Here’s What You Missed Last Week

Would mean a lot if you could support the Ethos video, that’s how I keep this page/channel going.

Some Initial Context…

I’m going to beat you to the punch here. If you’re expecting an email that validates your negative or positive feelings toward Donald Trump, that’s not what that is.

There is enough of that out there already.

I think it’s super dangerous to think something is good or bad because of a party you belong to.

So instead, my aim is to help you understand what the bill is doing. And arm you with questions that will help you decide if you think this is good or bad.

I’m open to feedback on whether I did a good or bad job remaining neutral, but I promise, that’s where my intentions lay.

What’s in the Big Beautiful Bill (BBB)

This bill is 900 pages. As with any congressional bill, there is a lot of fluff in there.

Here’s my summary of what I see in the bill:

1. Permanent Extension of 2017 TCJA Cuts

The bill keeps the 2017 tax cuts going, which were about to expire in 2025. That means middle-class families get to keep more of their paycheck thanks to lower tax rates and a bigger standard deduction.

2. New Deduction for Tips & Overtime

Middle-income workers can now deduct up to $25,000 in tip and overtime income from their taxes through 2028. This means service and hourly workers get to keep more of their hard-earned extra pay.

3. Auto Loan Interest Deduction

If you buy a U.S.-made car between 2025 and 2028, you can deduct up to $10,000 in auto loan interest if you earn under $100k (single) or $200k (joint). That could save you $1,500–$2,000 a year on your car payments.

4. Boost to Child Tax Credit

The child tax credit is going up from $2,000 to $2,200 per child permanently. For a family with two kids, that means an extra $400 a year in tax savings.

5. Senior Social Security Deduction

Seniors on Social Security can now get a $6,000 tax deduction, helping most of them avoid paying taxes on their benefits. This change means 88% of seniors won’t owe taxes on their Social Security, up from 64% before.

6. SALT Deduction Cap Increase

The SALT deduction cap is rising from $10,000 to $40,000, helping homeowners in high-tax states save more. But it only applies to households making under ~$500k and expires in 5 years.

7. "Trump Accounts" — New Savings Incentive

Newborns will get a one-time $1,000 “Trump account” that’s tax- and investment-free. Families can also contribute up to $5,000 a year, helping jump-start long-term savings.

8. Loss of Benefits, Increased Costs

To pay for the tax cuts, the bill reduces funding for Medicaid and food assistance and adds work requirements. This could lead to higher healthcare costs and weaker local services, especially in lower-income or rural areas.

In short, the bill is aiming to reduce taxes in certain areas at the cost of social programs.

Is this Good or Bad??

Great! Now that I have all that jargon, should I be happy or sad.

Well let me give you the argument for each side. And I’m oversimplifying this argument, but I think sometimes we need to simplify things to start asking better questions.

Conservative:

Imagine you have a normal middle-class worker that is working 50 hours per week. Right now, their income gets ripped apart by taxes that go to fund people who might be taking advantage of the current system to get a “free ride”.

Progressive:

We could be taxing the ultra-wealthy and using that money to pay for some of these programs. By not increasing taxes on that group of people, we’re hurting those who might not be able to work and potentially putting their lives at risk.

Again, these are simplified arguments, I understand these are complex issues.

If you want to make an independent decision on this and not buy into what the media is selling you, here is the question you should ask yourself.

Do you think that the government can play Robinhood and take money from the rich to help the poor?

Or..

Do I think the government is not run effectively and therefore even if they got that extra income it wouldn’t truly benefit those who need it?

Because if you believe the government can play Robinhood, then you should want them to get access to that taxable income so we can support those who need it.

But if you are skeptical of what the government will do with that money, then instead you shouldn’t want anyone to pay taxes and we should be focused on alternative ways we can help those in need.

I know I normally don’t get political, and this was a bit nerve-wracking to write, given the political environment.

I’m open to hearing your thoughts if you want to reply to this email, I just ask that we keep everything civilized.

Thanks,