Article Summary
President Donald Trump is attempting to make sweeping changes to the tax code once again, with the “big, beautiful” tax bill proposed by House Republicans. This bill, if passed, would impact various aspects of Americans’ personal finances and deliver on many of Trump’s economic promises. The bill includes extending significant income tax cuts, increasing the child tax credit, and temporarily expanding the standard deduction. However, these changes would add $3.8 trillion to the deficit from 2025 to 2034, according to the Joint Committee on Taxation.
What This Means for You
- Practical implication #1: Trump’s tax bill could lead to significant changes in your personal finances, including lower taxes and increased deductions.
- Implication #2 with actionable advice: Start planning now for the potential impact on your tax bill and consider consulting a tax professional to prepare for these changes.
- Implication #3 with actionable advice: Keep an eye on the progress of the bill and be prepared for adjustments to your financial plans as the bill evolves.
- Future outlook or warning: While the bill could offer significant benefits, it would also add significantly to the deficit, which could have long-term implications for the economy.
Original Post
President Donald Trump made sweeping changes to the tax code during his first term. Now, he’s trying to do it again. House Republicans are working on a “big, beautiful” bill that would deliver on many of Trump’s economic promises and impact various aspects of Americans’ personal finances. This is the first major legislative package for the GOP-controlled 119th Congress, and the latest 389-page version of the tax bill offers a look at where things are headed.
Republican officials previously floated a goal of passing the bill by Memorial Day; now, House officials are aiming to score both chambers’ approval by July 4. But Congress has a lot of work to do, and the actual timing is uncertain with key challenges still ahead. The bill is far from final, and it’s all but certain to evolve as members work toward consensus and navigate the party’s thin margin in the House.
Some of Trump’s priorities, like eliminating taxes on tips and overtime hours, were popular among the electorate but could be difficult to pass if revenue isn’t made up elsewhere. The current version of the bill would also extend significant income tax cuts, increase the child tax credit and temporarily expand the standard deduction.
That’s costly: An estimate from the Joint Committee on Taxation found it would add $3.8 trillion to the deficit from 2025 to 2034.
Other policies the president has called for, like ending taxes on Social Security benefits and increasing the top tax rate for millionaires, have yet to make it into the legislation but could theoretically be added in the coming weeks.
Keeping in mind that the bill will see several adjustments, here are the key tax changes in the latest version of “The One, Big, Beautiful Bill,” which the House Ways and Means Committee advanced Tuesday. The bill…
Key Terms
- Tax Reform
- Trump Tax Bill
- Tax Cuts
- Joint Committee on Taxation
- Standard Deduction
ORIGINAL SOURCE:
Source link
