1 00:00:00,370 --> 00:00:02,910 Welcome to Something More with Chris Boyd. 2 00:00:03,170 --> 00:00:05,970 Chris Boyd is a certified financial planner practitioner 3 00:00:05,970 --> 00:00:08,770 and senior vice president and financial advisor at 4 00:00:08,770 --> 00:00:11,050 Wealth Enhancement Group, one of the nation's largest 5 00:00:11,050 --> 00:00:12,670 registered investment advisors. 6 00:00:13,150 --> 00:00:15,090 We call it Something More because we'd like 7 00:00:15,090 --> 00:00:17,210 to talk not only about those important dollar 8 00:00:17,210 --> 00:00:19,390 and cents issues, but also the quality of 9 00:00:19,390 --> 00:00:21,830 life issues that make the money matters matter. 10 00:00:22,230 --> 00:00:25,590 Here he is, your fulfillment facilitator, your partner 11 00:00:25,590 --> 00:00:28,730 in prosperity, advising clients on Cape Cod and 12 00:00:28,730 --> 00:00:29,790 across the country. 13 00:00:30,230 --> 00:00:32,610 Here's your host, Jay Christopher Boyd. 14 00:00:33,410 --> 00:00:35,510 Thank you for joining us for another Something 15 00:00:35,510 --> 00:00:36,710 More with Chris Boyd. 16 00:00:36,790 --> 00:00:39,370 I'm Chris Boyd, certified financial planner practitioner. 17 00:00:39,370 --> 00:00:41,510 I'm here with Jeff Perry, JD. 18 00:00:41,910 --> 00:00:46,750 He is also an advisory representative with Wealth 19 00:00:46,750 --> 00:00:48,990 Enhancement Group and our team is the AMR 20 00:00:48,990 --> 00:00:49,410 team. 21 00:00:50,270 --> 00:00:51,870 And glad to be with you. 22 00:00:51,870 --> 00:00:56,250 Today, we wanted to talk about the one 23 00:00:56,250 --> 00:01:00,950 big, beautiful bill, OBB, it's a law now. 24 00:01:01,610 --> 00:01:03,690 So yeah, OBB, how many B's is that? 25 00:01:04,250 --> 00:01:04,610 Three. 26 00:01:05,630 --> 00:01:08,390 Lots to unpack in this, but it has 27 00:01:08,390 --> 00:01:12,230 passed through the legislative process is now law. 28 00:01:12,850 --> 00:01:14,450 And Jeff, let me ask you to begin 29 00:01:14,450 --> 00:01:16,210 with one of the things I wanted to 30 00:01:16,210 --> 00:01:18,870 investigate is, does all this take effect for 31 00:01:18,870 --> 00:01:20,570 the 2025 tax year? 32 00:01:20,570 --> 00:01:21,510 It does. 33 00:01:22,250 --> 00:01:25,670 Sometimes they go retroactive, but it's, yeah, and 34 00:01:25,670 --> 00:01:28,170 sometimes they start, you know, at a future 35 00:01:28,170 --> 00:01:29,890 date or, you know, that kind of thing. 36 00:01:29,950 --> 00:01:32,270 So that's, well, given the timing in the 37 00:01:32,270 --> 00:01:34,390 year kind of makes sense, it's we're roughly 38 00:01:34,390 --> 00:01:34,850 halfway. 39 00:01:35,330 --> 00:01:39,490 So that is so that changes for a 40 00:01:39,490 --> 00:01:40,010 lot of things. 41 00:01:40,150 --> 00:01:42,850 I assume that they wouldn't because this, although 42 00:01:42,850 --> 00:01:44,790 the bill is effective when he signs it, 43 00:01:44,810 --> 00:01:47,090 it's actually for the October 1st budget. 44 00:01:48,210 --> 00:01:50,530 So I kind of thought it was going 45 00:01:50,530 --> 00:01:54,070 to be effective and, and, and the tax 46 00:01:54,070 --> 00:01:56,930 cut and jobs act expires on 1231. 47 00:01:57,090 --> 00:01:58,250 So I guess I thought it would have 48 00:01:58,250 --> 00:02:00,370 made sense to start it effective then. 49 00:02:00,850 --> 00:02:03,730 But for all the, for all the good 50 00:02:03,730 --> 00:02:06,770 things, I guess people get it this year 51 00:02:06,770 --> 00:02:07,210 as well. 52 00:02:07,630 --> 00:02:10,130 Well, let's highlight, we can, I don't know 53 00:02:10,130 --> 00:02:11,490 where you want to begin, but that's our 54 00:02:11,490 --> 00:02:15,110 mission for this episode is to give you 55 00:02:15,110 --> 00:02:18,810 an overview of the kind of things covered 56 00:02:18,810 --> 00:02:22,550 in the one big beautiful bill act. 57 00:02:23,290 --> 00:02:25,510 And you know, in the coming weeks, we're 58 00:02:25,510 --> 00:02:27,090 going to, I think, want to talk about 59 00:02:27,090 --> 00:02:29,890 this in more depth, put together perhaps a 60 00:02:29,890 --> 00:02:31,410 webinar for clientele. 61 00:02:31,590 --> 00:02:34,130 And when, when we do that, we'll make 62 00:02:34,130 --> 00:02:37,950 it known so that our listeners can enjoy 63 00:02:37,950 --> 00:02:39,350 the benefit from that too. 64 00:02:39,350 --> 00:02:42,790 To get started though, Jeff, where should we 65 00:02:42,790 --> 00:02:43,110 begin? 66 00:02:44,170 --> 00:02:46,510 This wasn't an easy bill to pass. 67 00:02:46,790 --> 00:02:50,470 No, and politically it's a significant achievement for 68 00:02:50,470 --> 00:02:53,010 president Trump and the Republican leadership. 69 00:02:53,410 --> 00:02:55,430 I mean, this was, this is the signature 70 00:02:55,430 --> 00:02:59,350 legislation that the president talked about in the 71 00:02:59,350 --> 00:03:01,530 campaign and you know, the early part of 72 00:03:01,530 --> 00:03:03,010 his first hundred days. 73 00:03:03,390 --> 00:03:05,790 And you know, he hasn't achieved everything certainly 74 00:03:05,790 --> 00:03:08,090 that he wanted to, he's still struggling with 75 00:03:08,090 --> 00:03:10,910 tariffs and you know, there's still two wars 76 00:03:10,910 --> 00:03:12,190 kind of going on. 77 00:03:12,310 --> 00:03:15,130 One definitely and one probably, but so he 78 00:03:15,130 --> 00:03:17,090 hasn't, you know, he can't take a victory 79 00:03:17,090 --> 00:03:19,390 lap across the entire spectrum, but on this 80 00:03:19,390 --> 00:03:22,650 piece of legislation, it's a victory for him. 81 00:03:22,810 --> 00:03:24,970 And it was not without angst. 82 00:03:25,050 --> 00:03:27,450 It was not without the dealing, you know, 83 00:03:27,510 --> 00:03:29,810 the close call in the Senate, right. 84 00:03:30,510 --> 00:03:33,050 He did the vice president to be the 85 00:03:33,050 --> 00:03:33,570 tiebreaker. 86 00:03:33,570 --> 00:03:35,830 Well, we needed to buy the Senator from 87 00:03:35,830 --> 00:03:41,230 Alaska and give her all her Alaskan type 88 00:03:41,230 --> 00:03:45,310 exemptions and you know, this and that and 89 00:03:45,310 --> 00:03:46,750 have the vice president step in. 90 00:03:46,810 --> 00:03:49,130 So it was not a sure thing for 91 00:03:49,130 --> 00:03:50,870 a while, but you know, at the end 92 00:03:50,870 --> 00:03:53,790 of the day and you know, if you're 93 00:03:53,790 --> 00:03:55,990 looking at a, just from this, from a 94 00:03:55,990 --> 00:03:58,990 Trump-ish perspective, he had to do this 95 00:03:58,990 --> 00:04:02,270 now because as you get closer to the 96 00:04:02,270 --> 00:04:04,650 next election, although he's not up for reelection 97 00:04:04,650 --> 00:04:07,550 obviously, but House members, Senate members who are 98 00:04:07,550 --> 00:04:09,470 up for reelection, they get more sensitive to 99 00:04:09,470 --> 00:04:10,210 their particular vote. 100 00:04:10,210 --> 00:04:10,330 Yeah. 101 00:04:10,510 --> 00:04:12,130 I mean, if this was next year, you 102 00:04:12,130 --> 00:04:15,589 got the midterm elections looming and it becomes 103 00:04:15,589 --> 00:04:18,490 harder because then it's more top of mind 104 00:04:18,490 --> 00:04:22,210 and whatever the voting, it becomes the election 105 00:04:22,210 --> 00:04:22,770 issue. 106 00:04:22,770 --> 00:04:26,350 Whereas now there's a year away or so 107 00:04:26,350 --> 00:04:29,750 before you've got the, what's top of mind, 108 00:04:29,890 --> 00:04:31,650 who knows what it'll be a year from 109 00:04:31,650 --> 00:04:32,030 now. 110 00:04:32,490 --> 00:04:32,590 Right. 