Latest news with #workingfamilies
New York Times
16-07-2025
- Business
- New York Times
Vance Tries to Sell the Benefits of Trump's Megabill but Ignores the Costs
Vice President JD Vance traveled to a crucial swing state on Wednesday to sell the Trump administration's signature domestic policy legislation as a victory for working American families, despite concerns even among some Republicans over its cuts to the safety net in service of benefiting the rich. In what amounted to an attempted brand relaunch of legislation that Democrats have framed as an attack on the middle class, Mr. Vance traveled to a machine shop in eastern Pennsylvania to spotlight provisions in the package that would cut taxes, preserve overtime pay and create $1,000 savings accounts for newborns. Left unmentioned by Mr. Vance were the cuts to Medicaid and the nutritional assistance programs that many of Mr. Trump's own supporters rely on. 'I think this will be transformational for the American people,' Mr. Vance said in front of signs that read 'No tax on tips' and 'America is back.' The vice president appealed to those in attendance to help the administration sell the package ahead of next year's midterm elections, arguing that it would benefit Americans like those working in the manufacturing facility serving as his backdrop. 'We're going to invest in American workers and American families every single day,' Mr. Vance added. 'That's my solemn promise to every single person in this room.' Selling the bill is likely to be an uphill climb, particularly after Republicans provided Democrats a series of sound bites expressing concern over how Medicaid cuts would hurt their constituents. While polls show the bill is broadly unpopular, it is difficult to say how much it will influence voters in future elections. Still, six out of 10 Americans find the package unpopular, according to a recent CNN poll. Roughly 58 percent of Americans said Mr. Trump had gone too far in cutting federal programs. Want all of The Times? Subscribe.
CBS News
14-07-2025
- Automotive
- CBS News
Some car buyers will get a tax break this year from the "big, beautiful bill." Here's how it works.
Millions of car buyers in the U.S. could soon get some tax relief thanks to a provision in the so-called " big, beautiful bill" that was signed into law on July 4 by President Trump. The idea of giving a tax break for auto purchasers was first floated by Mr. Trump while on the campaign trail in October, when he promised that such a measure would "make car ownership dramatically more affordable for millions and millions of working American families." That promise has now materialized as part of the One Big Beautiful Bill Act, with the new tax break taking effect for car purchases starting in 2025. But the deduction also has income limitations that narrow the number of Americans who can claim it, while used car buyers and vehicle leasers do not benefit. Still, car buyers who have bought a new vehicle this year or are planning to do so in the next four years may get some tax relief when they file their 2025 tax returns. The deduction will expire in 2028, which means car buyers can only take advantage of the benefit for four tax years. At the same time, the One Big Beautiful Act eliminates the federal tax credit for electric vehicles after Sept. 30. The tax break, which provides a $7,500 for new EVs and a $4,000 credit for used EVs, is credited with helping make electric vehicles more affordable for many buyers. Here's what to know. How much is the new auto loan deduction? The new tax cuts and spending law enables car buyers to deduct up to $10,000 in "qualified passenger vehicle loan interest during a given taxable year," beginning with 2025 purchases. While that's similar to the mortgage interest deduction available to homeowners, there is one major difference: Car buyers will be able to itemize their auto loan interest even if they take the standard deduction. By comparison, the mortgage interest deduction is only available to taxpayers who itemize. Which vehicles qualify for the deduction? The tax break applies to the purchase of new cars, motorcycles, sport utility vehicles, minivans, vans and pickup trucks weighing less than 14,000 pounds (referred to as light vehicles). Used cars don't qualify. To qualify for the deduction, a vehicle also must be assembled in the U.S., which further limits the tax break. The deduction also only applies to vehicles purchased for personal use, not for fleets or commercial purposes. And it excludes autos that are leased, which represent about one-quarter of all auto sales in the U.S., according to Experian. What are the income limits for the auto loan deduction? The full break can only be claimed by single taxpayers with a modified adjusted gross income (MAGI) of $100,000 or less or married couples with a MAGI of $200,000 or less. Modified adjusted gross income is your adjusted gross income, which can be found on line 11 of your 1040 tax return, with some items like savings bond interest added back in, according to the IRS. Under the new law, the auto loan deduction shrinks for people with MAGIs