One Big Beautiful Bill - The Good, the Bad and the Ugly
1. Good:
1.1 Spending Reduction & Limited Entitlement Reform
I) Medicaid work requirements
II) Gradual reduction of the federal cap on provider taxes
III) More frequent Medicaid eligibility checks (bi-anually)
IV) Co-pay of up to $35 for Medicaid expansion enrollees
V) Shortened ACA premium subsidy enrollment period & a prohibition of automatic re-enrollment
VI) Delayed ACA premium subsidy transfer until after the eligibility of the claimant is verified
VII) Shifting costs for SNAP to the states in case of a high rate of improper payments
VIII) Tightening and expanding work requirments for SNAP recipients
IX) Rolling back student loan debt relief
X) Paring back green industrial policy consumer subsidies & corporate tax credits
1.2 Tax Reform
I) Extension of TCJA income tax rates and income brackets (made permanent)
II) Extension and Modifcation of the Alternative Minimum Tax (higher exemptions and phase out thresholds made permanent)
III) Extended and enhanced Standard Deduction paired with fewer itemized deductions (made permanent)
IV) Repeal of research and development amortization and retroactive benefits for investments made after Dec. 31, 2021 (made permament)
V) Bonus depreciation and higher business interest payment deduction
VI) A $1,000 ($2,000 for married couples filing jointly) above-the-line charitable contributions deduction.
2. Bad
1.1 Special, populist tax giveaways
I) No tax on tips
II) No taxes on overtime
III) A deduction for auto loan interest expenses
IV) $6,000 per-person deduction for seniors
V) Higher Child Tax Credit
VI) Expansion of the Low-Income Housing Tax Credit
1.2 Highly regressive tax and spending changes
I) Increased SALT deduction cap
II) Increased estate and gift tax exemption
III) Increased farm subsidies
3. Ugly
I) The failure to include a nationwide moratorium on state AI regulation
II) The failure to include public land sale provisions
III) Pork barrel concessions to Alaska, thereby weakening the SNAP reform
IV) The failure to repeal and rescind all of the IRA, IIJA and CHIPS & Science Act subsidies and tax credits by 2026
V) The failure to either reduce the FMAP (federal medical assistance percentage) for ACA expansion enrollees down from 90% and or the failure to restructure Medicaid matching funds into per capita block grants
VI) The failure to transform SNAP (food stamps) into a fruits & vegetables only program and to clamp down more rigidly on abuse, waste and fraud
VII) The failure to include any Social Security or Medicare reform
1.1 Spending Reduction & Limited Entitlement Reform
I) Medicaid work requirements
II) Gradual reduction of the federal cap on provider taxes
III) More frequent Medicaid eligibility checks (bi-anually)
IV) Co-pay of up to $35 for Medicaid expansion enrollees
V) Shortened ACA premium subsidy enrollment period & a prohibition of automatic re-enrollment
VI) Delayed ACA premium subsidy transfer until after the eligibility of the claimant is verified
VII) Shifting costs for SNAP to the states in case of a high rate of improper payments
VIII) Tightening and expanding work requirments for SNAP recipients
IX) Rolling back student loan debt relief
X) Paring back green industrial policy consumer subsidies & corporate tax credits
1.2 Tax Reform
I) Extension of TCJA income tax rates and income brackets (made permanent)
II) Extension and Modifcation of the Alternative Minimum Tax (higher exemptions and phase out thresholds made permanent)
III) Extended and enhanced Standard Deduction paired with fewer itemized deductions (made permanent)
IV) Repeal of research and development amortization and retroactive benefits for investments made after Dec. 31, 2021 (made permament)
V) Bonus depreciation and higher business interest payment deduction
VI) A $1,000 ($2,000 for married couples filing jointly) above-the-line charitable contributions deduction.
2. Bad
1.1 Special, populist tax giveaways
I) No tax on tips
II) No taxes on overtime
III) A deduction for auto loan interest expenses
IV) $6,000 per-person deduction for seniors
V) Higher Child Tax Credit
VI) Expansion of the Low-Income Housing Tax Credit
1.2 Highly regressive tax and spending changes
I) Increased SALT deduction cap
II) Increased estate and gift tax exemption
III) Increased farm subsidies
3. Ugly
I) The failure to include a nationwide moratorium on state AI regulation
II) The failure to include public land sale provisions
III) Pork barrel concessions to Alaska, thereby weakening the SNAP reform
IV) The failure to repeal and rescind all of the IRA, IIJA and CHIPS & Science Act subsidies and tax credits by 2026
V) The failure to either reduce the FMAP (federal medical assistance percentage) for ACA expansion enrollees down from 90% and or the failure to restructure Medicaid matching funds into per capita block grants
VI) The failure to transform SNAP (food stamps) into a fruits & vegetables only program and to clamp down more rigidly on abuse, waste and fraud
VII) The failure to include any Social Security or Medicare reform