111 00:04:32,870 --> 00:04:34,530 You know, and then if you're dealing with 112 00:04:34,530 --> 00:04:37,490 it after the midterm election, it might have 113 00:04:37,490 --> 00:04:40,650 a totally different composition of the Congress. 114 00:04:41,070 --> 00:04:41,970 Well, that's very possible. 115 00:04:42,130 --> 00:04:43,550 I mean, as you mentioned, the vice president 116 00:04:43,550 --> 00:04:45,110 had to step into the, for the Senate 117 00:04:45,110 --> 00:04:47,090 and the House is just, as you saw 118 00:04:47,090 --> 00:04:49,470 how close that was with just a three 119 00:04:49,470 --> 00:04:50,750 vote difference, I think. 120 00:04:50,750 --> 00:04:54,510 So yes, this could now, or maybe never, 121 00:04:54,850 --> 00:04:56,430 and he, you know, I don't think we're 122 00:04:56,430 --> 00:04:58,490 going to talk about kind of the big 123 00:04:58,490 --> 00:05:01,830 items in there that the president's agenda got, 124 00:05:01,990 --> 00:05:03,370 you know, he'd get more money for immigration, 125 00:05:03,530 --> 00:05:05,070 he'd get more money for border control, he'd 126 00:05:05,070 --> 00:05:07,310 get more money for the military and the 127 00:05:07,310 --> 00:05:10,550 Golden Dome idea or get that rolling. 128 00:05:11,030 --> 00:05:12,410 So he got some of the big agenda 129 00:05:12,410 --> 00:05:16,970 items funded and then there's a lot of, 130 00:05:17,570 --> 00:05:18,850 you know, depending on your perspective. 131 00:05:18,850 --> 00:05:21,150 You and I were talking about before the 132 00:05:21,150 --> 00:05:24,250 show, the whole notion of the debt ceiling. 133 00:05:25,030 --> 00:05:25,170 Right. 134 00:05:25,350 --> 00:05:26,550 So that's a negative to me. 135 00:05:26,770 --> 00:05:29,370 And I think most conservatives, I'm not going 136 00:05:29,370 --> 00:05:30,570 to say the word Republican anymore. 137 00:05:30,690 --> 00:05:32,810 I'm still a Republican, so don't, that's not 138 00:05:32,810 --> 00:05:33,410 breaking news. 139 00:05:33,570 --> 00:05:36,810 But the Republican Party in control now, I 140 00:05:36,810 --> 00:05:39,530 don't particularly agree with much of their fiscal 141 00:05:39,530 --> 00:05:42,650 stances, many of their fiscal stances. 142 00:05:42,650 --> 00:05:47,910 So this adds $5 trillion to the deficit 143 00:05:47,910 --> 00:05:48,950 over the next 10 years. 144 00:05:49,130 --> 00:05:52,650 And this particular budget bill is 500 to 145 00:05:52,650 --> 00:05:58,330 600 billion more than it was last year. 146 00:05:58,610 --> 00:06:01,710 So this is not a fiscally, in my 147 00:06:01,710 --> 00:06:04,710 opinion, fiscally conservative bill. 148 00:06:05,270 --> 00:06:07,230 There's good things in it, you know, good 149 00:06:07,230 --> 00:06:08,070 things that I like. 150 00:06:08,390 --> 00:06:12,590 But overall, they didn't, the president and his 151 00:06:12,590 --> 00:06:14,970 team, they did not achieve the level of 152 00:06:14,970 --> 00:06:19,850 cuts that I think the American people expected. 153 00:06:20,250 --> 00:06:23,030 As an investor, I look at the issue 154 00:06:23,030 --> 00:06:25,530 of the debt ceiling off the table as 155 00:06:25,530 --> 00:06:27,570 something that provides greater continuity. 156 00:06:28,530 --> 00:06:34,990 There's less angst or anxiety for will the 157 00:06:34,990 --> 00:06:38,310 government make good on its obligations. 158 00:06:38,890 --> 00:06:41,130 So it pushes that off. 159 00:06:41,290 --> 00:06:45,950 I don't dispute your point that we have 160 00:06:45,950 --> 00:06:50,710 a problem long term that we've got this 161 00:06:50,710 --> 00:06:51,490 growing debt. 162 00:06:51,910 --> 00:06:57,210 This bill, this act will probably exacerbate that 163 00:06:57,210 --> 00:06:59,950 problem with the likelihood that we're going to 164 00:06:59,950 --> 00:07:06,470 have increasing debts beyond what we do last 165 00:07:06,470 --> 00:07:10,510 year, $1.8 trillion deficit, something along those 166 00:07:10,510 --> 00:07:10,910 lines. 167 00:07:11,210 --> 00:07:13,970 This doesn't improve on that in any way. 168 00:07:14,050 --> 00:07:15,710 It continues those problems. 169 00:07:16,290 --> 00:07:20,170 You can maybe hope some tariff impact will 170 00:07:20,170 --> 00:07:22,790 help to mute some of that. 171 00:07:23,150 --> 00:07:27,550 But we're talking a fraction of that deficit 172 00:07:27,550 --> 00:07:32,410 that the tariffs may help to offset, not 173 00:07:32,410 --> 00:07:35,190 sufficient to offset the overspending. 174 00:07:35,730 --> 00:07:38,670 And then this extends that challenge. 175 00:07:38,670 --> 00:07:40,870 There's varying numbers. 176 00:07:41,130 --> 00:07:44,850 I think I've seen from $3 to $5 177 00:07:44,850 --> 00:07:48,610 trillion over the next 10 years of additional 178 00:07:48,610 --> 00:07:51,950 spending coming out of this debt. 179 00:07:52,130 --> 00:07:59,570 But ultimately, this isn't the sole issue. 180 00:07:59,910 --> 00:08:03,130 The problem existed before this bill, and the 181 00:08:03,130 --> 00:08:05,310 problem isn't getting any better because of this 182 00:08:05,310 --> 00:08:05,590 bill. 183 00:08:05,690 --> 00:08:06,530 It's still a problem. 184 00:08:06,530 --> 00:08:09,430 We'll have to come back to address at 185 00:08:09,430 --> 00:08:10,430 some point in time. 186 00:08:10,770 --> 00:08:13,630 Well, if the Trump administration is serious about 187 00:08:13,630 --> 00:08:15,810 that, like actually dealing with it, there is 188 00:08:15,810 --> 00:08:17,450 a process to deal with it outside of 189 00:08:17,450 --> 00:08:17,810 the budget. 190 00:08:17,990 --> 00:08:20,050 It's called a reconciliation where they can go 191 00:08:20,050 --> 00:08:21,830 line item by line item. 192 00:08:22,430 --> 00:08:26,350 It's tedious work, and it's not getting things, 193 00:08:26,450 --> 00:08:29,090 which most congressmen are trying to do, right? 194 00:08:29,190 --> 00:08:30,730 They're trying to get things for their district 195 00:08:30,730 --> 00:08:33,169 or for their special interest or things that 196 00:08:33,169 --> 00:08:35,270 they perceive as good for their districts and 197 00:08:35,270 --> 00:08:38,370 the American people, but it's reducing the spending. 198 00:08:38,510 --> 00:08:40,090 So they could go through that process. 199 00:08:40,390 --> 00:08:43,150 It's hard, especially with a very slim majority, 200 00:08:43,690 --> 00:08:46,890 because when you're eliminating things from line items, 201 00:08:47,090 --> 00:08:49,870 you're making someone unhappy. 202 00:08:50,370 --> 00:08:53,190 And I joked about the senator from Alaska, 203 00:08:53,370 --> 00:08:57,370 but a significant number of legislators, that's how 204 00:08:57,370 --> 00:09:00,390 they perceive their job is- Protect their 205 00:09:00,390 --> 00:09:01,670 pork, so to speak. 206 00:09:01,670 --> 00:09:06,770 Right, and there's a hundreds of years debate 207 00:09:06,770 --> 00:09:08,750 about what are you supposed to do? 208 00:09:08,790 --> 00:09:09,830 Are you supposed to do what's good for 209 00:09:09,830 --> 00:09:11,090 your district or good for the country? 210 00:09:12,550 --> 00:09:15,450 Hopefully somewhere those two things can be reconciled, 211 00:09:15,810 --> 00:09:17,390 but it's a tough process. 