Posted on 07/04/2025 10:51:22 AM PDT by Be Careful
There has been so much flying around and changing moment-to-moment, that I am unable to track some of the major items in the House bill that Trump will sign. I cannot find an EXTENSIVE punch list or bullet point summary, especially one that includes the status of PBS/NPR.........Has anyone seen an up-to-date source document that summarizes the important line items that was passed yesterday, beyond the few that are identified in headlines??
$6,000 deduction for over 65. $12,000 deduction for both
This was in liu of No Tax on Social Security
Phaseout over $150 K income
$12,000 exclusion for Overtime Pay
$25,000 exclusion on Tip Income...
increasing the state and local tax (SALT) deduction cap to $40,000 for certain earners, and providing tax relief for families through an increased child tax credit.
Tax Provision
SALT Deduction Increases the cap on state and local tax deductions from $10,000 to $40,000 for incomes under $500,000.
Child Tax Credit Permanently raises the child tax credit to $2,200 per child, benefiting over 40 million families.
Qualified Small Business Stock Raises the threshold for qualifying small businesses from $50 million to $75 million, increasing capital gains tax exclusions.
Estate and Gift Tax Increases the estate and gift tax exemption to $15 million for individuals, indexed for inflation.
No Tax on Tips and Overtime Exempts tips and overtime pay from federal income taxes, fulfilling campaign promises.
Impact on Different Income Levels
Income Level Expected Benefit
High Earners ($1 million+) Average after-tax income increase of about $75,000 in 2026, with a 3% boost in after-tax income.
Middle-Class Families (<$100,000) Up to $10,900 in additional take-home pay, with a 12% tax cut compared to current rates.
Additional Provisions
Tax Relief for Seniors: Includes specific tax breaks aimed at older adults.
Business Tax Incentives: Restores immediate expensing for R&D and other business investments.
These provisions are designed to stimulate economic growth while providing substantial tax relief to various groups, particularly the wealthy and small business owners.
70 pages of *All work and no play make Jack a very dull boy”
Here is a comprehensive summary. Just use the Senate version.
PBS/NPR is in the rescission package.....NOT part of the bill. The House has passed it. Senate...checking on it. Only needs simple majority.
The Senate bill provision increases the
charitable deduction for individuals who
do not elect to itemize to $1,000 for
single filers and $2,000 for married joint
filers.
The Senate bill would create a 0.5%
floor for the deductibility of charitable
contributions by individuals who elect to
itemize. This section would modify Section 170(b) to provide that any charitable contribution made by an
itemizer is deductible only if the
contribution exceeds 0.5% of the
individual’s contribution base for the
taxable year.
The Senate bill would establish a 1%
floor for the deductibility of corporate
charitable contributions. This section
would modify Section 170(b)(2)(A) to
provide that any charitable contribution
made by a corporation is deductible
only if the contribution exceeds 1% and
is not greater than 10% of the
corporation’s taxable income.
College Endowment Excise Tax (§ 4968)
The Senate bill provision significantly
reduces the endowment excise tax rates
on colleges and universities proposed in
the House, and the tax would only apply
to institutions with more than 3,000
students. The bill removed the definition
of “eligible student” found in the House
bill for purposes of calculating the student-adjusted endowment and it removes the exemption for qualified
religious institutions.
Endowment Excise Tax Rate
$500,000–$750,000 1.4%
$750,000– $2,000,000 4%
$2,000,000+ 8%
The bill also includes a provision to increase the federal government’s current $36.1 trillion statutory debt limit by $5 trillion.
Here is a PDF summary by PWC:
Proposed modifications include an additional year of inflation adjustments for the 10% and 12% tax brackets and an increase in the standard deduction for tax years
beginning after 2025 to $15,750 for a single filer, $23,625 for a head of household, and $31,500 for
married individuals filing jointly and adjusted for inflation thereafter.
Additional modifications of current TCJA individual provisions include permanently increasing the
nonrefundable child tax credit from $2,000 per child to $2,200 per child beginning in tax year 2025 and
permanently indexing the nonrefundable credit amount for inflation.
While providing a charitable deduction of up to $1,000 for single filers who do not itemize ($2,000 for
joint filers), the Senate-passed bill would add a new 0.5% floor on charitable contribution deductions for
individuals who elect to itemize, effective for tax years beginning after December 31, 2025
The Senate-passed bill includes several new individual tax relief provisions that address proposals
offered by President Trump, including:
• A deduction on certain qualified tip income of up to $25,000 received by an individual in an
occupation that customarily and regularly receives tips in a given tax year, effective for tax years
2025 through 2028.
• A deduction for certain qualified overtime compensation of up to $12,500 ($25,000 in the case of
a joint return) received by an individual during a given tax year, effective for tax years 2025
through 2028.
