The Daily Money: Will Trump tax bill help or hurt you?
President Donald Trump's tax bill could make future generations "worse off," no matter their income, according to a new report from the Penn Wharton Budget Model.
Like prior analyses, these findings suggest most Americans would see tax cuts in the short run, just as Trump and fellow Republicans have advertised. Long-term, though, most people end up in the red. Here's the math.
Should church group return Target donation?
Target has donated $300,000 to the National Baptist Convention. Now, some critics are calling on the church organization to return the gift.
The calls come from activists who launched a boycott against Target over its rollback of DEI efforts.
Will the donation be returned?
Trump attacks Fed chair again on interest rates
In his stinging monthslong campaign to badger Federal Reserve Chair Jerome Powell into lowering interest rates, President Trump has relied on a variety of arguments.
Most recently, he has cited a claim that the Fed's refusal to slash rates is costing the federal government hundreds of billions of dollars a year in interest payments on its debt.
Is Trump right?
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About The Daily Money
Each weekday, The Daily Money delivers the best consumer and financial news from USA TODAY, breaking down complex events, providing the TLDR version, and explaining how everything from Fed rate changes to bankruptcies impacts you.
Daniel de Visé covers personal finance for USA Today.
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Business Insider
21 minutes ago
- Business Insider
Anduril CEO Palmer Luckey's new digital banking startup set to be valued at $2 billion, sources say
Anduril cofounder and CEO Palmer Luckey is launching another startup with a "Lord of the Rings"-inspired name. It already has a hefty price tag. Erebor, a digital bank aimed at startups and cryptocurrency companies, which might sound a little like the infamous Silicon Valley Bank, is raising at least $225 million at a $2 billion valuation, according to people familiar with the deal. Founders Fund, the venture firm run by Palantir cofounder Peter Thiel, and 8VC, led by fellow Palantir cofounder Joe Lonsdale, are investing in the company, the people who weren't authorized to speak publicly on the matter said. The fundraise is ongoing, and details could still change. 8VC, Founders Fund and Palmer Luckey did not respond to requests for comment. Erebor — like Luckey's Anduril as well as Lonsdale and Thiel's Palantir — takes its name from JRR Tolkien's "The Lord of the Rings." In the book, Erebor is the "Lonely Mountain," a kingdom known for its treasure. The startup recently applied for a US bank charter that would let it operate as a regulated bank. It plans to provide services such as crypto-collateralized lending to startups and crypto clients, according to documents viewed by Business Insider. Luckey founded Erebor. Jacob Hirshman, who previously worked at stablecoin issuer Circle, and Owen Rapaport, who cofounded now-acquired crypto-monitoring company Aer Compliance, will lead the bank as co-CEOs, the documents said. Mike Hagedorn, previously senior executive vice president and chief financial officer of Valley National Bank, will be the startup's president, according to his LinkedIn. Hirshman declined to comment. Rapaport and Hagedorn did not respond to requests for comment. Luckey is also the CEO of Anduril Industries, a defense tech giant he cofounded in 2017 that raised $2.5 billion at a $30.5 billion valuation in June. He also founded virtual reality company Oculus in 2012 at 19 years old and sold it to Facebook, now Meta Platforms, for $2 billion two years later. In 2016, Luckey was fired from Meta after donating $10,000 to a pro-Donald Trump meme group. (Meta and CEO Mark Zuckerberg have denied that Luckey left over his politics, and the two teamed up again in May, announcing an Anduril-Meta US military partnership.) Both Lonsdale and Thiel — who lead the venture firms backing Erebor — have supported President Trump. Thiel contributed over $1 million to pro-Trump super PACs and his 2016 campaign, according to the New York Times. Lonsdale has backed the America PAC, which supported Trump's 2024 reelection campaign, the Financial Times reported. In the first few months of his second term, Trump made moves to support the crypto industry, like creating a strategic bitcoin reserve and appointing venture capitalist David Sacks as Crypto Czar. And Wall Street interest in crypto is on the rise after Circle's IPO in June. Shares in Circle are up over 113% since its public market debut as of the Wednesday close.
