Avengers Assemble... Your Taxes! A Cap's Commentary on the New Tax Bill

Liberty Justice and Tax Cuts for All... Well Mostly the First One

Greetings citizens! Captain America here reporting for duty on a battlefield far more complex than any Hydra base: the US tax code. Seems like there's a new 'big beautiful bill' making its way through Congress promising all sorts of goodies. But as my pal Tony Stark would say 'If it's too good to be true it probably is... or involves me somehow.' This time it seems like the 'goodies' are mostly aimed at those who already have a vault full of them.

Millionaires: Because Even Superheroes Need Sidekicks

According to the Tax Policy Center folks pulling in a million or more are looking at a 3% boost in after tax income. Now I'm all for a strong economy but that's like giving Thor a bigger hammer – does he really need it? We're talking an average of $75,000 extra a year for these high earners by 2026. Meanwhile the average American gets a pat on the head and told to keep fighting the good fight. Reminds me of the time I tried to explain internet privacy to Peggy Carter… some things just don't translate.

SALT Bae: Seasoning the Rich?

Ah SALT – the State and Local Tax deduction. It's like a loophole designed by Loki himself. The existing $10,000 cap is going up to $40,000 for those making under $500,000 which sounds decent until you realize the Senate's keeping a 'pass through entity tax' loophole wide open. This lets the wealthy bypass the cap at the state level. Car dealers dentists law partners – they're all in on this. It's like a secret handshake for the financially fortunate. Meanwhile I'm over here trying to figure out how to explain the concept of 'trickle down economics' to Bucky.

Small Business: A Big Deal for Big Wallets

There's a change coming to 'qualified small business stock,' or QSBS. It's supposed to encourage investment in small companies which is a noble goal. The Senate bill wants to raise the threshold to qualify as a 'small business' from $50 million to $75 million and increase the exclusion from $10 million to $15 million. It's enough to make you wanna put 74.9 million into a small business so you can eventually have 749 million. It's like these businesses are growing with Pym Particles!

Estate Tax: Rest In Peace...ful Planning

The estate tax is here to stay folks! The exemption is increasing to $15 million per estate or $30 million for couples. It's a big deal for the ultra wealthy offering some stability in their estate planning. Frankly it's all a bit beyond my pay grade. I'm still trying to figure out how to use a smartphone let alone navigate estate taxes. I just hope it doesn't lead to another fight between Stark and Rogers.

Charity: Some Get Lemons Some Get Lemonade

Here's a mixed bag: good news for lower and middle income folks bad news for wealthy donors. The Senate bill lets those who don't itemize still claim a charitable deduction of up to $1,000 (single) or $2,000 (married). But for the wealthy the value of the charitable deduction decreases. So while we're encouraging the little guy to give we're kind of discouraging the big guy. Reminds me of the time I tried to get Tony to donate to a soup kitchen… Let's just say it involved a lot of convincing and a very large check. Look let's be careful out there and remember taxes may not be as exciting as fighting supervillains but they affect all of us. Until next time keep your chin up and your deductions in order!