Observation: Industries that are labor intensive, such as retail, restaurants, and hospitality, should
consider the impact on administration and on their workforce strategy of the federal income tax
deduction for tips and overtime compensation.
A deduction of up to $10,000 for certain qualified passenger vehicle loan interest during a given
tax year, effective for tax years 2025 through 2028.
• New Trump savings account for eligible individuals under the age of eighteen for whom a social
security number has been issued. For US citizens born between January 1, 2024, and December
31, 2028, the federal government would contribute $1,000 per child to every eligible account.
Taxable entities may contribute up to $5,000 annually of after-tax dollars to a Trump account,
indexed for inflation. Certain contributions to Trump accounts from tax-exempt sources are not
subject to the $5,000 annual limit.
They should have thought about that before they allowed PBS to become a woke propaganda machine.
The Tax Foundation has an extensive anaylis of the bill
https://taxfoundation.org/research/all/federal/big-beautiful-bill-senate-gop-tax-plan/
But it does not look at the non tax related items like the Rescission of several programs (several environmental and highway building programs).
This from the Committee for a Responsible Federal Budget has a detailed breakdown of all of the parts of the bill as 06/23/2025.
https://www.crfb.org/blogs/breaking-down-one-big-beautiful-bill
If you click on the Ways in Means at the top of the chart, it will take you an excel spreadsheet you can download.
It seems to be missing parts of the bill and the spreadsheet does not match the bill. Title numbers specifically.
I am immensely proud of our President. He does not pretend to be emperor or miracle worker. Who has ever done better, kept more promises in the 1st few months of his term?
That has been mentioned before and MAGA pushed back so it vanished. MAGA must push back again. I am hitting that pedal with both feet.
The bill passed the House (215-214, May 22, 2025) and Senate (51-50, July 1, 2025) with amendments, and the House agreed to the Senate amendment on July 3, 2025.
It awaits presidential signature.
For the full text, see Full Text of Final Big Beautiful Bill (I think, per Grok)
Be careful with this article. It is not a balanced summation. It swallows CBO hook line & sinker. Also I’m very leery of the repeated statement that lowest income Americans will pay more. Most of the articles purporting to explain the OBBB are written by leftist sources who want to discredit POTUS.
As of June 4, 2025, approximately 40% of U.S. households are expected to pay no federal individual income tax, according to the latest Tax Policy Center estimates.
With that in mind what does “lowest” mean?
According to Ways & Means:
In addition to stopping a $1,700 tax increase later this year, the average American family of four making less than $100,000 receives an additional $600 in tax cuts as compared to today.
Working families making between $15,000 and $30,000 will have their taxes cut by 21% –
the largest of any income group.
As a result of The One, Big, Beautiful Bill, the top 1% will pay MORE in federal taxes than they did before TCJA – over 40% of all federal taxes.
As a result of The One, Big, Beautiful Bill, the top 10% of earners’ of federal taxes will INCREASE by 6.6% compared to what they paid before TCJA.
This is not a complete list. Has business related items but is missing the personal items like Child Tax Credit and Standard Deduction changes.
The BBB has been passed. Now the representatives can get busy with revisions which don’t need 60 votes to pass. It’s going to be a great 3 and 1/2 years.
Agreed totally! He’s clearly a Manhattan Dem or at most RINO at heart—and needs to hear from us!
It would be nice to have the strategy explained better. It’s a frustrating process between authorization and appropriation (the BBB being the former). So recessions are supposed to fit in where into the process? Are they a mod to authorization or a for of appropriation ? And the does the path we are on get on back to where congress approves a budget or will we still have the problem of continuing resolutions but at a different level of spending (presumably lower) now?
I googleg my own question and I got this reply :
A budget rescission is the cancellation of previously approved government funding. It’s a process where the President can propose to Congress to eliminate previously allocated funds for specific programs before they are spent. Congress then has to approve the rescission for it to take effect.
Here’s a more detailed explanation:
Previously Appropriated Funds:
Rescissions involve money that has already been approved by Congress through the appropriations process, but has not yet been spent by the government.
Presidential Proposal:
The President can propose rescissions to Congress, essentially asking them to cancel the spending of those funds.
Congressional Action:
Congress must then act on the President’s proposal. They can either approve the rescission, effectively canceling the funding, or they can reject it, meaning the money will remain available for spending as originally intended.
Impoundment Control Act:
The Impoundment Control Act of 1974 provides the legal framework for the President’s rescission authority.
Purpose:
Rescissions can be used to reduce the overall budget deficit, redirect spending to other priorities, or signal a change in policy direction.
We were told Social Security would not be taxed! We have paid tax on it once already, guess seniors did not have enough clout!
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