In the interest of avoiding "spin" on this thing from either side, I ran across this really insightful piece breaking down the "good" the "bad" and the "ugly" on Trump's big beautiful bill. Many of us on here have said it's not perfect, this piece spells out in some detail why not?
The Good, the Bad, and the Ugly in the One, Big, Beautiful Bill
A few excerpts:
the "good"
Most of the good tax policy aligns with Tax Foundation’s principle of stability. It permanently extends the rates and brackets of the 2017 individual tax cuts. This provides certainty for households and stability to this portion of the tax code. The bill permanently extends the larger standard deduction and the alternative minimum tax threshold that were only temporary in the TCJA. These two provisions have greatly simplified the tax code for millions of taxpayers.
the "bad"
It introduces tax exemptions for overtime pay and tips, as well as a deduction for auto loan interest and a new additional standard deduction available for all seniors, all of which violate basic tax principles of treating taxpayers equally. Combined, these four provisions cost about $300 billion over the four years they are in effect, and if eventually extended beyond that date, the cost would more than double over the next decade
* editor's note (I'd argue these tax cuts aren't "bad" but they lay out why inside the piece)
...more "bad"
lawmakers introduced a 20 percent deduction for business income that is taxed on the individual rate schedule and not at the corporate tax rate of 21 percent. Taxes on dividends and capital gains are a second layer of tax on corporate income. The non-corporate businesses (also known as “pass-throughs”) face a few changes in this bill, but the main change is that the deduction is made permanent and increased to 23 percent, which costs more than $700 billion over the next decade ($800 billion according to the Joint Committee on Taxation). This will further decrease the effective tax rates that pass-throughs face on their income relative to corporate profits, making the tax code less neutral with respect to business.
Now for the "ugly"
The bill further complicates the tax code in several ways, sending taxpayers through a maze of new rules and compliance costs that in many cases probably outweigh any potential tax benefits. No tax on tips, overtime, and car loans comes with various conditions and guard rails that, if enacted, will likely require hundreds of pages of IRS guidance to interpret. The changes to the IRA credits, while commendable in many ways, keep in place some of the most complicated rules, e.g., bonus credits for meeting prevailing wage and apprenticeship requirements, and add new “foreign entity of concern” restrictions that may make many of the credits cost prohibitive.
As I said, it's a really insightful piece, and if nothing else proves to me at least, we ultimately need to scrap the tax code because trying to comply with all of its rules, restrictions, and regulations ends up costing us more than it ever produces! I still think on balance as a matter of simple practicality, it's always better to let hard working Americans keep more of what they earn and this bill at least does that, just not enough of it unfortunately!
I personally wish it were more consistent about that, and even more aggressive eliminating our deficits which is the back door to these blood sucking politicians always complaining how they just can't allow us to keep more of our hard earned money.
Their insatiable appetites for more and more spending is honestly nauseating.
The Good, the Bad, and the Ugly in the One, Big, Beautiful Bill
A few excerpts:
the "good"
Most of the good tax policy aligns with Tax Foundation’s principle of stability. It permanently extends the rates and brackets of the 2017 individual tax cuts. This provides certainty for households and stability to this portion of the tax code. The bill permanently extends the larger standard deduction and the alternative minimum tax threshold that were only temporary in the TCJA. These two provisions have greatly simplified the tax code for millions of taxpayers.
the "bad"
It introduces tax exemptions for overtime pay and tips, as well as a deduction for auto loan interest and a new additional standard deduction available for all seniors, all of which violate basic tax principles of treating taxpayers equally. Combined, these four provisions cost about $300 billion over the four years they are in effect, and if eventually extended beyond that date, the cost would more than double over the next decade
* editor's note (I'd argue these tax cuts aren't "bad" but they lay out why inside the piece)
...more "bad"
lawmakers introduced a 20 percent deduction for business income that is taxed on the individual rate schedule and not at the corporate tax rate of 21 percent. Taxes on dividends and capital gains are a second layer of tax on corporate income. The non-corporate businesses (also known as “pass-throughs”) face a few changes in this bill, but the main change is that the deduction is made permanent and increased to 23 percent, which costs more than $700 billion over the next decade ($800 billion according to the Joint Committee on Taxation). This will further decrease the effective tax rates that pass-throughs face on their income relative to corporate profits, making the tax code less neutral with respect to business.
Now for the "ugly"
The bill further complicates the tax code in several ways, sending taxpayers through a maze of new rules and compliance costs that in many cases probably outweigh any potential tax benefits. No tax on tips, overtime, and car loans comes with various conditions and guard rails that, if enacted, will likely require hundreds of pages of IRS guidance to interpret. The changes to the IRA credits, while commendable in many ways, keep in place some of the most complicated rules, e.g., bonus credits for meeting prevailing wage and apprenticeship requirements, and add new “foreign entity of concern” restrictions that may make many of the credits cost prohibitive.
As I said, it's a really insightful piece, and if nothing else proves to me at least, we ultimately need to scrap the tax code because trying to comply with all of its rules, restrictions, and regulations ends up costing us more than it ever produces! I still think on balance as a matter of simple practicality, it's always better to let hard working Americans keep more of what they earn and this bill at least does that, just not enough of it unfortunately!
I personally wish it were more consistent about that, and even more aggressive eliminating our deficits which is the back door to these blood sucking politicians always complaining how they just can't allow us to keep more of our hard earned money.
Their insatiable appetites for more and more spending is honestly nauseating.
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