Trump’s Tax Bill: Who won and who lost

Business investors and wealthy Americans are among the biggest winners in President Donald Trump’s ‘Big, Beautiful’ bill. Those hit the hardest by the sweeping package include elite universities, who face new levies, and immigrants.Here’s who won and who lost in the legislative centerpiece of the president’s domestic agenda:WINNERSMultimillionairesBill includes estimated $4.5T worth of tax cuts; estate tax exemption rises to $15M for individuals--$30B for married couples; 2017 Trump income tax cuts become permanent, favoring wealthyResidents of High-Tax StatesState and local tax deduction cap raised to $40K annually for five years, then reverts to $10KSmall Business Owners2017 law that allowed 20% pass-through income deduction for sole proprietorships, LLCs, partnerships permanently extended from 2026Private EquityCarried interest tax break survives; interest expense deductions expanded for private equityDomestic Car DealersUp to $10K a year in USmade car loan interest deductible through 2028, with income-based phase-outManufacturersBonus depreciation for the cost of production upgrades and a R&D tax break made permanentFossil Fuel ProducersIndustries win tax breaks and new requirements to open up more federal land for drilling; clean energy breaks phased outElderly and Tipped WorkersLarger standard deduction for seniors; tips and overtime pay exempted from income taxes. Provisions include limits to shrink cost and expire after 2028ParentsMax child tax credit rises by $200 starting 2025, permanently indexed to inflation; “Trump accounts” for newborns seeded with $1,000 through 2028TelecommunicationsLarge swaths of spectrum auctioned, benefiting the likes of Starlink as well as 5G and future 6G network developmentCorporationsProposed tax hikes that would have hit big business largely rejectedDefence Contractors$150B boost to defence spending, funding new weapons systems and military contractsSpaceNearly $10B in funding for Moon, Mars missions, and ISS decommissioningLOSERSLow-Income AmericansCuts to Medicaid and food stamps; new work requirements for some Medicaid recipients and cost-sharing imposedRenewable EnergyClean energy industries hit; a tax credit for solar panels and wind systems is quickly phased out; efficiency and home installation credits eliminated by year-endGamblersOnly 90% of gambling losses deductible, possibly creating taxes on net lossesTechnology CompaniesStates retain power to regulate AI, a setback for large tech firms and investors.Immigrants1% tax on remittances; some lose access to health coverage tax creditsElite UniversitiesEndowment income tax climbs to 8% for top private colleges with large fundsElectric Vehicle Makers$7,500 consumer tax credit for buying EVs eliminated, hitting the likes of Tesla and GM

from Economic Times https://ift.tt/NQwPRi8