The OBBBA revived expensing for R&D costs. What's the value of this incentive? The stakes are high in the age of AI.
A new paper looks at how R&D tax rules affect the labor market. More at the link!
#tax #taxlaw #taxpolicy #OBBBA #TCJA #AI
TaxProf Blog: bit.ly/4ar34Qx
Charted titled "Trailing 12M P/E Ratio: 10-Years" Source: https://advantage.factset.com/hubfs/Website/Resources%20Section/Research%20Desk/Earnings%20Insight/EarningsInsight_101725B.pdf (pg 32)
This tells the story. 2015-17 there was no earnings growth. Comes Trump and cuts taxes in #TCJA and voila - earnings grow (literally the net effect of accounting), then we get Covid and inflation. Sure, fine, the new "normal" level of earnings is 2022-H124 - after which comes the #AI boom.
Report: #TCJA creates financial strain, inequities for New York
This is because the latter estimate starts with a $442B baseline, it's estimating the effects of the #OBBB in the reference frame in which #TCJA is already in place. So that, when we go from column 2 to column 3 we can not find $3.7T of stimulus to lead to a $1.827T reduction in deficit. #Econsky
US #pharma #trade #deficit appears to be of Trump’s own making. This deficit averaged ~$30bn from 2002-2015 but after the 2017 #TCJA tax bill set a 10.5% min tax on global intangible income ... chart #JPMorganAM
#TaxCuts for the Rich? Under #TCJA extensions, the top 0.1% would get a $416k tax cut —equal to a median-priced Mesa County home—while vital services for #CO families face cuts. #Taxbreaks for the ultra-wealthy shouldn’t come at the cost of jobs, research, and community resources. #TaxtheRich
(Wow!) While the average #statutory corporate income tax rate remains at 21%, reinstatement of #TCJA’ s business provisions could push the effective corporate rate to as low as 12%, the lowest level in US history, notes #MorganStanley
Policy changes:
Budget cuts and tariffs against a small additional tax cut, crypto, "deregulation", "energy", and "immigration".
#OBBB = #TCJA extension + $42B p.a.
Loss of income and added costs against potential for taking risk and inflation.
The only question is whether it's 2005 or 2007?
The TCJA rollback = less savings, more tax.
Now’s the time to act.
L&Y Business & Tax Advisors can help → vist.ly/3n8r2r6
#TaxStrategy #LYTaxAdvisors #TCJA #WealthMoves
Join us for a July 10 webinar with noted tax expert Ed Zollars, CPA as he breaks down the tax elements of the One Big Beautiful Bill Act: www.njcpa.org/learn/explor...
#obbba #taxact #tcja #tax #taxupdate #webinar #cpa
Assessing if #OBBB projections are fabricated or not, it's critical to understand there are two estimates. One: current law -> current policy -> OBBB, and another: current policy -> OBBB. The latter estimates effects of adding $442B of stimulus, not of adding this and not removing #TCJA.
#Econsky
You must ask yourself: if in the current law fow it's the #TCJA stimulus (of $3.7T tax cuts that are now being made into law) that drives growth so that "plus growth from tax cuts" we get a $1.8T increase in revenue, what drives this increase in the current policy fow?
not entirely true, and that's part of the reason they're working so freaking hard to get this passed this year
The Tax Cuts and Jobs Act of 2017 allows estates up to 13.6 million per person to pass to heirs untaxed.
If it expires, it drops back to about 5 million per person.
#TCJA
A meme of the Death Start labelled "MAGA BUDGET."
Considering the #MAGA budget (www.whitehouse.gov/wp-content/u...) it appears as another of Miran's fabrications.
Idea is #OBBB by "[averting] a $4T tax hike" from #TCJA expiry and through minor adjustments results in 1.1-1.2% GDP growth above a 3.5% baseline and a $11T deficit decrease.
#Econsky
#OBBBA #BigBeautifulBill Vote: Friday, June 27, 2025.