212 00:09:17,490 --> 00:09:19,090 But there is a process, so we'll see. 213 00:09:19,250 --> 00:09:23,590 But the bill passed in 870 pages of 214 00:09:23,590 --> 00:09:27,730 lots of stuff, and much of it is 215 00:09:27,730 --> 00:09:30,750 - Think everybody got to read it before 216 00:09:30,750 --> 00:09:32,250 they voted on it? 217 00:09:32,270 --> 00:09:33,770 I think they had the opportunity to read 218 00:09:33,770 --> 00:09:33,910 it. 219 00:09:34,110 --> 00:09:35,350 I don't know if they read it. 220 00:09:37,210 --> 00:09:40,930 I guess the headline news is that, for 221 00:09:40,930 --> 00:09:43,110 us anyway, and for most of our clients 222 00:09:43,110 --> 00:09:46,190 and listeners, is the tax cuts of the 223 00:09:46,190 --> 00:09:49,010 tax cut and job DAG are permanently- 224 00:09:49,010 --> 00:09:49,790 Extended. 225 00:09:50,130 --> 00:09:50,610 Extended. 226 00:09:51,190 --> 00:09:53,410 The tax rates are the same. 227 00:09:54,130 --> 00:09:55,970 So- So that's a good thing, just 228 00:09:55,970 --> 00:09:56,770 to review. 229 00:09:57,970 --> 00:10:00,810 With the Tax Cut and Jobs Act, the 230 00:10:00,810 --> 00:10:05,090 signature legislation of the original Trump administration, the 231 00:10:05,090 --> 00:10:11,670 first Trump administration, in that legislative effort, the 232 00:10:11,670 --> 00:10:20,150 tax rates got lower, but the brackets, how 233 00:10:20,150 --> 00:10:22,990 much income you have before you go into 234 00:10:22,990 --> 00:10:26,070 the next rate, got higher. 235 00:10:26,890 --> 00:10:31,770 So for most people, tax rates went down. 236 00:10:32,290 --> 00:10:39,150 In addition to that, the standard deduction was 237 00:10:39,150 --> 00:10:43,370 dramatically increased from the way it worked before, 238 00:10:43,990 --> 00:10:47,770 and we went from an environment where most 239 00:10:47,770 --> 00:10:49,710 people- Well, it wasn't uncommon. 240 00:10:49,950 --> 00:10:53,010 It was very common for people to do 241 00:10:53,010 --> 00:10:58,170 itemized deductions, whereas under the Tax Cut and 242 00:10:58,170 --> 00:11:01,210 Jobs Act, and now furthered with the One 243 00:11:01,210 --> 00:11:04,930 Big Beautiful Bill, most people will choose to 244 00:11:04,930 --> 00:11:07,850 use a standard deduction as the way to 245 00:11:07,850 --> 00:11:12,070 deal with this, rather than itemized deductions, because 246 00:11:12,070 --> 00:11:15,630 they'll actually probably see a better result when 247 00:11:15,630 --> 00:11:16,430 it comes to their tax- Yeah, I'm 248 00:11:16,430 --> 00:11:17,170 one of those people. 249 00:11:17,610 --> 00:11:19,870 We went from itemized to standard deduction. 250 00:11:22,670 --> 00:11:25,370 Do you recall what the numbers were for 251 00:11:25,370 --> 00:11:30,290 the standard deduction for either an individual or 252 00:11:30,290 --> 00:11:30,710 a couple? 253 00:11:32,350 --> 00:11:35,230 It's up to, I think it's $31,500 254 00:11:35,230 --> 00:11:37,410 now for joint, and half of that for 255 00:11:37,410 --> 00:11:41,050 a standard deduction for an individual for 2025. 256 00:11:41,710 --> 00:11:42,170 Nice. 257 00:11:42,750 --> 00:11:46,610 That's a pretty substantial starting point before you'd 258 00:11:46,610 --> 00:11:48,630 have to have any tax burden. 259 00:11:49,990 --> 00:11:53,510 Another thing that may change the itemized part 260 00:11:53,510 --> 00:11:56,770 of it, meaning some people may now go 261 00:11:56,770 --> 00:12:02,370 back to itemized, is in the first President 262 00:12:02,370 --> 00:12:05,090 Trump tax bill, there was something called SALT, 263 00:12:05,130 --> 00:12:08,030 which reduced the amount of state and local 264 00:12:08,030 --> 00:12:10,850 taxes, usually property taxes is the big one 265 00:12:10,850 --> 00:12:14,270 for people, that they were able to deduct. 266 00:12:14,410 --> 00:12:16,590 If you limit that to 10, and your 267 00:12:16,590 --> 00:12:20,330 standard deduction is 30 round numbers, you got 268 00:12:20,330 --> 00:12:22,110 to get a lot of other deductions to 269 00:12:22,110 --> 00:12:22,970 get back to even. 270 00:12:24,450 --> 00:12:28,030 Republicans from blue states with typically high property 271 00:12:28,030 --> 00:12:33,150 taxes fought hard and successfully to not eliminate 272 00:12:33,150 --> 00:12:35,170 the SALT cap, but to put it at 273 00:12:35,170 --> 00:12:35,910 $40,000. 274 00:12:37,190 --> 00:12:40,750 If you have an individual who has deductions, 275 00:12:41,190 --> 00:12:45,430 and especially SALT deductions, that are significant, they 276 00:12:45,430 --> 00:12:48,590 get above that $30,000, they may go 277 00:12:48,590 --> 00:12:49,810 just with property taxes. 278 00:12:51,570 --> 00:12:54,030 You get a couple of homes in blue 279 00:12:54,030 --> 00:12:56,210 states that have high property taxes, and many 280 00:12:56,210 --> 00:12:57,710 of these folks have more than one home, 281 00:12:58,490 --> 00:13:01,650 they'll be back in the itemization team pretty 282 00:13:01,650 --> 00:13:01,990 quickly. 283 00:13:02,310 --> 00:13:05,750 Now you said $30,000, I'd seen somewhere 284 00:13:05,750 --> 00:13:07,350 about $40,000 temporarily. 285 00:13:08,870 --> 00:13:09,450 No, it's $40,000. 286 00:13:09,670 --> 00:13:11,350 If I said $30,000, I misspoke. 287 00:13:13,610 --> 00:13:14,930 So that's a lot. 288 00:13:15,790 --> 00:13:17,990 Much bigger than the $10,000 that it 289 00:13:17,990 --> 00:13:18,650 had been, right? 290 00:13:18,730 --> 00:13:19,190 That's right. 291 00:13:19,830 --> 00:13:21,590 The House originally put the $40,000 in, 292 00:13:21,630 --> 00:13:22,830 the Senate took it out. 293 00:13:24,150 --> 00:13:25,350 But had to pass it with it. 294 00:13:25,590 --> 00:13:27,210 And so that was part of the horse 295 00:13:27,210 --> 00:13:28,210 trading, so to speak. 296 00:13:28,810 --> 00:13:29,070 Yeah. 297 00:13:29,570 --> 00:13:32,710 I think there was also something about the 298 00:13:32,710 --> 00:13:33,930 child tax credit. 299 00:13:34,510 --> 00:13:36,410 Do you know what those details were? 300 00:13:36,470 --> 00:13:37,670 But that went up as well. 301 00:13:37,950 --> 00:13:40,130 Yeah, it went from $1,200 to $2 302 00:13:40,130 --> 00:13:43,550 ,200, a significant credit. 303 00:13:43,850 --> 00:13:45,170 So it's a credit, not a deduction. 304 00:13:45,330 --> 00:13:47,650 I always like to point that out because 305 00:13:47,650 --> 00:13:49,350 it's actually like cash. 306 00:13:50,130 --> 00:13:52,630 Not everyone understands the difference, but a credit 307 00:13:52,630 --> 00:13:56,230 is an actual removal of tax. 308 00:13:56,230 --> 00:14:01,490 It offsets tax, whereas a deduction offsets income. 309 00:14:02,930 --> 00:14:06,810 So essentially, if you said, oh, I had 310 00:14:06,810 --> 00:14:14,350 a $10,000 deduction, but I had $50 311 00:14:14,350 --> 00:14:15,990 ,000 of income. 312 00:14:16,930 --> 00:14:18,930 Oh, it's like I had $40,000 of 313 00:14:18,930 --> 00:14:19,710 income, right? 314 00:14:19,950 --> 00:14:20,210 Right. 315 00:14:20,310 --> 00:14:21,670 And then what's that tax? 316 00:14:21,970 --> 00:14:25,230 Yeah, you have to take the deduction times 317 00:14:25,230 --> 00:14:26,210 your tax rate. 318 00:14:26,210 --> 00:14:29,270 Whereas if you said, oh, I have this 319 00:14:29,270 --> 00:14:32,590 much tax and the credit offsets tax, it's 320 00:14:32,590 --> 00:14:34,630 more powerful is the bottom line. 321 00:14:34,750 --> 00:14:36,530 We like credits more than deductions generally. 322 00:14:36,930 --> 00:14:38,090 Yeah, yeah, it's preferable. 