Morning Brew Daily Federal Funding Bill's Market Impact & Goodbye to the Penny?
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May 23, 2025 The podcast dives into the economic ripples of a new tax bill projected to deepen the federal deficit. A significant cultural shift occurs with the U.S. discontinuing the penny, raising questions about pricing and its societal impact. The hosts also preview box office hits like 'Mission Impossible' and the 'Lilo & Stitch' remake while keeping an eye on Bitcoin's impressive gains. Meanwhile, Nike faces challenges with sales, making it the 'Dog of the Week.' A mix of serious economic insights and engaging cultural discussions make this a compelling listen.
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GOP Tax Bill's Unequal Benefits
- The GOP tax bill extends Trump's 2017 tax cuts and adds more relief, benefiting over 80% of households by 2026.
- However, the top 20% of earners receive 60% of the tax cuts, deepening wealth inequality.
Tax Bill Raises Deficits, Market Worries
- The bill increases budget deficits by $2.7 trillion over 10 years, alarming bond markets and worsening fiscal concerns.
- Rising bond yields signal higher borrowing costs for government and consumers, affecting mortgages and loans.
End of the Penny in Cash
- The U.S. Treasury will stop minting pennies, saving $56 million annually as coins cost more to make than their value.
- Cash transactions will be rounded to the nearest five cents, while digital payments stay exact.