What's inside Donald Trump's ‘One Big Beautiful Bill': Tax cuts, medicaid & food aid slashed, no EV credits & more
Dubbed the One Big Beautiful Bill Act, the nearly 900-page package would extend Trump's 2017 tax cuts, create new benefits for workers and businesses, roll back clean energy incentives, and impose cuts to safety net programs including Medicaid and food assistance.
State and Local Tax Deduction: Temporarily raises the SALT cap to $40,000 through 2029, phasing out for incomes above $500,000. Some GOP holdouts, like Rep. Nick LaLota (R-NY), still oppose the provision, arguing it should be extended for at least a decade.
No Tax on Tips and Overtime: Exempts up to $25,000 in annual tips and $12,500 in overtime pay per individual through 2028, with phase-outs starting at $150,000 in income.
Child Tax Credit: Increases to $2,200 per child and permanently adjusts for inflation.
Trump Child Accounts: Allows up to $5,000 a year in tax-deferred contributions for children. Newborns between 2025 and 2028 would get a $1,000 federal contribution.
Auto Loan Deduction: Creates a new deduction up to $10,000 for auto loan interest on U.S.-assembled vehicles.
Business Tax Breaks: Makes three corporate deductions permanent, including 100% bonus depreciation, a move likely to benefit manufacturers and banks.
Semiconductors: Expands the chip investment credit from 25% to 35%.
Medicaid: Nearly $1 trillion in cuts over a decade. The Congressional Budget Office estimates 11.8 million Americans could lose coverage.
Work Requirements: New mandates for Medicaid recipients who aren't elderly, disabled, or caring for young children.
Food Stamps: Expands work requirements up to age 65 and shifts some costs to states. Alaska and Hawaii won partial waivers to secure support from Sen. Lisa Murkowski (R-AK).
Clean Energy: Accelerates phase-out of wind and solar tax credits, requiring projects to be operational by end of 2027. Also eliminates an excise tax targeting Chinese components.
Electric Vehicles: Ends the $7,500 EV tax credit by September 30, 2025.
Border Security: Allocates $92 billion for border infrastructure and migrant detention, including new funding for Trump's wall.
Remittance Tax: Imposes a 1% fee on money sent abroad, down from 3.5% in the House version.
Rural Hospitals: Creates a $50 billion fund to cushion Medicaid cuts in rural communities.
Consumer Financial Protection Bureau: Slashes its funding cap nearly in half.
Endowment Tax: Raises rates on wealthy universities, with a top rate of 8% on large endowments.
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Economic Times
28 minutes ago
- Economic Times
US stock market today: Wall Street edges higher as S&P 500 gains on Trump's Vietnam trade deal, Nasdaq jumps, Dow steady amid weak ADP jobs data
S&P 500 rises as President Trump announces new U.S.-Vietnam trade deal, but gains remain modest amid weak June payroll data. Market eyes Thursday's official jobs report and possible Fed rate cut. Dow trades flat, Nasdaq gains 0.7%. S&P 500 rises after Trump reveals Vietnam trade deal, but weak jobs data keeps gains in check- The S&P 500 rose on Wednesday following a surprise announcement from President Donald Trump about a new U.S.-Vietnam trade deal, which he shared via Truth Social. The benchmark index edged up 0.2%, driven by fresh hopes of improving global trade relations. However, the enthusiasm on Wall Street was held back by troubling labor market data. According to the latest ADP payrolls report, the U.S. private sector lost 33,000 jobs in June, the first monthly drop since March 2023, and far below economists' forecast of a 100,000-job gain. The Nasdaq Composite performed slightly better, climbing 0.7%, while the Dow Jones Industrial Average hovered near the flatline, reflecting mixed investor sentiment amid both positive trade developments and concerning economic indicators. The US stock market showed mixed movements today, July 2, 2025, with the S&P 500 and Nasdaq Composite trading higher, while the Dow Jones Industrial Average saw modest gains. The markets responded to President Donald Trump's announcement of a Vietnam trade deal, alongside investor caution over weaker-than-expected private payroll data for June. S&P 500 (via SPY ETF): 618.8 , up 0.2% , up Nasdaq Composite: +0.7% , helped by tech recovery , helped by tech recovery Dow Jones Industrial Average: Up nearly 400 points or ~0.9%, led by industrials and materials Tesla stock surged nearly 6% after reporting 384,000 Q2 deliveries, beating expectations. deliveries, beating expectations. Health-care sector dropped sharply, with one major provider falling around 40%, dragging others in the group. Materials and industrials stocks gained, as investors rotated away from tech and into value sectors. ADP private payrolls report showed a decline of 33,000 jobs in June — the first monthly drop since March 2023. jobs in June — the first monthly drop since March 2023. Economists had expected a gain of 100,000 jobs, leading to speculation about a potential Fed interest rate cut at the July meeting. jobs, leading to speculation about a potential Fed interest rate cut at the July meeting. Eyes are now on Thursday's official non-farm payroll