323 00:14:38,390 --> 00:14:42,630 And so there was some criticism by the 324 00:14:42,630 --> 00:14:44,710 left about that this bill would just help 325 00:14:44,710 --> 00:14:45,250 the wealthy. 326 00:14:46,350 --> 00:14:48,770 There's many examples in here that showed that 327 00:14:48,770 --> 00:14:50,790 that's not accurate at all. 328 00:14:50,910 --> 00:14:53,730 And this child tax credit is one of 329 00:14:53,730 --> 00:14:53,830 them. 330 00:14:53,830 --> 00:14:57,070 Another one is the exemption of tips from 331 00:14:57,070 --> 00:14:57,330 income. 332 00:14:57,350 --> 00:15:00,010 Yeah, the president campaigned on this idea of 333 00:15:00,010 --> 00:15:01,190 tips and overtime. 334 00:15:01,570 --> 00:15:03,670 I have to say, when he was campaigning, 335 00:15:03,790 --> 00:15:05,070 I said, no way to the TV. 336 00:15:05,630 --> 00:15:07,190 I did not see that coming either. 337 00:15:07,470 --> 00:15:09,550 I honestly agree with you, Jeff. 338 00:15:09,630 --> 00:15:11,050 I thought it was a lot of rhetoric. 339 00:15:11,450 --> 00:15:17,650 And I've pictured my high school campaigns for 340 00:15:17,650 --> 00:15:18,850 people running for office. 341 00:15:19,250 --> 00:15:20,470 We're going to have longer recess. 342 00:15:20,870 --> 00:15:22,830 We're going to have- Free pizza every 343 00:15:22,830 --> 00:15:23,110 day. 344 00:15:23,110 --> 00:15:26,590 Pizza every day, candy machines in the cafeteria. 345 00:15:26,750 --> 00:15:27,170 You know what I mean? 346 00:15:27,210 --> 00:15:28,370 It was kind of one of those. 347 00:15:29,190 --> 00:15:31,010 But I actually got it through. 348 00:15:31,090 --> 00:15:33,010 Now, I don't know if that is permanent 349 00:15:33,010 --> 00:15:34,350 or I think some of that- It 350 00:15:34,350 --> 00:15:34,870 is not. 351 00:15:35,010 --> 00:15:37,750 Both the tips, the exclusion on the first 352 00:15:37,750 --> 00:15:42,070 $25,000 of tip income, and that does 353 00:15:42,070 --> 00:15:44,590 have a limit of $150,000 of income. 354 00:15:44,770 --> 00:15:47,170 So if you're a high earner and you 355 00:15:47,170 --> 00:15:49,070 happen to get tips, probably not. 356 00:15:49,070 --> 00:15:50,570 But if you happen to be in that 357 00:15:50,570 --> 00:15:53,850 category, it starts to be eliminated at $150 358 00:15:53,850 --> 00:15:54,150 ,000. 359 00:15:54,750 --> 00:15:57,910 So the first $25,000 of tips is 360 00:15:57,910 --> 00:16:00,390 not included in taxable income. 361 00:16:01,110 --> 00:16:04,890 And three years, it ends in 2028. 362 00:16:04,970 --> 00:16:06,950 And the same is for the no tax 363 00:16:06,950 --> 00:16:07,730 on overtime. 364 00:16:07,970 --> 00:16:10,510 And that is limited to $12,500. 365 00:16:11,390 --> 00:16:14,830 And it's also started to be eliminated at 366 00:16:14,830 --> 00:16:15,310 $150,000. 367 00:16:15,310 --> 00:16:20,070 So those are things that, just to put 368 00:16:20,070 --> 00:16:23,110 it out there, that benefit the not rich, 369 00:16:23,290 --> 00:16:23,650 generally. 370 00:16:24,150 --> 00:16:24,710 Generally. 371 00:16:25,490 --> 00:16:26,970 I would say that's true, yeah. 372 00:16:27,250 --> 00:16:30,290 Another thing in that category is the $6 373 00:16:30,290 --> 00:16:35,170 ,000 deduction for seniors 65 and older. 374 00:16:35,430 --> 00:16:35,990 And that's affected- Yeah. 375 00:16:36,130 --> 00:16:37,850 So let's talk about that for a second. 376 00:16:38,150 --> 00:16:42,130 The president campaigned on the idea of having 377 00:16:42,130 --> 00:16:44,750 social security not subject to tax, essentially. 378 00:16:46,010 --> 00:16:48,790 And that was something that proved difficult to 379 00:16:48,790 --> 00:16:49,750 actually implement. 380 00:16:50,770 --> 00:16:53,410 So this was sort of their alternative way 381 00:16:53,410 --> 00:16:57,110 to offer something close to that, essentially. 382 00:16:57,270 --> 00:16:58,310 Wasn't that the gist of it? 383 00:16:58,390 --> 00:16:58,810 I think so. 384 00:16:58,910 --> 00:16:59,550 I think that's right. 385 00:17:00,730 --> 00:17:02,050 And so how does this work? 386 00:17:03,329 --> 00:17:05,349 It's phased out by the more you make, 387 00:17:05,410 --> 00:17:05,630 right? 388 00:17:05,750 --> 00:17:08,089 So if there's an element of... 389 00:17:08,089 --> 00:17:13,310 Certain people will get this $6,000 deduction 390 00:17:13,310 --> 00:17:17,270 to help offset taxes on their social security. 391 00:17:17,730 --> 00:17:18,030 That's right. 392 00:17:18,230 --> 00:17:21,069 But if you make over certain amounts, you 393 00:17:21,069 --> 00:17:23,369 might lose that, essentially. 394 00:17:23,690 --> 00:17:24,770 And that's why I put it in this 395 00:17:24,770 --> 00:17:28,170 category of things not for the rich, right? 396 00:17:28,590 --> 00:17:28,910 Yeah. 397 00:17:29,710 --> 00:17:30,230 Yeah. 398 00:17:30,910 --> 00:17:33,310 I don't have in front of me anything 399 00:17:33,310 --> 00:17:35,950 about where those details are right now. 400 00:17:36,050 --> 00:17:36,750 Do you have that? 401 00:17:36,910 --> 00:17:38,190 Or is that something- I don't have 402 00:17:38,190 --> 00:17:39,290 the income limit. 403 00:17:39,430 --> 00:17:42,570 Yeah, we'll get into the granular stuff in 404 00:17:42,570 --> 00:17:45,410 a future seminar webinar that we'll do. 405 00:17:45,830 --> 00:17:47,490 We'll be able to detail that. 406 00:17:47,810 --> 00:17:50,270 Before we shift into... 407 00:17:50,270 --> 00:17:51,510 I don't know where we're going next, whether 408 00:17:51,510 --> 00:17:54,950 we're going to 529s and those things. 409 00:17:55,070 --> 00:17:58,590 But two other things that impact people of 410 00:17:58,590 --> 00:18:02,370 modest income is car loan interest now. 411 00:18:02,430 --> 00:18:03,690 If you take a loan on a new 412 00:18:03,690 --> 00:18:05,730 car that is assembled in the United States. 413 00:18:05,730 --> 00:18:07,170 I guess we're not ready to say made 414 00:18:07,170 --> 00:18:07,990 in the United States. 415 00:18:08,310 --> 00:18:08,410 Yeah. 416 00:18:08,590 --> 00:18:08,870 Okay. 417 00:18:09,010 --> 00:18:10,650 Assembled in the United States. 418 00:18:10,790 --> 00:18:12,390 A new car, not a used car. 419 00:18:12,710 --> 00:18:13,370 That's correct. 420 00:18:13,650 --> 00:18:16,550 So it's designed to encourage people to buy 421 00:18:16,550 --> 00:18:18,570 American assembled cars. 422 00:18:19,910 --> 00:18:21,730 Because, hey, we have a lot of Toyotas 423 00:18:21,730 --> 00:18:22,870 made in the United States. 424 00:18:23,010 --> 00:18:24,370 It's assembled in the United States. 425 00:18:24,810 --> 00:18:27,330 Anyway, car loan interest, which used to be 426 00:18:27,330 --> 00:18:31,010 deductible a while ago, is now deductible, again, 427 00:18:31,070 --> 00:18:34,670 up to $10,000, meaning $10,000 of 428 00:18:34,670 --> 00:18:35,430 interest payments. 429 00:18:35,730 --> 00:18:38,770 Well, with interest rates rising, that could be 430 00:18:38,770 --> 00:18:39,490 helpful, right? 431 00:18:40,430 --> 00:18:43,850 It's an incentive to buy a new car 432 00:18:43,850 --> 00:18:46,650 assembled in the United States and take a 433 00:18:46,650 --> 00:18:46,870 loan. 434 00:18:47,190 --> 00:18:48,570 I mean, most people have to take a 435 00:18:48,570 --> 00:18:48,770 loan. 436 00:18:49,570 --> 00:18:51,590 Most people of modest means do take loans 437 00:18:51,590 --> 00:18:52,170 for cars. 438 00:18:52,830 --> 00:18:52,970 Yeah. 439 00:18:53,170 --> 00:18:55,290 So again, to your point, more likely to 440 00:18:55,290 --> 00:18:57,710 help some of those people who are not 441 00:18:57,710 --> 00:18:58,210 the rich. 442 00:18:58,610 --> 00:18:58,950 That's right. 