Radical Personal Finance 1103-Changes From The One Big Beautiful Bill and the New Trump Accounts
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Jul 9, 2025 Dive into the ramifications of recent tax reforms brought by the One Big Beautiful Bill Act. Discover permanent tax brackets, revamped itemized deductions, and the introduction of 'Trump accounts' designed for children's financial futures. Learn how upcoming changes in 2025 will affect business losses and local tax deductions, particularly for families and seniors. Explore the new thresholds for estate taxes and the political branding that influences financial legislation. This episode is packed with insights on adapting your investment strategies!
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US Tax Brackets Reflect Laffer Curve
- The U.S. tax brackets are permanent and reflect a balance known as the Laffer curve, maximizing government revenue without discouraging income generation.
- Despite political party differences, income tax rates have remained consistent because they effectively balance revenue and economic activity.
Prioritize Traditional 401k Contributions
- Prioritize traditional 401k contributions over Roth while working, as tax rates appear stable long-term.
- Carefully evaluate Roth conversions by running math to avoid unfavorable tax impacts.
Use Employer Student Loan Benefit
- Employers can pay up to $5,250 annually towards employee student loans tax-free starting immediately.
- This incentive supports employees by reducing their student debt burden while offering tax benefits for employers.