing directly in people's inboxes. 'What's happening is people are just noticing a lot of these ads,' Lafortune said. 'This alert is all about getting out in front of it and warning people. They're taking advantage of people that have sometimes legitimate health concerns — and so it can be a serious issue.' The BBB advises consumers to speak with a licensed health professional before trying any new products and to avoid companies making 'miracle' claims. How to protect yourself: be wary of ads promising 'miracle' results or rapid weight loss without diet or exercise; don't trust celebrity endorsements or familiar logos at face value — they're often faked; check product ingredients with Health Canada and avoid items without full disclosure; watch out for 'free trials' that may be hidden subscription traps. research vendors using and read consumer reviews; and report suspicious ads to BBB Scam Tracker, the Canadian Anti-Fraud Centre, or your local police non-emergency line. 'You really should talk to your physician if you have a serious health issue or a health issue that you're concerned about,' said Lafortune. He added that scammers often lure victims with promises of free trials or hidden subscription traps and stressed the importance of reading the fine print before buying anything online. 'What Better Business Bureau wants to do is make people aware of these fraudulent activities, so they don't lose their personal information, lose their money and get defrauded,' he said.