443 00:18:59,730 --> 00:19:02,190 But this definitely does have some features that 444 00:19:02,190 --> 00:19:03,790 do help people with wealth. 445 00:19:04,270 --> 00:19:04,450 For sure. 446 00:19:04,450 --> 00:19:05,450 People of means. 447 00:19:07,250 --> 00:19:11,890 We could talk about the estate tax threshold 448 00:19:11,890 --> 00:19:14,930 being maybe changed. 449 00:19:15,750 --> 00:19:18,270 Not really changed, but just extended, I guess, 450 00:19:18,330 --> 00:19:18,870 made permanent. 451 00:19:19,250 --> 00:19:22,610 Slightly higher, but not hugely different, right? 452 00:19:23,130 --> 00:19:25,170 It went up to $15 million, I believe. 453 00:19:25,450 --> 00:19:26,110 $15 million. 454 00:19:26,390 --> 00:19:28,210 It was pretty darn close. 455 00:19:28,410 --> 00:19:28,690 $13. 456 00:19:28,770 --> 00:19:29,530 I think it was $13. 457 00:19:29,810 --> 00:19:31,810 The piece that I liked when I was 458 00:19:31,810 --> 00:19:34,170 reviewing that section, what I liked about it, 459 00:19:34,190 --> 00:19:35,570 and I always like about this because it 460 00:19:35,570 --> 00:19:38,910 prevents or it eliminates the need to adjust 461 00:19:38,910 --> 00:19:39,290 it later. 462 00:19:39,430 --> 00:19:40,690 It's adjusted for inflation. 463 00:19:41,210 --> 00:19:41,330 Yeah. 464 00:19:41,410 --> 00:19:42,090 Thank goodness. 465 00:19:42,290 --> 00:19:42,590 Right. 466 00:19:42,730 --> 00:19:44,890 It takes that issue out of the way. 467 00:19:45,050 --> 00:19:45,190 Yep. 468 00:19:45,810 --> 00:19:46,090 All right. 469 00:19:46,110 --> 00:19:48,790 So in any case, you want to sound 470 00:19:48,790 --> 00:19:49,930 like you want to talk about some other 471 00:19:49,930 --> 00:19:52,310 stuff, like 529 plans or some other things. 472 00:19:52,370 --> 00:19:53,670 What was it you wanted to focus on? 473 00:19:53,690 --> 00:19:55,550 Well, I always like talking about college education 474 00:19:55,550 --> 00:19:56,610 and saving for kids. 475 00:19:56,910 --> 00:20:00,630 So I thought of you when I read 476 00:20:00,630 --> 00:20:01,090 this section. 477 00:20:01,090 --> 00:20:03,730 For 529s, you can now use the money 478 00:20:03,730 --> 00:20:05,650 to become a certified financial planner. 479 00:20:06,110 --> 00:20:06,550 There you go. 480 00:20:07,110 --> 00:20:08,170 And CPA, right? 481 00:20:08,250 --> 00:20:09,210 And CPA, yep. 482 00:20:09,450 --> 00:20:12,830 Oh, and I think other post-secondary certifications 483 00:20:12,830 --> 00:20:13,290 broadly. 484 00:20:14,310 --> 00:20:17,270 The summary that I read had those two 485 00:20:17,270 --> 00:20:17,930 as examples. 486 00:20:18,690 --> 00:20:21,050 But there's lots of times you're done with 487 00:20:21,050 --> 00:20:22,090 the college and you don't really- You 488 00:20:22,090 --> 00:20:23,630 have some money left over, huh? 489 00:20:23,690 --> 00:20:23,930 Right. 490 00:20:23,950 --> 00:20:27,330 And maybe you don't need another degree, but 491 00:20:27,330 --> 00:20:29,910 a certain certification like a CFP or a 492 00:20:29,910 --> 00:20:30,410 CPA. 493 00:20:30,410 --> 00:20:32,690 I mean, they're endless in different professions. 494 00:20:32,850 --> 00:20:34,210 I'm not going to try to- Very 495 00:20:34,210 --> 00:20:34,530 good. 496 00:20:34,950 --> 00:20:37,090 Yeah, so that makes it a little more 497 00:20:37,090 --> 00:20:37,310 helpful. 498 00:20:37,450 --> 00:20:40,110 Is it only for the obtaining of those 499 00:20:40,110 --> 00:20:41,170 designations? 500 00:20:41,390 --> 00:20:42,770 Or was it for like if I have 501 00:20:42,770 --> 00:20:45,750 CE costs, can I use it for- 502 00:20:45,750 --> 00:20:47,310 I think it's to obtain the credentials. 503 00:20:47,610 --> 00:20:48,510 To obtain the credentials. 504 00:20:48,650 --> 00:20:51,390 Yeah, I don't think you can keep your 505 00:20:51,390 --> 00:20:53,890 CEs going for the next 30 years. 506 00:20:54,790 --> 00:20:55,590 Okay, oh well. 507 00:20:55,590 --> 00:20:59,630 And the Trump account, which I thought when 508 00:20:59,630 --> 00:21:01,010 I saw that, I said, no way. 509 00:21:01,110 --> 00:21:03,030 And actually, I'm against this. 510 00:21:03,150 --> 00:21:05,610 I'm philosophically against just giving. 511 00:21:06,390 --> 00:21:08,530 We started off the segment by talking about 512 00:21:08,530 --> 00:21:09,550 how much debt we had. 513 00:21:10,370 --> 00:21:12,370 So let's give every child born $1,000. 514 00:21:12,990 --> 00:21:16,270 I mean, it's like saying in your household, 515 00:21:16,510 --> 00:21:18,650 we got big credit card bills. 516 00:21:19,570 --> 00:21:21,810 We're late on our car payment, but we're 517 00:21:21,810 --> 00:21:22,530 going to a wedding. 518 00:21:22,630 --> 00:21:23,910 Let's give them $1,000. 519 00:21:23,910 --> 00:21:27,950 You know, it's just, it's great. 520 00:21:28,350 --> 00:21:29,910 I mean- It's nice, but it may 521 00:21:29,910 --> 00:21:31,570 be not the most responsible. 522 00:21:31,770 --> 00:21:33,650 Would you elaborate on what a Trump account 523 00:21:33,650 --> 00:21:34,170 is? 524 00:21:34,450 --> 00:21:36,690 So it's a tax preferred, they're calling it 525 00:21:36,690 --> 00:21:40,350 savings for children, with an initial $1,000 526 00:21:40,350 --> 00:21:43,550 federal subsidy for every child born in these 527 00:21:43,550 --> 00:21:44,450 three years again. 528 00:21:45,030 --> 00:21:47,730 25, 26, well, 25 through 28. 529 00:21:47,790 --> 00:21:48,790 I guess that's four years. 530 00:21:50,090 --> 00:21:54,630 So does it require something of the family 531 00:21:54,630 --> 00:22:01,130 to create the account, to add money for 532 00:22:01,130 --> 00:22:03,490 it to be also provided by the government? 533 00:22:03,770 --> 00:22:04,730 Not add money, no. 534 00:22:04,790 --> 00:22:07,350 The $1,000 is a gift, and it 535 00:22:07,350 --> 00:22:09,950 has to be, and this is left to 536 00:22:09,950 --> 00:22:12,750 promulgate regulations and policies by the treasury. 537 00:22:12,890 --> 00:22:14,630 It's not specific in the bill, but there 538 00:22:14,630 --> 00:22:16,010 will be approved institutions. 539 00:22:16,730 --> 00:22:19,210 You know, the commentary is it will probably 540 00:22:19,210 --> 00:22:21,190 be- Like a 529 plan or something. 541 00:22:21,250 --> 00:22:23,950 Right, it will be banks, brokerage, mutual funds. 542 00:22:24,350 --> 00:22:25,990 And it has to be in, the bill 543 00:22:25,990 --> 00:22:30,330 says the diversified index fund of equities. 544 00:22:32,110 --> 00:22:34,890 So $1,000 initially, the parents can put 545 00:22:34,890 --> 00:22:39,190 in up to $5,000 each year. 546 00:22:39,410 --> 00:22:40,910 The $1,000 is the one time- 547 00:22:41,110 --> 00:22:41,530 Annually. 548 00:22:42,330 --> 00:22:45,530 And this money is tax deferred while it's 549 00:22:45,530 --> 00:22:45,950 in there. 