Category Taxes & Tools

H.R. 1 Tax Reform: Empowering Businesses, Easing Burdens

On May 22, 2025, the U.S. House of Representatives passed a significant tax reform bill known as H.R. 1, or the "One Big Beautiful Bill." This bill focuses on several important changes affecting taxes for both individuals and businesses. For example, it permanently extends and expands a tax deduction known as the Qualified Business Income (QBI) deduction, helping small business owners keep more of their earnings. It also significantly raises the estate and gift tax exemption to $15 million beginning in 2026, which means fewer people will have to pay taxes when inheriting money or property. Additionally, the bill raises the maximum amount taxpayers can deduct for state and local taxes (SALT) to $40,000 in 2025, with further increases through 2033. Supporters of the bill believe it will boost the economy by helping businesses succeed and benefiting individuals, particularly those living in states with high taxes. However, critics worry it will worsen the federal deficit, meaning the government might spend more money than it collects through taxes.

Tax Break Boost or Budget Bust? Congress Debates “One Big Beautiful Bill”

In May 2025, Congress is considering a major bill called the "One Big Beautiful Bill," which aims to permanently continue the tax cuts from 2017, known as the Tax Cuts and Jobs Act (TCJA). The bill offers new perks, such as removing taxes on tips, overtime pay, and interest on car loans, while increasing the SALT (state and local tax) deduction limit to $40,000 for higher-income taxpayers. Supporters argue these changes provide financial relief to working families, especially as many Americans face rising costs due to inflation. However, critics worry the bill could add significantly to the national deficit and mainly benefit wealthier taxpayers. With its narrow passage in the House and ongoing debates, the bill's future in the Senate remains uncertain.

Trump Tax Plan 2025: Big Cuts, Bold Benefits, Bright Future

On May 28, 2025, the U.S. House of Representatives passed the Trump Tax Plan 2025, also known as the "One Big Beautiful Bill Act." This major bill, priced at roughly $3.8 trillion, aims to permanently extend the 2017 tax cuts and provide significant financial changes for Americans. Among its key features are a higher child tax credit, giving families $2,500 per child until 2028, and an increased estate tax exemption up to $15 million, adjusted yearly for inflation. The bill also offers more generous deductions for single and joint tax filers while making overtime pay and tip earnings tax-free to support industry workers. Additionally, it provides extra help for elderly taxpayers with low incomes. Supporters argue these measures will help families and workers financially, while critics voice concerns about potential effects on government funding. The bill now heads to the Senate for debate and voting.

Biden’s Tax Shift: Tariffs In, Income Taxes Out?

The Biden administration's proposal to eliminate federal income taxes for Americans earning under $150,000 annually, shifting instead to tariffs on foreign goods, represents a major possible change in the U.S. tax system. Supporters argue this shift could significantly ease the tax burden for middle-class families who currently struggle with rising living costs and wage stagnation. Commerce Secretary Howard Lutnick emphasized that historically, the United States relied on tariff revenues rather than income taxes. However, critics worry that introducing higher tariffs might lead to increased consumer prices or strained international trade relationships. The proposal remains under discussion as policymakers weigh the potential benefits against possible drawbacks, with economists closely debating its long-term economic impacts.

Tax Time Bomb: How TCJA’s Expiration Could Impact Your Retirement

Perhaps most concerning for retirees and those nearing retirement is that the expiration of the Tax Cuts and Jobs Act (TCJA) at the end of 2025 will cause taxes to rise significantly. This means that current tax brackets, which range between 10% to 37%, will shift back to the former, higher rates of up to 39.6%. Middle-income retirees will feel this impact most, as the 12% tax bracket increases to 15% and the 22% bracket jumps to 25%. Many retirees will need to prepare carefully, as paying higher taxes could mean adjusting retirement budgets or reevaluating retirement income strategies to make sure they can still comfortably meet their financial goals.

House Passes “One Big Beautiful Bill,” Boosting Tax Relief and SALT Cap

The House of Representatives recently approved the "One Big Beautiful Bill Act," a proposal designed to extend key aspects of the 2017 Tax Cuts and Jobs Act (TCJA) beyond their original 2025 expiration. The bill aims to keep current income tax rates and maintain a higher standard deduction, which lowers taxable incomes for many families. Additionally, it permanently removes certain miscellaneous tax deductions, such as fees paid for investment advisors. One major change included in the bill is raising the limit on the State and Local Tax (SALT) deduction from the current $10,000 to $40,000 in 2025. This adjustment could significantly affect taxpayers living in states with high income or property taxes. The bill now moves to the Senate, where it may undergo considerable revisions before becoming law.

Trending now

Budgeting and Saving
Debt Management
Side hustle ideas to boost income
Investing basics for beginners