Reminder - potential USA tax changes

Unless Congress gets its act together, the 2017 Tax Cut and Jobs Act is going to expire at the end of this year.  It could mean higher taxes for a lot of people.

I found a useful article at Forbes  https://www.forbes.com/sites/kristinmckenna/2024/06/25/major-tax-changes-are-coming-in-2026-are-you-ready/ that outlines what some of the changes would be and how they would play out.

Unless Congress gets its act together, the 2017 Tax Cut and Jobs Act is going to expire at the end of this year.  It could mean higher taxes for a lot of people.

I found a useful article at Forbes  https://www.forbes.com/sites/kristinmckenna/2024/06/25/major-tax-changes-are-coming-in-2026-are-you-ready/ that outlines what some of the changes would be and how they would play out.

That link was published June 2024. The Big Beautiful Bill that was passed by the House recently will, I think,  retain those 2017 tax cuts.

https://en.wikipedia.org/wiki/One_Big_Beautiful_Bill_Act

The bill would extend the major provisions of the 2017 Tax Cuts and Jobs Act, which are set to expire at the end of 2025 and predominantly benefit upper income earners. It includes reductions in non-military government spending and significantly cuts spending on the Supplemental Nutrition Assistance Program (SNAP) and Medicaid through stricter eligibility requirements.

That link was published June 2024. The Big Beautiful Bill that was passed by the House recently will, I think,  retain those 2017 tax cuts.

https://en.wikipedia.org/wiki/One_Big_Beautiful_Bill_Act

Yep, it's an older link.  But the BBB is looking to be in serious trouble, and it's been cut and changed so many times it's almost impossible to know what the final form would be - if it ever does get passed and signed.  Best to keep abreast of things, especially since Elon has gone feral. The link I posted does point out some of the  issues that could be coming down the pipeline.

If it does pass and Trump signs it in the current form, seniors get an additional $4k deduction, which would be nice. But to fund the continued tax "cuts" would mean millions of people would be thrown off of Medicaid, which I'm not comfortable at all about. The conservative republicans are extremely unhappy about the 2.5 trillion (I think) that it would add to the national debt, even with the cuts to Medicaid. So I can't really see this passing in the current form.

But I could be wrong.

Yep, it's an older link.  But the BBB is looking to be in serious trouble, and it's been cut and changed so many times it's almost impossible to know what the final form would be - if it ever does get passed and signed.  Best to keep abreast of things, especially since Elon has gone feral. The link I posted does point out some of the  issues that could be coming down the pipeline.

If it does pass and Trump signs it in the current form, seniors get an additional $4k deduction, which would be nice. But to fund the continued tax "cuts" would mean millions of people would be thrown off of Medicaid, which I'm not comfortable at all about. The conservative republicans are extremely unhappy about the 2.5 trillion (I think) that it would add to the national debt, even with the cuts to Medicaid. So I can't really see this passing in the current form.

But I could be wrong.

I agree with all your comments and I also expect and hope for some big changes included the elimination in the bill of preventing Federal courts from blocking unconstitutional orders.  Whatever gets passed eventually will, I think, extend the tax breaks.

Besides, I pay enough in HMRC taxes to continue to zero out my US taxes even if the taxes go back up.

I'd be most worried about the Section 899 proposal that would substantially increase withholding on US dividends and capital gains
for residents of certain foreign countries (including the UK). Supposedly it excludes US citizens but maybe it won't play out that way.
Amusingly, it's billed as a retaliatory measure for other countries engaging in unfair extra-territorial taxation

I'd be most worried about the Section 899 proposal that would substantially increase withholding on US dividends and capital gains
for residents of certain foreign countries (including the UK). Supposedly it excludes US citizens but maybe it won't play out that way.
Amusingly, it's billed as a retaliatory measure for other countries engaging in unfair extra-territorial taxation

That sounds like it could be a year 1 cash flow problem for those relying on getting the dividends in a timely manner. First year it comes into effect there will be a delay while it is claimed back with a tax return.  After that the tax refund from the previous year will provide the missing cash flow. 

There's also a 3.5% excise tax on foreign remittances. Again supposedly excluding US citizens but implementation will be problematic

There's also a 3.5% excise tax on foreign remittances. Again supposedly excluding US citizens but implementation will be problematic

They really are going after foreigners and are keen to pee off the entire world even more than they already have.

They don't give a squat about foreigners. If anything, they are "anti-foreigner". It's about lining the pockets of a subset of people here, above all.  More from the over 1,100 pages of the bill that I think are just beyond the pale - It:

phases out clean energy tax breaks;

eliminates a $200 tax on gun silencers that has existed since Congress passed the National Firearms Act in 1934. (Just what we need on the streets right now, cheaper silencers. Can't have all those gunshots disturbing people, after all.);

allows the Trump administration to remove the tax-exempt status of nonprofits that it says support terrorism. This is terrorism by whatever definition Trump chooses to apply.

food assistance programs - States would shoulder 5% of benefit costs, beginning in fiscal 2028, and 75% of the administrative costs. Currently, states pay none of the benefit and half of the administration costs. This is out-of-the-blue - not planned for in state budgets. Many states just will not have the money.

mandates that only those caring for a dependent child under the age of 7 are exempt from work requirements for food assistance. In every state I've lived in, if you leave a child under age 12 alone at home to go out and work, you'll end up in jail.

new “community engagement requirements” for Medicaid of at least 80 hours per month of work, education or service for able-bodied adults without dependents. The new requirement would not kick in until Jan. 1, 2029, after Trump leaves office. How people in very rural areas or areas with minimal employment and/or public transit options are going to manage that is kind of beyond me.

prohibits Medicaid funds from going to Planned Parenthood, which provides abortion care - as well as reduced or free cost to people needing to get cancer screenings, pap tests, and birth control. You know, poor people who can't get care elsewhere....