report, forecasted to show 110,000 job gains and 4.3% unemployment. Federal Reserve decision on interest rates could shift if job data continues to weaken. Investors remain cautious, with stock indexes near all-time highs and macroeconomic uncertainty in focus. Trump's tax-and-spending bill, which just passed the Senate, is heading to the House and may influence fiscal policy outlook in the coming weeks. Tariff deadlines and ongoing geopolitical developments are also on the radar for market watchers. President Trump's announcement of a new trade deal with Vietnam provided a brief tailwind to the S&P 500 and investor sentiment. Although the president did not offer details about the agreement, the post alone was enough to shift market focus from ongoing global economic uncertainty to potential international cooperation. This deal could mark a strategic step in balancing Asian trade relations, especially as tensions with China continue to weigh on global markets. However, without specifics, analysts remain cautious. Markets are looking for clarity—such as whether the deal covers tariffs, technology exchange, or broader economic cooperation. The optimism sparked by Trump's trade news was tempered by a stark jobs report from ADP, showing that private payrolls declined by 33,000 last month. This marked the first negative reading since March 2023, and it shocked analysts, who had projected a gain of 100,000 jobs. Ross Mayfield, an investment strategist at Baird, told CNBC, 'We've been seeing a weakening of the labor market for months, and I always wondered if it would take a negative payrolls print to get the [Federal Reserve] to pay more attention.' His comment reflects growing concern that the Fed's focus on inflation may be overshadowing emerging cracks in the labor sector. Investors are now speculating whether Federal Reserve policymakers will shift course. A weak job market could become a trigger for a long-anticipated rate cut, especially as inflation pressures begin to cool. The CME Group's FedWatch tool now shows a 25% chance of a July rate cut, up from 20% just the day before. Sam Stovall, chief investment strategist at CFRA Research, believes that a softer jobs report could clear the path. 'If we end up having a fairly weak employment report, then that could allow the Fed to be cutting rates,' he said. Stovall also pointed out that Fed Chair Jerome Powell had previously mentioned that the central bank would have already cut rates if not for Trump's earlier tariff plans. Despite Wednesday's ADP data, traders are now looking ahead to Thursday's official government jobs report. Economists are forecasting a gain of 110,000 jobs for June. However, if that figure misses the mark in a similar way to ADP's number, markets may begin pricing in more aggressive Fed action later this month. This comes as stocks flirt with record highs, making them particularly sensitive to economic data and Federal Reserve decisions. Wall Street's mixed performance—where the Dow surged 400 points on Tuesday while tech-heavy indexes fell—suggests a market still unsure about its direction. In addition to the trade announcement and economic data, investors are watching Trump's tax-and-spending bill, which narrowly passed the Senate on Tuesday. The measure now returns to the House, where some GOP lawmakers remain opposed. The bill could have broad implications for sectors like infrastructure, healthcare, and manufacturing, depending on how funds are allocated. Meanwhile, the market has seen a rotation out of technology stocks and into more defensive sectors such as materials and healthcare, signaling that investors are bracing for potential economic headwinds. Index Move Today S&P 500 +0.2% Nasdaq +0.7% Dow Jones +0.9% (~400 pts) Tech stocks recovered, led by Tesla Health-care stocks under pressure Investors watch job data and Fed signals closely S&P 500 rose 0.2%; Nasdaq gained 0.7%; Dow was flat. President Trump announced a new U.S.-Vietnam trade deal, but offered no specifics. ADP report showed 33,000 private jobs lost in June, vs. 100,000 expected. Fed may consider interest rate cuts if Friday's official jobs data also disappoints. Trump's tax bill passed Senate, still faces GOP resistance in House. With Trump's trade diplomacy making waves and labor market signals flashing warning signs, all eyes are on the upcoming jobs report and the Federal Reserve's July policy meeting. The next few days could shape the trajectory of both the stock market and U.S. economic policy for the rest of 2025. Q1: Why did the S&P 500 rise after Trump's Vietnam trade deal? Because investor sentiment improved after Trump revealed a new trade agreement with Vietnam. Q2: Could weak jobs data lead to a Fed rate cut? Yes, a drop in payrolls could push the Fed to lower interest rates this month.
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Business Standard
31 minutes ago
- Business Standard
US-Vietnam trade deal: Trump announces 20% import tariff, market access
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United News of India
31 minutes ago
- United News of India
To curb drug smuggling Maha govt will bring amendment to MCOCA: CM Fadnavis
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