Jill On Money: Trump’s mega bill winners and losers

The Trump tax and spending plan is now law At nearly pages there is plenty to absorb and even something for everyone but the bottom line is that the law is primarily a tax cut for the wealthy funded disproportionately by lower-income families Related Articles Ghost factories are a warning sign for green manufacturing s future Who will and won t benefit from the bigger SALT deduction Trump s tariff on Brazilian goods like coffee and orange juice could drive up US breakfast costs What to know and what isn t known yet about US tax deductions for tips and overtime pay I can t see this Pink concert Do I deserve a refund Here is a snap shot of winners and losers Lower-income earners lose the majority Let s start with the folks who can least afford to get squeezed The Penn Wharton Budget Model finds that the bottom percent of households those earning less than would see their income reduced by or about in Because a multitude of of these people do not pay much in federal income taxes they don t benefit from tax savings However they are likely to get hit by cuts to Medicaid the soundness insurance plan for million lower income Americans and the Supplemental Nutrition Assistance Activity SNAP formerly known as food stamps which provides food and nutrition for more than million Americans The middle class sees a mixed bag Whether or not you reap particular of the benefits of the bill depends on whether you rely on tips temporary deduction for qualified tip income regardless of itemizing status in tax years through capped at with a phase out for individuals with income greater than for Married Filing Jointly MFJ work overtime deduction capped at for individuals MFJ phases out for individuals with income greater than MFJ and ends after or own a home in a high tax state the state and local tax SALT deduction cap increases from to for taxpayers earning less than until before reverting to the cap permanently According to various models the differences net out to a push no big increase or decrease for the middle by High-income earners The biggest winners The richest Americans would receive the biggest benefit instead of losing in income like the bottom earners the top would gain The bill also permanently increases the estate tax exemption to million million MFJ beginning in tax year This rule benefits the wealthiest American families who will not pay any federal estate tax on amounts up to these levels The US fiscal outlook A loser Various analyses have revealed that the bill will cost at least trillion over the next decade To those who say that economic increase will offset these costs the numbers just do not add up According to Wharton the bill will lower GDP expansion over the next years at the same time the Senate reconciliation bill increases debt by over the next years Other selected winners Auto loan borrowers There will be a temporary deduction for qualified customer motorcycle loan interest from through with a limit of the lower of per year or of the taxpayer s AGI more than MFJ Seniors and older This group will receive a temporary through bonus deduction of per individual which phases out at a rate of of AGI over for MFJ or for all other filers Other selected losers Pupil borrowers College students and their families are facing the end of subsidized and income-driven loan repayment plans imposition of new overall limitations on participant borrowing and tightening of Pell Grant eligibility Future EV buyers The bill eliminates or substantially limits several tax credits designed to encourage stake and production of clean resource alternative fuels and electric vehicles Related Articles Sick of loud ads on Netflix A proposed California law would turn down the volume UC Santa Cruz researcher develops innovative CRISPRware system Bay Area developer building micro-studios and yes people are renting them Ghost factories are a warning sign for green manufacturing s future The EU is delaying retaliatory tariffs on US goods in hopes of reaching a deal by Aug Jill Schlesinger CFP is a CBS News business analyst A former options trader and CIO of an expenditure advisory firm she welcomes comments and questions at askjill jillonmoney com Check her website at www jillonmoney com