Where in US will Indian-Americans save big with Trump's new law

India Today

3 days ago

US President Donald Trump's One Big, Beautiful Bill Act, signed into law on July 4, is projected to bring significant financial savings for Americans through tax cuts and wage-related provisions. Among those likely to benefit meaningfully are 5.2 million Indian Americans, one of the fastest-growing and most economically influential immigrant communities in the country.The White House said the bill will boost real wages, increase take-home pay, and offer tax exemptions on overtime, tips, and Social Security income.advertisementThe Trump administration on Tuesday released an interactive map outlining projected state-by-state savings, with data on income gains, tax relief, and job protection tailored to each state's population, compared to if the bill had not been passed and signed into law.
Notably, real wages refer to the income a person earns after adjusting for inflation, reflecting their actual purchasing power.California tops the chart for real wage gains, with inflation-adjusted increases ranging from $4,900 to $8,800 over the next 4 years, followed by Washington, where projected gains fall between $4,700 and $8,400.The announcement by the White House comes even as there is rising public discontent over the law, with tens of thousands expected to participate in coordinated "Good Trouble Lives On" protests across 1,600 locations, opposing the administration's positions on immigration, women's rights, healthcare, and civil liberties.For Indian Americans, the bill's long-term impact is of particular interest.It must be noted that Indian Americans represent 21% of the total Asian American population and are among the highest-earning demographic groups in the country, according to a Pew Research Centre report published on May 1.In 2023, Indian-headed households recorded a median income of $151,200, with immigrant-led households earning an even higher median of $156,000, compared to $120,200 for US-born Indian Americans, the report said.Personal earnings for Indian Americans aged 16 and older averaged $85,300, well above the overall Asian American average of $52,400, the report also said.A UC Berkeley AAPI Data report reveals the highest concentrations of Indian Americans are in California (902,621), Texas (507,479), New Jersey (432,883), New York (431,368), and Illinois (276,519).Here is how they will benefit:CALIFORNIAHome to over 900,000 Indian Americans, California could see annual real wage gains of workers between $4,900 and $8,800 (approx. Rs 4.22 lakh to Rs 7.58 lakh), by an inflation-adjusted range over the next 4 years, while a typical family of four may take home $8,500 to $12,500 more (approx. Rs 7.32 lakh to Rs 10.76 lakh) annually, compared to if the new law wasn't passed.advertisementWith 4% of the labour force in tip-based industries, service workers – especially in hospitality and ridesharing – are set to benefit from the no-tax-on-tips provision.The bill is also expected to protect 737,000 jobs in the state. With 19% of employees regularly working overtime, many could also benefit from the no-tax-on-overtime clause.TEXASTexas, home to over 500,000 Indian Americans, sees comparable gains. Workers are projected to receive an annual real wage boost of $3,900 to $6,900 (approx. Rs 3.36 lakh to Rs 5.95 lakh), by an inflation-adjusted range over the next 4 years.Families of four may retain $7,500 to $10,700 more (approx. Rs 6.46 lakh to Rs 9.21 lakh) in take-home pay, compared to if the new law wasn't passed.The no-tax-on-tips benefit is expected to support about 5% of the workforce, while 27% could gain from the no-tax-on-overtime rule.An estimated 580,000 jobs are set to be protected across the state.NEW JERSEYIn New Jersey, which has a population of over 430,000 Indian Americans, the law provides substantial relief. Workers could see annual gains of $5,000 to $9,000 (approx. Rs 4.31 lakh to Rs 7.75 lakh), by an inflation-adjusted range over the next 4 years; while families may retain an extra $8,600 to $12,700 (approx. Rs 7.41 lakh to Rs 10.94 lakh) each year, compared to if the new law wasn't passed.advertisementAlso, 1.6 million seniors are likely to benefit from the tax exemption on Social Security.The overtime exemption is also relevant here: 21% of workers log extra hours, and 60% hold jobs eligible for overtime.The bill could protect 179,000 jobs statewide.NEW YORKIn New York, home to over 430,000 Indian Americans, workers may see annual wage increases of $4,400 to $8,000 (approx. Rs 3.79 lakh to Rs 6.89 lakh), by an inflation-adjusted range over the next 4 years.A family of four could gain an additional $8,000 to $11,700 (approx. Rs 6.89 lakh to Rs 10.08 lakh) in take-home pay, compared to if the new law wasn't passed.The state's 3.3 million seniors are also expected to benefit from the tax-free Social Security provision.With 22% of employees working overtime and 62% holding jobs likely eligible for it, the overtime exemption may affect a majority.The Act is also expected to protect 405,000 jobs in New York.ILLINOISIn Illinois, which has over 275,000 Indian Americans, workers could receive annual wage increases between $4,000 and $7,200 (approx. Rs 3.45 lakh to Rs 6.20 lakh), by an inflation-adjusted range over the next 4 years.advertisementMeanwhile, a typical family of four may gain an extra $7,600 to $11,000 (approx. Rs 6.55 lakh to Rs 9.47 lakh) annually, compared to if the new law wasn't passed.Roughly 2 million seniors in the state could benefit from tax-free social security, and the bill is projected to protect 252,000 jobs statewide.The Big Beautiful Bill's long-term impact remains to be seen. However, if the promised benefits of the legislation are realised as outlined, the Indian American population could see notable gains.- EndsTune In