550 00:22:46,770 --> 00:22:48,710 What happens when I take the money out? 551 00:22:48,850 --> 00:22:50,250 And is there a limit as to when 552 00:22:50,250 --> 00:22:51,330 I can take that money out? 553 00:22:51,670 --> 00:22:55,770 So second question first, I tried to find 554 00:22:55,770 --> 00:22:59,590 out, but the details, I wasn't able to 555 00:22:59,590 --> 00:23:00,270 find out. 556 00:23:01,510 --> 00:23:03,970 So, you know, many, we know this- 557 00:23:03,970 --> 00:23:05,550 I'm sure it's intended to be for long 558 00:23:05,550 --> 00:23:07,970 -term, you know, maybe, you know, college or 559 00:23:07,970 --> 00:23:10,270 something like that, but long-term use. 560 00:23:11,530 --> 00:23:13,410 I don't know the answer to that. 561 00:23:14,250 --> 00:23:19,870 But if it is available soon, we know, 562 00:23:20,090 --> 00:23:23,310 sadly, that many people will take it out 563 00:23:23,310 --> 00:23:24,370 as soon as it's available. 564 00:23:24,790 --> 00:23:25,810 Sure, sure. 565 00:23:25,890 --> 00:23:27,250 Taken out, we just know that. 566 00:23:27,570 --> 00:23:29,570 Anything that's given to you, you tend to 567 00:23:29,570 --> 00:23:31,610 not treat it with the same value. 568 00:23:31,890 --> 00:23:34,330 And, you know, people who need the money, 569 00:23:34,450 --> 00:23:34,970 need the money. 570 00:23:35,590 --> 00:23:36,410 Yeah, yeah. 571 00:23:36,950 --> 00:23:40,330 Yeah, so there's all types of commentary, you 572 00:23:40,330 --> 00:23:41,610 know, and we like to do this too. 573 00:23:41,710 --> 00:23:45,910 If you leave that $1,000 there for 574 00:23:45,910 --> 00:23:50,070 60 years, you know, it'd be $340,000 575 00:23:50,070 --> 00:23:52,910 at typical stock market performance. 576 00:23:53,190 --> 00:23:56,810 And so the idea is for college or 577 00:23:56,810 --> 00:23:58,750 for, you know, the beginning of a retirement 578 00:23:58,750 --> 00:24:00,090 account someday. 579 00:24:00,590 --> 00:24:04,270 So let's see, let's see the regulations and 580 00:24:04,270 --> 00:24:05,050 how it all works. 581 00:24:05,190 --> 00:24:07,990 But for some, it will be a wonderful 582 00:24:07,990 --> 00:24:08,350 gift. 583 00:24:08,350 --> 00:24:10,910 And for some, it'll be a temporary three 584 00:24:10,910 --> 00:24:12,630 -day cruise to the Bahamas, I guess. 585 00:24:13,890 --> 00:24:14,690 Yeah, yeah. 586 00:24:15,130 --> 00:24:18,790 All right, well, here's the AI quick copilot 587 00:24:18,790 --> 00:24:19,530 response. 588 00:24:20,290 --> 00:24:22,450 At age 18, up to half the account's 589 00:24:22,450 --> 00:24:25,190 value can be withdrawn for approved purposes, such 590 00:24:25,190 --> 00:24:29,390 as higher education, job training, starting small business 591 00:24:29,390 --> 00:24:31,170 or purchase of a first home. 592 00:24:32,730 --> 00:24:35,890 Withdrawals for non-qualified expenses will be taxed 593 00:24:35,890 --> 00:24:38,430 as ordinary income and may incur penalties. 594 00:24:38,450 --> 00:24:40,710 At age 25, the full balance can be 595 00:24:40,710 --> 00:24:43,510 accessed for qualified purposes. 596 00:24:44,150 --> 00:24:47,410 Non-qualified withdrawals will be taxed as ordinary 597 00:24:47,410 --> 00:24:49,730 income and may incur penalties. 598 00:24:49,730 --> 00:24:53,230 At age 31, the account terminates and all 599 00:24:53,230 --> 00:24:57,390 funds will be fully accessible for any purpose 600 00:24:57,390 --> 00:24:59,510 taxed as capital gains. 601 00:25:00,610 --> 00:25:02,830 Okay, well, it's a preferred tax. 602 00:25:02,890 --> 00:25:04,410 That's why they use the word preferred, I 603 00:25:04,410 --> 00:25:07,170 guess, preferred tax treatment, because typically capital gains 604 00:25:07,170 --> 00:25:08,450 are less than income taxes. 605 00:25:08,610 --> 00:25:09,750 Yeah, so that's funny. 606 00:25:09,830 --> 00:25:11,430 If you wait till the end, it's capital 607 00:25:11,430 --> 00:25:11,570 gains. 608 00:25:11,590 --> 00:25:13,290 I got to say a real side note, 609 00:25:13,390 --> 00:25:13,730 a tangent. 610 00:25:13,910 --> 00:25:15,990 You are becoming Mr. AI. 611 00:25:16,790 --> 00:25:20,210 I'm enjoying the use of copilot in our 612 00:25:20,210 --> 00:25:23,150 work environment, chat GPT, and maybe outside. 613 00:25:23,790 --> 00:25:25,070 I've got to catch up. 614 00:25:25,170 --> 00:25:26,350 And when I was looking for the answer, 615 00:25:26,430 --> 00:25:28,870 I was just looking the normal way, Googling, 616 00:25:29,010 --> 00:25:31,830 and I should have just asked copilot. 617 00:25:32,090 --> 00:25:33,010 There you go. 618 00:25:33,010 --> 00:25:36,770 Although, side note, copilot is not copilot, but 619 00:25:36,770 --> 00:25:39,490 some of the AI is having issues. 620 00:25:39,690 --> 00:25:39,910 I don't know. 621 00:25:39,930 --> 00:25:41,470 Well, it's not always accurate to your point. 622 00:25:41,790 --> 00:25:42,570 Yeah, I don't know if you saw the 623 00:25:42,570 --> 00:25:45,450 story from this week, but X had a 624 00:25:45,450 --> 00:25:48,910 major meltdown on their AI, where it started 625 00:25:48,910 --> 00:25:50,790 making anti-Semitic comments. 626 00:25:51,170 --> 00:25:51,910 Oh, geez. 627 00:25:52,370 --> 00:25:54,270 And it did it all night. 628 00:25:55,310 --> 00:25:56,990 Well, I don't know about you, but I 629 00:25:56,990 --> 00:26:01,070 tend to be very polite to my AI, 630 00:26:01,070 --> 00:26:03,310 just in case when they take over the 631 00:26:03,310 --> 00:26:05,330 world, they might say, well, that guy was 632 00:26:05,330 --> 00:26:05,890 always polite. 633 00:26:06,650 --> 00:26:08,010 Please and thank you. 634 00:26:08,630 --> 00:26:11,190 Are you assuming AI is going to write 635 00:26:11,190 --> 00:26:12,430 your obituary someday? 636 00:26:13,390 --> 00:26:17,350 What's the Terminator kind of thing? 637 00:26:17,610 --> 00:26:17,850 Yeah. 638 00:26:17,930 --> 00:26:18,090 All right. 639 00:26:18,090 --> 00:26:20,650 Back to the one big, beautiful bill. 640 00:26:23,070 --> 00:26:24,970 These are just a few of the things, 641 00:26:25,130 --> 00:26:27,010 but maybe we should run over some other 642 00:26:27,010 --> 00:26:28,750 big, broad categories. 643 00:26:29,630 --> 00:26:34,890 There were some impact on Medicaid benefits. 644 00:26:35,490 --> 00:26:37,330 That was widely talked about. 645 00:26:38,770 --> 00:26:46,270 The mandate for work or volunteer or education. 646 00:26:46,850 --> 00:26:51,190 80 hours a month, not 80 hours a 647 00:26:51,190 --> 00:26:51,450 week. 648 00:26:51,970 --> 00:26:55,590 80 hours a month, six-month redetermination. 649 00:26:57,570 --> 00:26:59,890 So, those are a couple of things. 650 00:27:00,190 --> 00:27:06,530 SNAP, the food stamps program, was previously called 651 00:27:06,530 --> 00:27:07,150 food stamps. 652 00:27:08,130 --> 00:27:14,050 Some reductions there, state cost sharing increases, I 653 00:27:14,050 --> 00:27:14,310 guess. 654 00:27:14,490 --> 00:27:15,070 Is that something? 655 00:27:15,350 --> 00:27:17,570 And it forces the states to work on 656 00:27:17,570 --> 00:27:18,330 the fraud issue. 657 00:27:18,510 --> 00:27:20,510 If a state has more than a 6 658 00:27:20,510 --> 00:27:23,930 % fraud rate, the amount that they have 659 00:27:23,930 --> 00:27:25,110 to contribute goes up. 660 00:27:25,110 --> 00:27:26,870 Except Alaska, by the way. 661 00:27:27,030 --> 00:27:27,850 Except Alaska. 662 00:27:28,190 --> 00:27:29,350 That was part of the deal. 663 00:27:29,650 --> 00:27:31,650 All right. 664 00:27:31,710 --> 00:27:33,410 What about energy? 665 00:27:34,310 --> 00:27:38,010 There were some changes in some of the 666 00:27:38,010 --> 00:27:42,650 incentives that had been previously legislated when it 667 00:27:42,650 --> 00:27:47,350 comes to things like solar and the like. 668 00:27:47,650 --> 00:27:49,930 For the most part, the way I read 669 00:27:49,930 --> 00:27:52,570 it is they're evaporating right before your eyes. 670 00:27:52,570 --> 00:27:57,010 The Clean Vehicle Credit, which was a significant 671 00:27:57,010 --> 00:28:00,270 reason that people purchased electric vehicles, is now 672 00:28:00,270 --> 00:28:00,930 expiring. 