🚫Cut #Medicaid by $793B, leaving 8M people uninsured
🚫Reduce #ACAMarketplace by $268B
🚫Cut #SNAP (food stamps) by $300B
🚫Extend #TCJA which gives corporations & the 1% tax cuts
Tell your Senators to vote NO to #HR1!
Call ☎️📲 (202) 224-3121
The biggest reduction in #tax burdens in #TCJA went to the lowest income and middle income families. Congrats to House Ways and Means Committee chairman @RepJasonSmith and his staff for putting out this handy lie detector test.
committeetounleashprosperity.com/hotlines/wha...
Currently, the #bill aims to make many of the #tax cuts in the 2017 #TCJA permanent, estimated to cost $3.8trn over 10y, with net spending cuts reducing the estimated net cost to $3.2trn over 10y, chart @JPMorganAM
If spending and tax changes in Reconciliation are made permanent, federal debt increases by 11.1% in 10 years and 24.3% in 30 years. GDP remains flat and wages fall by 0.5%. Dynamic costs exceed conventional costs in the budget window. #TCJA
budgetmodel.wharton.upenn.edu/issues/2025/...
#TCJA
#cutting #Medicaid to pay for low taxes on the #rich is a terrible #trade for American families, chart @epi.org
www.epi.org/publication/...
#TCJA eliminated deductions for unreimbursed employee expenses, tax prep fees, and other deductions. It eliminated the deduction for theft and personal casualty losses, although taxpayers can still claim a deduction for certain casualty losses occurring in federally declared disaster areas.
Senator Thune is on the floor calling out the HORRIBLE BIDEN economy. 🙄
BIDEN grew US economy faster than any sitting POTUS and increased energy production.
What’s Thune pushing?
TAX CUTS FOR MULTI-MILLIONAIRES and growth of Trump Stable Coin.
Thune wants to restore
#TCJA
1/2
Why did Congress pass a law to allow yachts and private planes to get extra tax benefits, courtesy of #TCJA from 2017? The only people benefiting from this are the 1%. @housedemocrats.bsky.social @senatedemocrats.bsky.social
🎧 Catch the discussion on Taxes for the Masses – Tax Nerdery with Lisa De Simone & Bridget Stromberg.
Thanks to UNC Tax Center and the podcast hosts for the spotlight!
#TaxResearch #TCJA #TRR266 #Econ
"Congressional Budget Office (CBO) found that extending the 2017 Tax Cuts and Jobs Act (TCJA) would not only increase the national debt by $37 trillion over thirty years, but also shrink the economy by 1.8 percent or more by 2054."
#america #deficit #TCJA
www.crfb.org/blogs/unpaid...
In honor of #TaxDay, check out the following pieces from our archives featuring research on taxes, inequality, growth, the #TCJA, and more!
A 🧵:
First, @dsmitch28.bsky.social breaks down the Tax Cuts and Jobs Act of 2017 and its true beneficiaries, years later.
equitablegrowth.org/six-years-la...
When a politician offers and advertises tax-cuts, always ask for specifics.
From an analysis of the Trump-backed budget reconciliation by The Institute for Taxation and Economic Policy:
#trumptaxes
#TCJA
The budget got shoved through most expediently. The $70-80B annual tax cut above #TCJA extension is a small fraction of it's size and impactful as welfare payments for Trump voters offsetting effects of tariff inflation. No spending cuts in bill. All "impoundment".
finance.yahoo.com/news/house-p...
Chartered by Legal Code: How the #TCJA Redefined Global Profit Shifting democracychallenged.com/2025/04/10/c...
In the coming #budget tax cuts are extension of #TCJA and thus not a stimulus. Senate bill has $800B in tax cuts over it but near zero spending cuts. House bill has $2T in spending cuts legitimising DOGE. Perhaps they can reconcile by agreeing to "impound".
finance.yahoo.com/news/trump-t...
Republican Tax Cuts Could Add $9 Trillion to the National Debt.
#NationalDebt #TCJA #TaxCuts #Taxes #USPol #Politics #Congress #USGOV #Trump #handsoff #bluewave #bluesky #bluestorm #republican
