I love big tax bills because they show just how corrupt the
system can be! I made money over the
years by reading legislation like this and hopefully finding things that
lobbyists included (they were the ones writing the damned bills – certainly not
the elected legislators who never read what they vote for) for the companies
and industries they represent that I might be able to apply the benefits for
the clients I represented.
The New York Times, on 26 May, 2025, listed six ‘tidbits’ of
interest. Three of them are of ‘real’
interest to me:
Tax breaks for the U.S. Virgin Islands: The United States collects a minimum tax on
income that companies earn overseas.
Since the creation of that tax in 2017, the U.S. Virgin Islands, a
territory, has been treated as a foreign location for the purposes of the tax. This legislation would create a new carve-out
for income earned on the islands, a generous change that is expected to result
in a loss of $833 million in tax revenue over the next decade………….with a little
research, I bet that one could find exactly who lobbied for what and who will currently
benefit from the revenue loss to the U.S.
…….. and what could a company do to ease on in to taking advantage of
this as well…..!
Health Savings Accounts to cover gym clubs! People with health savings accounts could
look forward to a new tax-free use of these funds: gym memberships The bill would allow people to withdraw $500
each year to pay for fitness expenses – sorry, no golf or sailing – but married
couples could set up an HSA solely for a $1,000 tax-free write off for your gym
membership. The Congressional Budget
Office estimates that this is expected to be a $10 billion change.
An investors bonanza:
One of the most expensive provisions of the bill is a deduction to the
owners of ‘pass-through-businesses.
These are companies that rather than paying corporate taxes, pass their
profits to their individual owners to be paid at a lower rate as individual
income tax. The vast majority of
businesses are set up this way and more are going to be set up this way because
of the proposed new legislation. This
legislation not only makes the deduction larger, it also extends it to income
from business development companies which make risky loans to small and medium-sized
firms – it is a popular business piece that according to the CBO, will cost $11
billion over the next decade.
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