673 00:28:01,350 --> 00:28:02,410 They moved up the date. 674 00:28:02,490 --> 00:28:04,470 It expires September 30th now. 675 00:28:05,790 --> 00:28:10,810 And also the credits, if you will, for 676 00:28:10,810 --> 00:28:15,610 people doing home improvements and doing all those 677 00:28:15,610 --> 00:28:16,010 things. 678 00:28:16,110 --> 00:28:20,250 More efficient considerations, not as helpful as it 679 00:28:20,250 --> 00:28:20,510 was. 680 00:28:20,510 --> 00:28:23,930 They were expiring in 2032, I think, and 681 00:28:23,930 --> 00:28:25,410 now they're expiring at the end of the 682 00:28:25,410 --> 00:28:25,670 year. 683 00:28:27,970 --> 00:28:29,270 Is that the kind of thing? 684 00:28:29,310 --> 00:28:31,590 I wonder if there'll be a surge and 685 00:28:31,590 --> 00:28:34,930 stuff before all that gets expired fully. 686 00:28:34,930 --> 00:28:36,130 That's a good point. 687 00:28:36,330 --> 00:28:39,050 I would expect that it would be. 688 00:28:39,690 --> 00:28:39,890 Yeah. 689 00:28:41,190 --> 00:28:43,850 And I'm curious, has that also been an 690 00:28:43,850 --> 00:28:46,030 issue when it comes to automobiles? 691 00:28:48,170 --> 00:28:51,190 I think some of the incentives that were 692 00:28:51,190 --> 00:28:56,050 there for electric vehicles got affected by this 693 00:28:56,050 --> 00:28:56,570 as well. 694 00:28:56,690 --> 00:28:56,790 Yeah. 695 00:28:56,810 --> 00:28:59,670 They moved up the date September 30th of 696 00:28:59,670 --> 00:29:00,070 this year. 697 00:29:00,250 --> 00:29:01,150 September 30th of this year. 698 00:29:01,490 --> 00:29:02,290 Two months. 699 00:29:03,010 --> 00:29:07,250 On another topic, though, defense, border, ICE funding, 700 00:29:07,450 --> 00:29:09,630 they all had some impact. 701 00:29:10,210 --> 00:29:11,490 You touched on some of this, I think, 702 00:29:11,530 --> 00:29:11,870 already. 703 00:29:11,870 --> 00:29:18,330 But that was something like $150 billion added 704 00:29:18,330 --> 00:29:21,710 for defense-related expenses. 705 00:29:24,390 --> 00:29:28,170 And the border, a big topic for the 706 00:29:28,170 --> 00:29:29,190 Trump administration. 707 00:29:30,050 --> 00:29:31,750 More money to finish the wall. 708 00:29:32,070 --> 00:29:35,330 More money for those purposes to secure the 709 00:29:35,330 --> 00:29:35,570 border. 710 00:29:36,610 --> 00:29:37,990 And for personnel, right? 711 00:29:38,470 --> 00:29:39,430 Absolutely, yeah. 712 00:29:39,430 --> 00:29:39,810 Yeah. 713 00:29:40,810 --> 00:29:41,550 What else? 714 00:29:41,770 --> 00:29:43,270 I have a topic of... 715 00:29:46,950 --> 00:29:48,490 It looks like we hit on some of 716 00:29:48,490 --> 00:29:51,050 these things, the debt we talked about a 717 00:29:51,050 --> 00:29:51,510 little bit. 718 00:29:51,730 --> 00:29:55,790 I think for businesses, there's a tremendous benefit 719 00:29:55,790 --> 00:29:58,650 of being able to depreciate. 720 00:29:58,670 --> 00:29:59,950 Oh, depreciate right away. 721 00:30:00,070 --> 00:30:00,310 Right. 722 00:30:00,590 --> 00:30:01,410 Write it off. 723 00:30:01,490 --> 00:30:03,330 I mean, it's not even really like depreciation. 724 00:30:03,490 --> 00:30:05,450 Yeah, it's 100%, wasn't it? 725 00:30:05,450 --> 00:30:10,530 It is 100%, which is very encouraging for 726 00:30:10,530 --> 00:30:14,090 people to buy a new dump truck or 727 00:30:14,090 --> 00:30:14,990 whatever it is. 728 00:30:15,090 --> 00:30:18,030 I saw a special on CNBC on this 729 00:30:18,030 --> 00:30:22,170 topic, but it was solely focused on jets. 730 00:30:24,750 --> 00:30:27,990 Because you could buy, according to the story, 731 00:30:28,150 --> 00:30:29,930 which is accurate, I think, you could buy 732 00:30:29,930 --> 00:30:33,390 a $10 million jet this year, where you 733 00:30:33,390 --> 00:30:35,650 would have to depreciate it previously over like 734 00:30:35,650 --> 00:30:36,850 20 years. 735 00:30:37,010 --> 00:30:39,050 I don't know if I could, but one 736 00:30:39,050 --> 00:30:39,750 might. 737 00:30:42,110 --> 00:30:43,210 Someone could. 738 00:30:43,630 --> 00:30:44,570 Someone could, yeah. 739 00:30:44,850 --> 00:30:45,350 Someone could. 740 00:30:48,190 --> 00:30:49,550 I'm just kind of happy. 741 00:30:49,930 --> 00:30:51,750 So there is things in this bill. 742 00:30:51,770 --> 00:30:52,770 That might be for the wealthy. 743 00:30:52,930 --> 00:30:54,670 There are things in this bill. 744 00:30:54,890 --> 00:30:58,530 And the accelerated depreciation or the instant depreciation 745 00:30:58,530 --> 00:31:01,790 of capital expenses related to your business is 746 00:31:01,790 --> 00:31:06,990 certainly a big benefit for companies who are 747 00:31:06,990 --> 00:31:09,030 making those purchases. 748 00:31:10,250 --> 00:31:12,750 I think the big point, ultimately, is that 749 00:31:12,750 --> 00:31:13,790 there's a lot in this. 750 00:31:14,130 --> 00:31:15,930 We're going to be doing more review of 751 00:31:15,930 --> 00:31:18,390 the details so that we can share with 752 00:31:18,390 --> 00:31:22,650 our clientele and our listeners some of the 753 00:31:22,650 --> 00:31:24,110 strategies that will come out of this. 754 00:31:24,110 --> 00:31:26,270 Some of the decision-making that might be 755 00:31:26,270 --> 00:31:26,750 altered. 756 00:31:27,150 --> 00:31:31,670 The way we think about planning some tax 757 00:31:31,670 --> 00:31:32,310 strategy. 758 00:31:32,530 --> 00:31:35,430 Naturally, these are important developments. 759 00:31:35,710 --> 00:31:37,610 When you have a major piece of tax 760 00:31:37,610 --> 00:31:41,530 legislation, it can cause you to have to 761 00:31:41,530 --> 00:31:45,390 step back and reassess some of your plans 762 00:31:45,390 --> 00:31:47,530 as it relates to your financial planning. 763 00:31:47,750 --> 00:31:51,510 It can create opportunities to maybe accelerate some 764 00:31:51,510 --> 00:31:54,250 of the things you might have as plans. 765 00:31:54,930 --> 00:31:57,070 And it can cause you to maybe just 766 00:31:57,070 --> 00:31:59,410 sort of think twice about, you know, what 767 00:31:59,410 --> 00:32:00,110 should I be doing? 768 00:32:00,190 --> 00:32:01,150 What shouldn't I be doing? 769 00:32:01,230 --> 00:32:04,850 How do I implement some of the benefits 770 00:32:04,850 --> 00:32:07,530 around these tax changes? 771 00:32:08,370 --> 00:32:12,090 And certainly something we'll be talking more about 772 00:32:12,090 --> 00:32:17,810 as the details become more elaborated upon. 773 00:32:17,810 --> 00:32:22,550 We can then assess and help guide our 774 00:32:22,550 --> 00:32:25,830 clientele with, how does this play into strategy? 775 00:32:26,090 --> 00:32:26,990 For sure. 776 00:32:27,710 --> 00:32:30,570 Every time the federal government passes a new 777 00:32:30,570 --> 00:32:33,050 or changes to the tax bill, it just 778 00:32:33,050 --> 00:32:35,750 makes the profession of CPAs more secure. 779 00:32:36,490 --> 00:32:37,370 That's right. 780 00:32:38,470 --> 00:32:41,270 So much for a simplified tax code. 781 00:32:42,730 --> 00:32:45,910 Yeah, it never seems to really get fully 782 00:32:45,910 --> 00:32:46,530 simplified. 