above those thresholds, with the amount reduced by $200 for each $1,000 in income above those levels. The deduction is completely phased out for single filers earning above $150,000 and married couples with incomes above $250,000. How many Americans will qualify for the car loan deduction? An estimated 3.5 million new vehicle loans could be eligible for the tax break this year if purchasing patterns stay the same and after excluding commercial vehicles and customers above the income cutoff, said Jonathan Smoke, chief economist at Cox Automotive. About 60% of the 15.9 million new light vehicles sold last year were financed with auto loans, according to Cox data. How much will the car loan deduction save on my taxes? That depends on the size of your auto loan and whether you fall below the income thresholds for the new tax break, but the typical car buyer could save hundreds per year on their taxes. The average new vehicle loan is about $44,000 financed over six years. Interest rates vary by customer, so the savings will, too. In general, the tax deduction will decline after the initial year because interest payments on loans are front-loaded, while principal payments grow on the back end. Car buyers who qualify for an auto loan rate of about 6.5%, typically available to consumers with high credit scores, could deduct $3,000 in the first year of owning their car and about $1,800 per year after that for the remainder of the loan, according to the American Financial Services Association, a consumer credit industry trade group. Deductions reduce a filer's taxable income, which helps lower their tax burden. For instance, someone in the 22% tax bracket could save $660 on their taxes by claiming a $3,000 auto loan deduction. At a 9.3% interest rate — typical of people with subprime credit scores — an average new vehicle buyer could save about $2,200 on taxes over four years, Smoke said.
Yahoo
14-07-2025
- Business
- Yahoo
Opinion - 5 big wins for the middle class in the ‘big, beautiful' law
President Trump has once again defied the odds and the Washington establishment. With the stroke of a pen, the 'big, beautiful' budget bill became law on July 4, delivering a stunning victory for his second-term agenda and a bold affirmation of his promise to put America's middle class first. The new tax and spending law delivers real, lasting changes that strengthen working families, reward productivity, and restore common sense to Washington's economic priorities. Here are five ways it will benefit the middle class, highlighting how this legislation serves as a cornerstone for a more prosperous economic future for tens of millions of Americans. 1. Extending the tax cuts The centerpiece of the new tax and spending law is an extension of the personal income tax cuts created by the Tax Cuts and Jobs Act, which President Trump signed into law in 2017. The 2017 tax cut law provided one of the most significant tax cuts in history for middle-income Americans. Earlier this year, I published an updated study about the effects of the 2017 tax cuts for individuals and families. As I showed in that report, the taxpayers who received the biggest cuts, in terms of percentage saved, were those earning less than $75,000. The study further revealed that more than 50 million middle-income filers have likely saved between $6,322 and $13,494 each because of the legislation's tax cuts. The personal income tax cuts included in the 2017 law were set to expire at the end of this year. Without the extension contained in the 'big, beautiful' bill, the sunset of the tax cuts would have caused one of the largest tax increases in history for nearly all Americans, including the middle class. Tens of millions of families would have been forced to pay thousands more in taxes over the next five years as a result of letting the Tax Cuts and Jobs Act cuts expire. Thankfully, that didn't happen. The new spending law has made those personal tax cuts permanent, creating much-needed certainty and preventing skyrocketing tax bills for families. 2. Increasing the Child Tax Credit The new tax and spending law expanded and made permanent the Child Tax Credit, which was also set to expire at the end of this year. The revised Child Tax Credit will provide a $2,200 cut to families' tax bills for each qualifying child, a $200-per-child increase compared to this year. Additionally, the Child Tax Credit will increase in future years, based on inflation. Middle and working-class filers are the biggest beneficiaries of the Child Tax Credit, which phases out for higher-income earners. The new Child Tax Credit will save families with two children or more at least $4,400 per year, or $22,000 over the next five years. Had the current tax credit expired at the end of the year, the credit would have dropped to $1,000 and eligibility requirements would have excluded many families from taking advantage of the provision. 