Kenny Holston and Jessica Koscielniak/CNP / SplashNews.com / Kenny Holston and Jessica Koscielniak/CNP / SplashNews.com Days after the Supreme Court struck down President Donald Trump’s tariffs, the president defended the policy and reiterated during his State of the Union address that he wants tariffs to replace income taxes.“As time goes by, I believe the tariffs paid by foreign countries will, like in the past, substantially replace the modern-day system of income tax, taking a great burden off the peo ...

On Feb. 24, President Donald Trump delivered his highly anticipated State of the Union address to a joint session of Congress. His speech outlined accomplishments and milestones reached since taking office -- e.g., the Dow Jones Industrial Average (DJINDICES: ^DJI), S&P 500 (SNPINDEX: ^GSPC), and Nasdaq Composite (NASDAQINDEX: ^IXIC) have all hit several record-closing highs -- as well as laid out select policy proposals for the upcoming year. Of note, Trump championed tariffs as "one of the primary reas ...

Members of Congress and my fellow Americans, our nation is back bigger, better, richer, and stronger than ever before. One of the primary reasons for our country's stunning economic turnaround, the biggest in history, were the Dow Jones broke 50,000 four years ahead of schedule. Were tariffs.I used these tariffs, took in hundreds of millions of dollars to make great deals for our country, both economically and on a national security basis. Everything was working well. Countries that were ripping us off for ...

Want a lower income-tax bill? Check whether you’re one of millions of Americans who are paying billions of dollars in late-tax penalties to Uncle Sam. https://t.co/sN2bI9D4AB ...

The percentage of income America’s top earners get to keep varies dramatically depending on which state they call home. A new study from GOBankingRates reveals a staggering disparity in both income levels and tax liabilities for the top 5% of earners across the 50 states. The analysis shows that the combined weight of federal, state and FICA taxes can consume nearly half of a paycheck in some areas while leaving significantly more on the table in others. To determine these figures, GOBankingRates used a ...

After nearly a century of trying, Washington state Democrats could finally pass an income tax – but only on 30,000 or so top earners https://t.co/zv83ycCcRW ...

JUST IN: 🇺🇸 PRESIDENT TRUMP CONFIRMS THAT 0% INCOME TAX IS COMING VERY SOON https://t.co/hKV3ZgdxIS ...

Core Viewpoint - Elon Musk warns that California's proposed wealth tax could eventually expand to affect everyone, similar to the historical evolution of income tax [1][3]. Group 1: Wealth Tax Proposal - The proposed 2026 Billionaire Tax Act aims to impose a one-time 5% tax on individuals with over $1 billion in assets, targeting the ultra-wealthy [3]. - The goal of the tax is to raise an estimated $100 billion to fund social programs such as Medi-Cal, public education, and food assistance, particularly in light of potential reductions in federal support [4]. Group 2: Reactions and Implications - Supporters of the tax, including healthcare worker unions, view it as a critical opportunity to utilize extreme wealth for essential services [4]. - Critics, including California Governor Gavin Newsom, express concerns and emphasize the need to protect the state from potential negative impacts of the tax [4].

Core Insights - The U.S. tax system primarily taxes income rather than wealth, allowing billionaires to grow their wealth through asset appreciation without immediate tax implications [2][6] - Billionaires utilize a strategy known as "buy, borrow, die," which involves purchasing appreciating assets, borrowing against them, and passing them to heirs to avoid capital gains taxes [3][5] Taxation Mechanisms - Billionaires do not earn traditional income; their wealth increases through assets like stocks and real estate, which are not taxed until sold [2][4] - When billionaires borrow against their assets, the borrowed money is not considered taxable income, allowing them to access significant funds without incurring tax liabilities [5] - Upon death, assets transferred to heirs receive a "step-up in basis," eliminating prior capital gains taxes and allowing heirs to inherit assets at current market value [5] Tax Rate Comparisons - Capital gains tax rates for billionaires are significantly lower than income tax rates for average Americans, with capital gains taxed at 0%, 15%, or 20% compared to income tax rates of 10% to 37% [6][7] - This disparity in tax treatment is exemplified by Warren Buffett's statement about paying a lower tax rate than his secretary due to the nature of capital gains taxation [6] Real Estate Strategies - Real estate investors can use depreciation to offset taxable income, allowing them to report losses on paper even when properties generate cash flow and appreciate in value [8]

"No Tax on Tips" Bill Overview - The "No Tax on Tips" provision in the "One Big Beautiful Bill" allows tipped employees to deduct up to $25,000 from their federal tax filing each year, starting in 2025 and lasting through 2028 [1][6] - Individuals earning $150,000 or joint filers earning $300,000 are disqualified from this deduction [6] - The IRS has provided penalty relief for the tax year 2025 as taxpayers adjust to the new policy [9] Potential Benefits - The provision is projected to increase average take-home pay for tipped workers by $1,300 per year [2] - Small businesses may benefit from improved employee retention, as replacing a tipped employee is estimated to cost around $8,000 [14][15][16] - Nevada, with approximately 25% of its workforce in tipped jobs, stands to benefit significantly [11][12][13] Criticisms and Concerns - 37% of tipped workers may not benefit as they already face zero federal income tax burden [4] - Low-income households may not benefit and could be negatively impacted by Medicaid and other social services cuts associated with the bill [5] - The policy exacerbates the existing tipping system, which is viewed negatively by nearly 90% of Americans who believe tipping has gotten out of control [3][4] - Experts argue that the bill creates unequal tax treatment compared to other professions [17] - The policy excludes auto gratuities and service charges, which could be shared with the entire staff, not just customer-facing employees [26][27] Alternative Solutions - Some suggest increasing the minimum wage to provide more stable earnings for low-income workers [20] - Eliminating the subminimum wage is proposed as a way to address wage inequality [22] - Innovative pay models, including auto gratuities and service charges, are being explored to ensure fair wages while allowing businesses to thrive [25][26]