783 00:32:47,190 --> 00:32:49,650 That being said, you know, I think there 784 00:32:49,650 --> 00:32:51,210 are some things that, you know, when it 785 00:32:51,210 --> 00:32:54,010 comes to income under a certain level with, 786 00:32:54,050 --> 00:32:56,030 you get a bigger standard deduction, you got 787 00:32:56,030 --> 00:32:59,510 certain things that can be really advantageous, right? 788 00:32:59,630 --> 00:33:03,790 So it's good to see some aspects of 789 00:33:03,790 --> 00:33:03,950 this. 790 00:33:04,010 --> 00:33:06,650 I think from a simplicity point of view, 791 00:33:07,650 --> 00:33:11,770 will really be pleasantly received, you know, that 792 00:33:11,770 --> 00:33:12,150 kind of thing. 793 00:33:12,150 --> 00:33:17,450 The higher tax brackets, the lower rates, the 794 00:33:17,450 --> 00:33:20,830 standard deduction are all things that were good 795 00:33:20,830 --> 00:33:23,650 benefits out of the original tax cut and 796 00:33:23,650 --> 00:33:24,210 jobs act. 797 00:33:24,270 --> 00:33:26,510 And it's nice to see that extended. 798 00:33:26,690 --> 00:33:30,370 I think that's a virtue for most filers. 799 00:33:30,930 --> 00:33:33,190 For me, the biggest benefit is it's encouraging 800 00:33:33,190 --> 00:33:36,270 and incentivizing people to work, whether it be, 801 00:33:36,370 --> 00:33:37,670 you know, the tax rates is a big 802 00:33:37,670 --> 00:33:39,770 part of that, or whether it be, if 803 00:33:39,770 --> 00:33:43,650 you're on government subsidized healthcare, you have to 804 00:33:43,650 --> 00:33:46,710 do something productive with your life, or whether 805 00:33:46,710 --> 00:33:48,270 it be, if you want to work overtime, 806 00:33:48,390 --> 00:33:49,870 you know, the thing with working overtime is, 807 00:33:49,970 --> 00:33:51,250 oh, half of it goes to taxes. 808 00:33:52,030 --> 00:33:53,330 Now, not so much. 809 00:33:53,790 --> 00:33:56,510 And, you know, it gives our servers and 810 00:33:56,510 --> 00:34:00,670 other people who have, generate money from their 811 00:34:00,670 --> 00:34:03,550 tips, gives them a break and encourages them 812 00:34:03,550 --> 00:34:05,130 to work and maybe drive some more people 813 00:34:05,130 --> 00:34:05,850 into the profession. 814 00:34:05,850 --> 00:34:08,010 So I think it's got a lot of 815 00:34:08,010 --> 00:34:08,870 good policy in it. 816 00:34:08,929 --> 00:34:10,889 I just hope the debt part of it 817 00:34:10,889 --> 00:34:12,989 doesn't crush us in the end. 818 00:34:13,889 --> 00:34:14,670 Yeah, that's a good point. 819 00:34:14,810 --> 00:34:17,150 I think that's something that, you know, as 820 00:34:17,150 --> 00:34:22,250 a reality, I think you commented or maybe 821 00:34:22,250 --> 00:34:24,250 Brian in a prior episode said, you know, 822 00:34:24,270 --> 00:34:27,530 permanent for now until future legislation. 823 00:34:28,190 --> 00:34:29,830 I think that's the reality, the way we've 824 00:34:29,830 --> 00:34:30,730 got to think about this. 825 00:34:30,730 --> 00:34:35,570 This is permanent, but the trajectory with the 826 00:34:35,570 --> 00:34:39,510 debt is going to likely create future tax 827 00:34:39,510 --> 00:34:43,870 legislation again, that will, you know, try to 828 00:34:43,870 --> 00:34:46,889 address that issue that will likely continue to 829 00:34:46,889 --> 00:34:50,010 be in need of attention over time. 830 00:34:50,429 --> 00:34:52,350 And let us not forget Social Security, Medicare, 831 00:34:52,650 --> 00:34:56,110 which reforms and funding for those programs who 832 00:34:56,110 --> 00:34:58,090 are struggling and have a timeframe. 833 00:34:58,090 --> 00:35:00,370 Yeah, less than 10 years on those. 834 00:35:00,710 --> 00:35:01,790 Not addressed at all. 835 00:35:02,130 --> 00:35:03,970 Not addressed at all in this piece of 836 00:35:03,970 --> 00:35:05,250 legislation, which is fine. 837 00:35:05,850 --> 00:35:08,910 But perhaps that will be on the president's 838 00:35:08,910 --> 00:35:10,550 agenda in the near future, hopefully. 839 00:35:10,750 --> 00:35:14,070 I would expect that it will be a 840 00:35:14,070 --> 00:35:19,610 topic of political discourse for the next five 841 00:35:19,610 --> 00:35:20,470 years. 842 00:35:21,210 --> 00:35:23,310 You know, like, what do we got? 843 00:35:23,430 --> 00:35:24,970 It's something like eight years. 844 00:35:25,010 --> 00:35:26,390 Nine years, eight or nine years. 845 00:35:26,410 --> 00:35:26,670 Yeah. 846 00:35:26,670 --> 00:35:30,210 So, you know, we've got two presidential cycles. 847 00:35:30,590 --> 00:35:32,930 We've got lots of congressional. 848 00:35:34,090 --> 00:35:35,830 We're going to be talking about this a 849 00:35:35,830 --> 00:35:37,930 lot over the next 10 years to get 850 00:35:37,930 --> 00:35:38,810 these things done. 851 00:35:39,190 --> 00:35:39,850 I hope you're wrong. 852 00:35:40,150 --> 00:35:42,430 I hope we have some political courage and 853 00:35:42,430 --> 00:35:44,310 find a way to solve the problem before 854 00:35:44,310 --> 00:35:47,610 it's a crisis, but to be determined. 855 00:35:48,350 --> 00:35:49,430 What do you think's likely? 856 00:35:49,730 --> 00:35:52,030 My thoughts or your wish? 857 00:35:55,070 --> 00:35:57,370 Many of my wishes don't turn into reality. 858 00:35:57,950 --> 00:35:59,410 Yeah, we'll see. 859 00:35:59,490 --> 00:36:00,410 Yeah, we'll see. 860 00:36:01,010 --> 00:36:04,070 We can both hope for your optimism, you 861 00:36:04,070 --> 00:36:04,230 know. 862 00:36:04,450 --> 00:36:05,410 I'll try to make it. 863 00:36:05,630 --> 00:36:05,750 All right. 864 00:36:06,170 --> 00:36:07,210 Thank you for listening. 865 00:36:07,430 --> 00:36:09,230 If we can be a resource to you 866 00:36:09,230 --> 00:36:12,270 and thinking about your strategy and your financial 867 00:36:12,270 --> 00:36:16,810 planning, particularly when it comes to integrating not 868 00:36:16,810 --> 00:36:20,330 only the portfolio and the financial plan, but, 869 00:36:20,350 --> 00:36:22,010 you know, how tax issues impact the economy. 870 00:36:22,010 --> 00:36:24,930 You let us be a resource. 871 00:36:25,110 --> 00:36:26,030 Reach out to us. 872 00:36:26,370 --> 00:36:29,450 And until next time, everybody keeps striving for 873 00:36:29,450 --> 00:36:30,110 something more. 874 00:36:53,950 --> 00:36:54,430 8901. 875 00:36:54,650 --> 00:36:58,330 Or send us your questions to amr-info 876 00:36:58,330 --> 00:37:00,270 at wealthenhancement.com. 877 00:37:00,490 --> 00:37:02,390 You're listening to Something More with Chris Boyd 878 00:37:02,390 --> 00:37:03,230 Financial Talk Show. 879 00:37:03,390 --> 00:37:05,850 Wealth Enhancement Advisory Services and Jay Christopher Boyd 880 00:37:05,850 --> 00:37:08,170 provide investment advice on an individual basis to 881 00:37:08,170 --> 00:37:08,710 clients only. 882 00:37:08,870 --> 00:37:10,850 Proper advice depends on a complete analysis of 883 00:37:10,850 --> 00:37:12,050 all facts and circumstances. 884 00:37:12,290 --> 00:37:14,130 The information given on this program is general 885 00:37:14,130 --> 00:37:16,170 financial comments and cannot be relied upon as 886 00:37:16,170 --> 00:37:17,730 pertaining to your specific situation. 887 00:37:17,930 --> 00:37:19,930 Wealth Enhancement Group cannot guarantee that using the 888 00:37:19,930 --> 00:37:21,930 information from this show will generate profits or 889 00:37:21,930 --> 00:37:23,070 ensure freedom from loss. 890 00:37:23,250 --> 00:37:25,410 Listeners should consult their own financial advisors or 891 00:37:25,410 --> 00:37:27,510 conduct their own due diligence before making any 892 00:37:27,510 --> 00:37:28,270 financial decisions.