Trump tells Walmart to “eat tariffs” instead of raising prices
President Donald Trump said Saturday that Walmart should “eat tariffs” rather than condemn the obligations imposed by his managers on imports due to increased retailers’ prices.
Reuters
WASHINGTON – A law passed US home early in the morning of May 22 has good news for the country’s wealthiest car buyers, parents, waiters and waitresses.
There’s bad news for people under $50,000, Medicaid and Food Stamp recipients, and those still in student loan debt.
But no one should bring it to the bank yet. The bill passed to enact President Donald Trump’s agenda still has a long way to go to become law. Now, he goes to the Senate where he could change, then votes again, then heads to the president’s desk for the president’s signature.
This is what you need to know about what Trump has in what he calls “a big and beautiful bill.”
Medicaid, snap cut
House Republicans have approved a major change that saves at least $625 billion from Medicaid, a program that provides health insurance to more than 71 million low-income Americans.
These changes are expected to lose health insurance over the next decade, according to initial estimates by the Nonpartisan Congressional Budget Office.
The law implements work requirements for adults registered with the Medicaid expansion, increasing the frequency of eligibility checks, allowing people to still qualify for the program.
Medicaid also bans funding at clinics that perform abortions, such as Planned Parenthood, and discourages the state from using its own funds to provide Medicaid compensation to undocumented children.
The bill also implements new work requirements for people aged 55-64, with a supplementary nutritional assistance program known as Snap or Food Stamps, which provides food aid to around 42 million Americans.
This will save up to $300 billion over the next decade and move the program’s costs to the state for the first time. It also limits SNAP eligibility to citizens and legal permanent residents, preventing future presidential administrations from increasing benefits without Congressional approval.
Great tax reduction
The tax cuts implemented through the 2017 Tax Cuts and Employment Act were signed into law by Trump at the end of the year during his first term. If they are not extended, the income tax rates for all but two income ranges will rise next year.
The bill would make those cuts permanent. This policy keeps tax rates low for all income groups, but disproportionately benefits wealthy Americans.
Families can benefit from an increase in child tax credits from $2,500 to 2028, then dropping to $2,000. If the bill is not passed, the child tax credit will return to $1,000 at the end of this year.
People over the age of 65 can also deduct an additional $4,000 from their taxes if they jointly file a filing of less than $75,000 or less than $150,000.
Tip: There are no taxes on overtime
Tiny employees, such as waiters and hairstylists, can claim new tax credits for tips up to 2028 and pay overtime wages. The bill also allows people to temporarily deduct up to $10,000 in vehicle loan interest when purchasing American-made vehicles.
The benefits of salt
Republicans in mostly democratic states like California, New York and New Jersey have sought an increase in the upper state and local tax credits, also known as salt.
The 2017 tax law limited that deduction to $10,000. The new bill will raise its cap to $40,000 for people under $500,000 a year.
Green Energy Rollback
The bill will block many green energy tax credits for projects that began 60 days after the bill was passed. This is a major priority and last-minute change for fiscal conservatives who wanted to shave more of the bill.
The bill will retract several other climate-related provisions in former President Joe Biden’s Inflation Reduction Act, including a $7,500 tax credit for electric vehicles.
It will pull back unsubsidized money for several grants and loan programs from the Energy Division and the U.S. Environmental Protection Agency, delay methane fees for oil and gas companies, eliminate additional rules that promote the adoption of electric vehicles, and accelerate fossil fuel projects.
“Trump” savings account
Children under the age of 8 will be given $1,000 each to allow Republican lawmakers to open a savings account called the “Trump” account.
Parents, other relatives, and nonprofits can donate $5,000 a year to your account free until your child is 18 years old. This is until you are 18 years old, where you can use some of your funds to use to higher education, training programs, home purchases, or start small businesses, until you have unlimited funds.
Taxing universities and boosting private schools
The bill will raise taxes on private universities’ contributions. Prices jump significantly at schools with higher funding rates, similar to those held by elite schools such as Harvard University.
The bill will allow the federal government to spend $5 billion a year for the next four years on vouchers that can be used to subsidize education outside of public schools.
Families earning less than three times their local median income and receiving federal scholarships created by the program may choose to spend an estimated $5,000 they receive on tuition or other schooling needs at private schools, parochial schools, homeschooling.
Student loan changes
The student loan relief regulations enacted by the Biden administration will be removed, and the number of federal loan repayment plans will be reduced to two programs.
The bill also places a significant cap on loans for parents and undergraduate students, while eliminating loan programs for future graduate students.
George Petras and Jennifer Boresen contributed.