3. Reduced taxes for tips and overtime pay In keeping with two of President Trump's most-talked-about campaign promises, the 'big, beautiful' law dramatically reduced taxes for tips and overtime, policies that benefit middle-income and working-class filers the most. Under the new law, workers will be allowed to deduct as much as $25,000 in tips from their income tax bill. The cap decreases for individuals earning $150,000 per year or more and couples earning $300,000 or more. The deduction for overtime pay is $12,500. These two provisions could save filers thousands of dollars per year, depending on current income levels. However, because of budget reconciliation rules, both provisions are set to expire in 2029. 4. Trump Accounts Perhaps the most underrated part of the new tax and spending law is the creation of a new tax-advantaged program commonly called Trump Accounts. Trump Accounts allow parents to save as much as $5,000 per year for their children. Contributions are tax-deductible, which means parents won't pay taxes on the money they contribute each year to the fund. Trump Account funds will be invested in a U.S. stock index fund, a relatively safe way to enjoy long-term investment gains. The funds cannot be withdrawn until a child turns 18, but at that time, he or she can use the funds for qualified expenses, which includes buying a home, starting a small business or paying for college. During the year of withdrawal, children would have to pay income taxes on the funds withdrawn, but since most young adults do not have high-paying jobs, the tax bills should be low. Employers will also be allowed to contribute up to $2,500 per year for their employees' Trump Accounts. Those funds will not be counted as income for employees for tax purposes, either. Additionally, the law creates a four-year pilot program that automatically opens accounts for children born between Jan. 1, 2025 and Dec. 31, 2028 and provides each of those children with a $1,000 deposit. If used properly, Trump Accounts will be a powerful way for middle-income families to set their children up for success. Based on an annual average return of 10 percent, a family that contributes just $200 per month to a child's Trump Account would provide that child with about $120,000 at the age of 18, assuming the parents start at the time the child is born. That's more than enough money to help a child buy a small home, start a business or pay for college expenses. 5. Tax deduction for seniors The legislation provides a tax deduction up to $6,000 for filers aged 65 or older and whose income is $75,000 or less ($150,000 or less for couples). When combined with the new, increased standard deduction offered under the law, the $6,000 deduction for seniors will effectively eliminate taxes on Social Security income for the vast majority of filers. The Social Security Administration says thanks to the new changes, 'nearly 90 percent of Social Security beneficiaries will no longer pay federal income taxes on their benefits.' Justin Haskins is a New York Times bestselling author, a senior fellow at The Heartland Institute, and president of the nonpartisan think tank Our Republic. Copyright 2025 Nexstar Media, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed. Sign in to access your portfolio
CTV News
10-07-2025
- Business
- CTV News
Most U.S. adults say child care costs are a ‘major problem,' a new AP-NORC poll finds
Americans overwhelmingly view the cost of child care as a significant issue, and most support initiatives to offer free or low-cost day care and to require employers to provide paid family leave for parents of babies, according to a new poll. But they're divided over how to solve the problem and what role the government should have in that solution. About three-quarters of U.S. adults see child care costs as a 'major problem,' but only about half say helping working families pay for child care should be a 'high priority' for the federal government, according to the June poll from The Associated Press-NORC Center for Public Affairs Research. The coronavirus pandemic was a tipping point, revealing the child care industry's vulnerabilities. The latest congressional package of tax cuts included tax credits and benefits for parents and businesses that assist employees with child care. Those changes have been praised by some, while others say millions of families at lower income levels wouldn't get the full credit and would be affected by cuts in Medicaid and food stamps. The poll findings help explain the difficulty advocacy groups, elected officials and families navigate in trying to address the high costs of care: While most agree it's a problem, there isn't a simple fix. For instance, while government-funded child care is popular, that might not be everyone's first choice. Many U.S. adults also think it's better for children with two parents to be cared for full time by a parent. 'Everyone kind of agrees that it's a problem that we need to address,' said Sarah Rittling, executive director of the First Five Years Fund advocacy organization. 