How President Trump’s budget law will impact Americans
(CBS, KYMA/KECY) - The so-called "One Big, Beautiful Bill" President Donald Trump signed into law last Friday will affect everyone from low income earners to Americans in the top 5%.
According to the nonpartisan Penn Wharton Budget Model, those making less than $18,000 a year, who don't pay much federal taxes but do rely on benefits, stand to lose 2.9% of their income which is almost $900.
For middle-income earners, CBS News business analyst Jill Schlesinger says some will benefit, others won't as it really depends on the specifics.
"If you get tip income, some of your tip income you'll take a deduction for that, if you work overtime, you'll get a deduction for that. If you are a homeowner in a high tax state, the SALT, the state and local tax deduction goes from $10,000 to $40,000," Schlesinger shared.
Other middle-income earners could come out ahead if borrowing money for a car, some of that interest can be written off.
The legislation also permanently increases the child tax credit, and it provides a tax deduction of up to $6,000 for seniors aged 65 and older.
Be aware of many of the provisions, including the tax deduction for seniors and the bigger deduction for state and local taxes are only for the next few years.