Buzz Feed
21 minutes ago
- Buzz Feed
17 Things You Can Buy For $1 Billion In The US
It's so hard to conceptualize how much $1 billion actually is. For example, Elon Musk is so rich that spending $1 billion to him is equivalent to the average American spending only $300. That's like me buying a year's worth of Premium Netflix, meanwhile Elon could buy a year's worth for all 3.2 million people in Puerto Rico. And he'd still have money left over! You can check out the net worth of every single billionaire here. As of just a few months ago, there were 902 reported billionaires in the US alone. However, 34% of all Americans are living paycheck to paycheck. So, as Donald Trump's "Big Beautiful Bill" becomes one step closer to being passed into law – in which the rich will receive massive tax cuts, yet nearly 17 million people will lose their health insurance altogether — I wanted to break down exactly what you could buy with $1 billion. Throughout the US, the average person spends $1,635 per month on rent. If you had $1 billion dollars, that would cover your rent for the next 50,968 years. Oh, wait, you wanna live in New York City instead? Well, the average rent there is $4,019 per month. Your $1 billion would still last you an impressive 20,734 years though, assuming you haven't run into greedy landlords. Your $1 billion could also buy every single person in Japan, Germany, France, Sweden, Palestine, Ghana, Spain, Poland, Australia, South Africa, and Brazil a burrito from Taco Bell. And you'd still have another 5.3 million burritos left over! Not too shabby, considering you started with over 671 million burritos. Heck, maybe you want to end poverty in general! You could totally wipe it out statewide in Alaska, Vermont, and you'd still have about $120 million to spare. Perhaps you're a sucker for all things fashion. With $1 billion, you could buy 78,740 Birkin bags. That's enough to give two bags to every single person who lives in Monaco. To be more specific, these would be the Birkin 25 in Togo leather (not pictured), which cost $12,700 each. Or maybe running is more your speed. Nike's Streakfly 2 running shoes retail for $190, but with your $1 billion you could buy 5,263,157 pairs. That's nearly enough to give every single resident of Ireland or New Zealand their own pair of shoes. Jeff Bezos just spent an estimated $50 million on his star-studded wedding in Italy. That may seem like a lot (because it is!), but to him, it's the equivalent of spending only $41.23 in comparison to the median American. After all, his total net worth $233.9 billion. If you had just $1 billion and wanted to recreate his wedding extravaganza – which included performances from Usher, among others – you could do so every single week for the next 5 months. Maybe music is your passion, and you want a private concert from Beyoncé. Two years ago, she was paid $24 million to put on a private show in Dubai, which is the most expensive private performance ever recorded. You could spend $1 billion on 41 private Beyoncé concerts and still have $16,000 left over. Or perhaps Bruno Mars is more your style. You could get 312 private concerts from him instead, which would equal one concert every month for the next 26 years. After all, Bruno's rate is about $3.2 million per private show. Are you into cars? You could buy the new Porsche 718 Boxster with your $1 billion. And then you could buy a bunch more to hand out to your closest 13,350 friends. Perhaps you live in Vatican City and want to give them to every other resident of the country. That means each person would receive 15 entire Porches. I hope they have enough space in their garage. Maybe you were disappointed in how the eighth and final season of Game of Thrones ended. Each of those episodes cost $15 million to make, so you could redo all six of them annnnnyyyyy way you'd like 11 times and still have some change left over. And maybe then you'll actually be able to get it right! The average hospital bill for delivering a baby in the US (without complications) is $19,000. With your $1 billion, you could front the bill for 52,631 new kids. That's only three thousand people less than the entire population of Greenland. Lord knows we need as many Mamma Mia! movies as possible. The first one had a budget of $52 million, so you could spend your $1 billion to create 19 new films and still have $12 million left over for Meryl Streep's signing bonus. The average in-state college student spends $9,750 per year on tuition at a public university. Your $1 billion could pay off all four years of school for well over 25,000 students. Let's say you wanted to give away all of your money to charity at the rate of $1 per second. It'll take you just over 16 minutes to give away $1,000. If you kept going, it'll take you just over 11.5 days to give away $1 million. But, hey, you're a billionaire, so it'll take you over 31.7 years to give away all $1 billion. Let's say you're feeling generous and want to order breakfast, lunch, and dinner from the McDonald's Dollar Menu for every single person who lives in Rhode Island. You'd be able to feed everyone (over 1 million people!) for the next 299 days. Finally, the average yearly salary in the US is projected to be about $68,000 this year. Elon Musk makes that much money every 2 minutes and 59 seconds. If the average salary never changed, you'd have to work for the next 14,705 years to earn $1 billion. If Elon wanted another billion dollars, he'd simply have to work 30 days, 9 hours, 54 minutes, and 49 seconds. By that point, the average US citizen would have only made $5,667. Billionaires shouldn't exist!!!!! Bye!!!!!
