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Financial Proposal by Donald Trump at a Pivotal Moment:

Legislation Advocates Significant Amendments, such as Trump's 2017 Tax Reductions and Implementing Substantial Cuts to Social Benefits.

,   and  ASMedia
4 min read
Proposed legislation sets out significant reforms, such as Trump's 2017 tax reductions, along with...
Proposed legislation sets out significant reforms, such as Trump's 2017 tax reductions, along with severe budget cuts for social services.

Financial Proposal by Donald Trump at a Pivotal Moment:

In a pivotal moment for U.S. politics, the Republican-backed "big, beautiful bill" – a sweeping tax and spending legislation – is heating up. This 400-page monster of a bill hosts a plethora of proposals, ranging from extending the 2017 tax cuts, lowering taxes for businesses and individuals, and deep cuts to social programs like Medicaid and SNAP.

Got a Minute? Here's What You Need to Know

  1. The bill boosts the economy, according to the Republicans, while nonpartisan analysts warn it could balloon the national debt and strip millions of Americans of medical and food assistance.
  2. The legislation will hit the House Budget Committee's voting booth today, followed by a floor vote next week if it passes.
  3. The most substantial change in the bill is the extension of the 2017 tax cuts, adding an estimated $2.5 trillion to the national deficit over the next 10 years and decreasing federal tax revenue by a whopping $4 trillion by 2034.

Hop on Board for Journey Through the Bill

Spicy New Tax Cuts

The biggest delight for households might be the bill's increased standard deductions. For individuals, deductions increase by $1,000, while married couples see a $2,000 jump. The child tax credit of $2,000 is extended, with an extra $500 per child this year and running until 2028. Plus, there's a new $1,000 savings account for children born between December 31, 2024, and January 1, 2029. families can annually contribute $5,000 tax-free.

Here's the Scoop on Tax Changes for Seniors and Locals

Wanna lower your tax bill? Here's an interesting provision: a $4,000 annual deduction for folks aged 65 and above making a gross income of $75,000 or less for a single person and $150,000 for couples.

State and local tax (SALT) deductions also get a makeover. Filers can write off a portion of their local and state taxes from their federal filings, now with a cap raised from $10,000 to $30,000. However, this increase faces opposition from fiscal hawks who see it as relief for the already wealthy.

Businesses Sizzle with New Perks

Small businesses will enjoy an increased benefit allowing them to deduct 23% of their qualified business income from their taxes, up from the current 20%.

No Tax on the Riviera, But Not for Everyone

The bill eliminates taxes on tips, a major campaign promise for both Donald Trump and Kamala Harris. However, this perk doesn't apply to non-citizens, highly compensated employees, and those earning a tipped wage.

Crumbs from Uncle Sam's Table: Oh, the Irony!

While the bill aims to provide relief to citizens, it ends up making tax-paying more complicated. Adam Michel, director of tax policy studies at the Cato Institute, remarks, "It will just make tax paying more complicated and more uncertain when a lot of these things ultimately expire."

Social Safety Net: Gone Fishing?

The legislation calls for $880 billion in cuts to key social programs, mainly focusing on Medicaid and food stamps. Hoping to reel in some savings, the bill proposes making 10 million people lose Medicaid access, and 7.6 million lose health insurance entirely by 2034. It also introduces work requirements for receiving benefits, forcing recipients to show proof they work, volunteer, or are enrolled in school for at least 80 hours per month.

The proposed cuts might hit particularly hard for tipped workers, jeopardizing Medicaid access for 1.2 million restaurant and tipped workers.

Join the "What's Your Plan, Man?" Club: Time to Get Real on Our Fiscal ChallengesWith these transformative proposed changes, it's time to face the music. The bill would add trillions to the national debt and strip millions of Americans of their healthcare and food assistance. It's now up to House Republicans and the rest of Congress to consider the consequences and take action accordingly.

So, buckle up, folks! It's gonna be a wild ride as this "big, beautiful bill" makes its way through the House.

  1. The bill's proposed changes could lead to increased national debt and potential stripping of medical and food assistance for millions of Americans, according to nonpartisan analysts.
  2. The Republican-backed legislation, which includes tax cuts and deep cuts to social programs, is currently under review by the House Budget Committee.
  3. The bill's provisions include raising the standard deductions for individuals and married couples, extending the child tax credit, and introducing a new savings account for children.
  4. Seniors making less than $75,000 (single) or $150,000 (couples) can benefit from a $4,000 annual tax deduction in the bill.
  5. State and local tax (SALT) deductions have been increased from $10,000 to $30,000 in the bill, but this change could be perceived as a relief for the already wealthy.
  6. The bill eliminates taxes on tips, a provision that applies to most Americans except for non-citizens, highly compensated employees, and those earning a tipped wage. Meanwhile, the legislation also proposes $880 billion in cuts to key social programs like Medicaid and food stamps, potentially leaving millions without healthcare or food assistance.

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