'By having this issue out there, it really is driving a lot of bipartisan conversations.' Some consensus on free day care and paid family leave Most Americans support initiatives to offer child care or additional time for working families to spend with babies. About two-thirds support providing free or low-cost day care for children too young to attend public school, and a similar share favor requiring employers to provide paid family leave for new parents. Women are more likely than men to support the proposals, and Democrats are more likely than Republicans, but each is popular across the board. Mary Banek, a nurse anesthetist of Midlothian, Texas, said she helps take care of her 1-year-old grandson so he doesn't need day care. When she had her kids, she left the workforce and got a license to start a day care from her home to watch 12 children, including her own, so she could generate income. Banek said she's surprised at the high fees at day cares these days. 'I don't know what's happened and why it is so expensive,' Banek said, adding maybe there's a way to cap costs. She doesn't feel the government should foot the cost. Many think parents should be caregivers While many solutions focus on families with working parents, there isn't broad agreement this is the best arrangement for children. Just under half of U.S. adults, 45 per cent, say children with two parents are better off when one parent doesn't have a job and raises the children. Only about one in 10 say children are better off when both parents work full time, and about four in 10 say it doesn't make a difference. U.S. Vice President JD Vance has tried to push for ideas that would encourage Americans to have families but has opposed government spending on child care, saying children benefit from having a parent or family member at home as a caretaker. About half of men say children with two parents are better off when one is the full-time caregiver, compared with about four in 10 women. Stephen Yip-Wineman, 45, a high school teacher from Murrieta, California, who describes himself as a moderate, said he feels society doesn't see the value of parents choosing to be caretakers. 'A lot of people are pushed into the idea that everyone in their family is going to work and that's the way of being a productive member of society,' Yip-Wineman said. 'They think staying home and taking care of the kids is somehow not contributing.' Yip-Wineman has two children ages 12 and 14, and their mother stays home, but he says his ideas of having a parent do the caretaking don't have to do with making the mother the primary caretaker. 'Having a parent raise the kids is not about pushing traditional Christian values and trying to keep women out of the workplace,' he said. 'It's about trying to be more personally engaged with each other.' Are changes happening? Many Democrats and Republicans have endorsed expansions to the child tax credit as a way to support families and lift children and young families out of poverty. While campaigning as U.S. President Donald Trump's running mate, Vance raised the possibility of increasing the child tax credit to $5,000, saying that would help more parents stay home with their children. About 7 in 10 U.S. adults said they'd support increasing the child tax credit from $2,000 to $2,500 for parents who are U.S. citizens, a Washington Post/Ipsos poll from June found. Republicans and Democrats were similarly likely to support this: About 8 in 10 of each were in favor. In the final bill, however, the child tax credit increased to $2,200. Beyond expanding the child tax credit, the package also increased a benefit allowing most working parents to claim a higher percentage of their child care expenses and get more tax credits. Organizations want increased funding for federal early-learning and care programs, including a child care program for low-income families and an early-education program called Head Start. Trump's Republican administration backed away from a proposal this year to eliminate funding for Head Start. Other groups, including Child Care Aware of America, have pointed out the new law's cuts in Medicaid would result in a loss of health coverage for many child care workers. Adriana Gomez Licon And Linley Sanders, The Associated Press
Associated Press
10-07-2025
- Business
- Associated Press
Most US adults say child care costs are a 'major problem,' a new AP-NORC poll finds
Americans overwhelmingly view the cost of child care as a significant issue, and most support initiatives to offer free or low-cost day care and to require employers to provide paid family leave for parents of babies, according to a new poll. But they're divided over how to solve the problem and what role the government should have in that solution. About three-quarters of U.S. adults see child care costs as a 'major problem,' but only about half say helping working families pay for child care should be a 'high priority' for the federal government, according to the June poll from The Associated Press-NORC Center for Public Affairs Research. The coronavirus pandemic was a tipping point, revealing the child care industry's vulnerabilities. The latest congressional package of tax cuts included tax credits and benefits for parents and businesses that assist employees with child care. Those changes have been praised by some, while others say millions of families at lower income levels wouldn't get the full credit and would be affected by cuts in Medicaid and food stamps. The poll findings help explain the difficulty advocacy groups, elected officials and families navigate in trying to address the high costs of care: While most agree it's a problem, there isn't a simple fix. For instance, while government-funded child care is popular, that might not be everyone's first choice. Many U.S. adults also think it's better for children with two parents to be cared for full time by a parent. 