On May 18, 2025, the House Budget Committee gave its nod to a significant piece of legislation known as “The One, Big, Beautiful Bill.” This bill, poised for revision by the House Rules Committee, is gearing up for a vote on the House floor. It represents a sweeping continuation and expansion of the 2017 Tax Cuts and Jobs Act, introducing a myriad of new provisions aimed at reshaping the tax landscape for businesses, individuals, and tax-exempt organizations alike.


Business Provisions

The House Bill extends several key business provisions. Notably, the definition of “adjusted taxable income” under section 163(j) will be based on EBITDA from 2025 to 2028, a move that is favorable to taxpayers. The deduction for qualified business income under Section 199A is increased to 23%, and the global intangible low-taxed income (GILTI) provisions are made permanent at a 10.5% rate. Additionally, the base-erosion and anti-abuse tax (BEAT) is set to remain at 10.5% permanently.


Other notable business provisions include the reestablishment of Opportunity Zones for 2027 through 2033, with a focus on rural areas, and the limitation of amortization deductions for sports franchises to 50% of the adjusted tax basis.


Tax-Exempt Provisions

For tax-exempt organizations, the bill proposes an increased excise tax on private university endowments and private foundations. The current 1.4% excise tax on net investment income of private colleges is replaced with a tiered system, with rates reaching as high as 21% for institutions with significant endowments. Private foundations face a similar tiered excise tax system based on asset size.


Individual Provisions

Individuals will see the maximum ordinary income tax rate of 37% made permanent. The standard deduction is increased for various filing statuses from 2025 to 2028. The bill also proposes the permanent repeal of the personal exemption and adjustments to itemized deduction limits.


Additionally, the bill introduces the concept of “MAGA” accounts, tax-exempt trust accounts for U.S. citizens under 18, with a one-time $1,000 federal credit for eligible children born between 2025 and 2028.


For a detailed breakdown of these provisions, refer to the original article on Tax Talks. This comprehensive analysis explores the implications of the bill across various sectors, providing insights into its potential impact on the economic landscape.

More Articles

Getting licensed or staying ahead in your career can be a journey—but it doesn’t have to be overwhelming. Grab your favorite coffee or tea, take a moment to relax, and browse through our articles. Whether you’re just starting out or renewing your expertise, we’ve got tips, insights, and advice to keep you moving forward. Here’s to your success—one sip and one step at a time!

As Wildfire Season Intensifies, AI Becomes a Key Tool for Experts

With each passing year, the threat of wildfires looms larger, fueled by the relentless march of climate change. AI technologies are emerging as game-changers in wildfire detection and management, providing real-time identification and valuable insights.

New Affordable Housing Project Proposed in Eastmont, Oakland

Eden Housing's proposal is part of a broader initiative to redevelop the underutilized land surrounding the Eastmont Town Center, a hub for shopping and social services in East Oakland.

Innovative Solutions to California’s Housing Crisis

In the heart of California, a state renowned for its innovation and economic prowess, a housing crisis looms large. The demand for housing far exceeds the supply, leading to skyrocketing costs and a severe affordability gap.

Housing Market Challenges and Prospects for 2024: A Comprehensive Overview

The housing market in 2024 continues to be a battleground, with sellers maintaining the upper hand due to persistently low inventory levels. Despite a slight dip in mortgage rates, which have decreased to 7.09% from their peak, they remain high enough to deter potential buyers.

By |October 17, 2024|Categories: Article, Economic Forecasting, Real Estate|Tags: , |0 Comments

Navigating Post-Pandemic Challenges in Commercial Real Estate

The ongoing struggles in commercial real estate underscore the need for banks to adapt and innovate in response to evolving market conditions. As the sector navigates these challenges, the focus remains on strategic maneuvers and legislative considerations that will shape its future trajectory.

Addressing America’s Housing Crisis: A New Proposal

The current housing landscape is bleak for many. In most American counties, even a modest one-bedroom apartment is out of reach for minimum-wage workers. The situation is exacerbated by the increasing influence of large financial firms in the housing market, leaving working families to compete in an unfair bidding war.

By |October 17, 2024|Categories: Article, Housing, Legislation|Tags: , |0 Comments