CNBC
21 minutes ago
- CNBC
Here's what powered the stock market higher during its short and sweet record week
Short and sweet: That was this week's stock market in a nutshell. The second half of the year kicked off in record style, with both the S & P 500 and the Nasdaq closing at multiple all-time highs, including in Thursday's holiday-shortened session. The U.S. stock market is closed on Friday for the Fourth of July. Extending its stunning comeback from its April sell-off, Club stock Nvidia broke all kinds of records this week as its market value topped $3.9 trillion on Thursday. It ended the day up 1.3% at $159.34 a share, good for a $3.89 trillion market cap. To fully appreciate the current bullishness on Wall Street, we have to look back on the volatile second quarter in the market, which ended Monday. Considering the Nasdaq lost over 12% in the first week of the quarter on President Donald Trump's "reciprocal" tariff announcement, it was incredible to see the tech-heavy index close out the April-to-June period with a 17.75% gain. That was the Nasdaq's best quarterly performance since the early days of Covid, when it gained over 30% in the second quarter of 2020, as the Federal Reserve cut interest rates to zero and pumped money into the economy to prevent economic Armageddon from the pandemic. The S & P 500, meanwhile, advanced 10.57% in this year's second quarter, recovering from a greater-than-11% decline in the first week of April. The board market index saw its best quarter since Q4 of 2023, when it gained 11.24%. Eight out of the 11 sectors advanced in the April-to-June period, with technology leading the way with 23.5% gain. The worst performing sector was energy, which lost 9.37% in Q2, its worst quarter since Q3 of 2020. The bulk of the losses in energy came in the waning days of the second quarter when oil prices tanked following the U.S. bombing of three Iranian nuclear sites. The market deemed the U.S. involvement in the Israel-Iran conflict as a non-systemic risk and West Texas Intermediate crude sank nearly 9% for the quarter. In the absence of any major headlines out of the Mideast and Trump's Wednesday announcement of a framework for a trade deal with Vietnam, the S & P 500 and Nasdaq each advanced for the week, up 1.7% and 1.6%, respectively. Capitol Hill is on the precipice of delivering the president a major legislative victory, with the final passage of the "big, beautiful bill" of spending priorities and tax cuts expected soon after clearing a key procedural vote in the House . Ironically, a strong jobs report Thursday cut both ways for the president. On the one hand, more hiring and a lower unemployment rate shows the resiliency of the economy in the face of the tariff and geopolitical uncertainty. That was a win for Trump. But on the other hand, strength in the economy weakens the president's argument for immediate Federal Reserve interest rates cuts. In fact, on the eve of the government's June employment report and following a much weaker-than-expected ADP private-sector jobs reading, the president posted on social media that Fed Chairman Jerome Powell should resign. Trump was quiet on the rate front on Thursday. That's because payrolls for last month grew by 147,000, much more than the Dow Jones estimate for 110,000. The nation's unemployment rate in June dipped to 4.1% when a slight uptick to 4.3% had been expected. To be sure, much of that unemployment rate decline can be attributed to fewer people working or looking for jobs. Average hourly earnings for last month increased by a less-than-expected 3.7% versus the year0ago period and were below the 3.8% gain seen in May. This week, we got positive updates from the banks, which were free to update capital allocation plans following the conclusion of the Fed's stress tests. Club holdings Goldman Sachs and Wells Fargo were the two standout winners this year, and both of them increased their dividends . Goldman hiked its quarterly payout by 33% to $4 per share. Wells Fargo boosted its dividend 12.5% to 45 cents per share. For Wells, the stress test was just one more bit of good news since the 2018 Fed-imposed $1.95 trillion asset cap was lifted early last month. Another positive update within the portfolio came Monday when Jim Cramer interviewed Amazon CEO Andy Jassy on "Mad Money." In the wide-ranging interview, Jassy clearly laid out the massive opportunity he sees in artificial intelligence, as well its long-term bets such as its Project Kuiper satellite internet service. Jim is optimistic that Kuiper could eventually help Amazon's Prime program add more members. The interview came ahead of the company's first-ever four-day Prime Day, which kicks off Tuesday and goes to Friday. Over at Meta Platforms, we learned more about CEO Mark Zuckerberg's "superintelligence" ambitions, as he authored a memo to employees explaining the new internal structure for AI research at the company. As we wrote in an analysis piece Tuesday, Zuckerberg's costly push to hire the best and brightest AI minds hasn't cost Meta stock yet because investors believe the payoff will be worth it. Home Depot , meanwhile, announced that Monday that it would acquire GMS, a building materials distributor that specializes in products such as drywall, steel studs and insulation. Including debt, the deal gives GMS an enterprise valuation of $5.5 billion. While we understand Home Depot's desire to push further into the world of professional contractors — building on last year's pricey takeover of SRS Distribution — Jim said he wishes the money spent on GMS was instead spent repurchasing stock because he believes Home Depot shares are considerably undervalued. Finally, the S & P Short Range Oscillator ended Thursday's session even further into overbought territory at 8.25% (the threshold to determine overbought or oversold conditions is plus or minus 4%, respectively). While markets can stay overbought for a while, we like to look for areas to raise cash when we reach these levels as they indicate a near-term pullback is increasingly likely. (Jim Cramer's Charitable Trust is long NVDA, AMZN, META and HD. See here for a full list of the stocks.) As a subscriber to the CNBC Investing Club with Jim Cramer, you will receive a trade alert before Jim makes a trade. Jim waits 45 minutes after sending a trade alert before buying or selling a stock in his charitable trust's portfolio. If Jim has talked about a stock on CNBC TV, he waits 72 hours after issuing the trade alert before executing the trade. THE ABOVE INVESTING CLUB INFORMATION IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY , TOGETHER WITH OUR DISCLAIMER . NO FIDUCIARY OBLIGATION OR DUTY EXISTS, OR IS CREATED, BY VIRTUE OF YOUR RECEIPT OF ANY INFORMATION PROVIDED IN CONNECTION WITH THE INVESTING CLUB. NO SPECIFIC OUTCOME OR PROFIT IS GUARANTEED.