'Everyone kind of agrees that it's a problem that we need to address,' said Sarah Rittling, executive director of the First Five Years Fund advocacy organization. 'By having this issue out there, it really is driving a lot of bipartisan conversations.' Some consensus on free day care and paid family leave Most Americans support initiatives to offer child care or additional time for working families to spend with babies. About two-thirds support providing free or low-cost day care for children too young to attend public school, and a similar share favor requiring employers to provide paid family leave for new parents. Women are more likely than men to support the proposals, and Democrats are more likely than Republicans, but each is popular across the board. Mary Banek, a nurse anesthetist of Midlothian, Texas, said she helps take care of her 1-year-old grandson so he doesn't need day care. When she had her kids, she left the workforce and got a license to start a day care from her home to watch 12 children, including her own, so she could generate income. Banek said she's surprised at the high fees at day cares these days. 'I don't know what's happened and why it is so expensive,' Banek said, adding maybe there's a way to cap costs. She doesn't feel the government should foot the cost. Many think parents should be caregivers While many solutions focus on families with working parents, there isn't broad agreement this is the best arrangement for children. Just under half of U.S. adults, 45%, say children with two parents are better off when one parent doesn't have a job and raises the children. Only about 1 in 10 say children are better off when both parents work full time, and about 4 in 10 say it doesn't make a difference. Vice President JD Vance has tried to push for ideas that would encourage Americans to have families but has opposed government spending on child care, saying children benefit from having a parent or family member at home as a caretaker. About half of men say children with two parents are better off when one is the full-time caregiver, compared with about 4 in 10 women. Stephen Yip-Wineman, 45, a high school teacher from Murrieta, California, who describes himself as a moderate, said he feels society doesn't see the value of parents choosing to be caretakers. 'A lot of people are pushed into the idea that everyone in their family is going to work and that's the way of being a productive member of society,' Yip-Wineman said. 'They think staying home and taking care of the kids is somehow not contributing.' Yip-Wineman has two children ages 12 and 14, and their mother stays home, but he says his ideas of having a parent do the caretaking don't have to do with making the mother the primary caretaker. 'Having a parent raise the kids is not about pushing traditional Christian values and trying to keep women out of the workplace,' he said. 'It's about trying to be more personally engaged with each other.' Are changes happening? Many Democrats and Republicans have endorsed expansions to the child tax credit as a way to support families and lift children and young families out of poverty. While campaigning as Donald Trump's running mate, Vance raised the possibility of increasing the child tax credit to $5,000, saying that would help more parents stay home with their children. About 7 in 10 U.S. adults said they'd support increasing the child tax credit from $2,000 to $2,500 for parents who are U.S. citizens, a Washington Post/Ipsos poll from June found. Republicans and Democrats were similarly likely to support this: About 8 in 10 of each were in favor. In the final bill, however, the child tax credit increased to $2,200. Beyond expanding the child tax credit, the package also increased a benefit allowing most working parents to claim a higher percentage of their child care expenses and get more tax credits. Organizations want increased funding for federal early-learning and care programs, including a child care program for low-income families and an early-education program called Head Start. Trump's Republican administration backed away from a proposal this year to eliminate funding for Head Start. Other groups, including Child Care Aware of America, have pointed out the new law's cuts in Medicaid would result in a loss of health coverage for many child care workers. ___ The AP-NORC poll of 1,158 adults was conducted June 5-9, using a sample drawn from NORC's probability-based AmeriSpeak Panel, which is designed to be representative of the U.S. population. The margin of sampling error for adults overall is plus or minus 4 percentage points.
