Becker Private Equity & Business Podcast
The New Tax Bill: 16 Quick Notes – No Editorial Opinions 5-23-25
Fri, 23 May 2025
In this episode, Scott Becker breaks down 16 major elements of the newly passed tax bill, including changes to deductions, child tax credits, estate tax exemptions, and more.
Chapter 1: What are the key points of the new tax bill?
This is Scott Becker with the Becker Private Equity and Business Podcast. Today's discussion is the tax bill, 16 quick notes, no editorial opinions. So we're going to try and just walk through 16 thoughts or concepts on the tax bill. Just as an aside, recently passed 7 million downloads on the Becker Private Equity Business Podcast.
Chapter 2: How long is the tax bill?
And recently ranked number one on the Apple Business News Report for Business Podcast. So God bless that and thank you. So here are 16 points in the tax bill. First, the bill is more than 1,000 pages long. So it's going to take some time to really get through a full analysis of it and really understand it, even with all the AI tools and everything else as to what's really relevant and not.
Chapter 3: What was the vote count for the bill's passage?
Second, the bill passed the House by just one vote. It still needs to pass the Senate. Then the two bills got to be reconciled. No easy route to do this. It passed the House by 215 to 214, which is really barely passing. And that's with keeping most of the Republican votes intact. Third, the bill is expected to increase the deficit by nearly $3 trillion over the next 10 years.
Chapter 4: How much will the tax bill increase the deficit?
Some analysts project closer to $4 trillion plus. Fourth, it largely extends tax cuts from the original first Trump administration bill, which was passed in 2017. So it largely starts by keeping those tax cuts in place. Fifth, it goes much less far in cutting Medicaid than originally feared by the healthcare community.
Chapter 5: What tax cuts are extended by the new bill?
It largely focuses on work and trying to require work requirements and also testing eligibility for Medicaid versus necessarily actual cuts. It does disallow coverage for illegal immigrants. Sixth, it adds $4,000 to the standard deduction for seniors. This is intended to help protect seniors from being taxed on Social Security up to certain incomes.
Chapter 6: What changes are made to Medicaid in the new tax bill?
This additional deduction phases out at higher incomes. Seventh, the bill increases the child care credit to $2,500 from $2,000. Eighth, The bill also increases the estate plan exemption by around another million dollars to $15 million per person or $30 million per couple. That means you get to exempt from estate tax up to $30 million of your estate.
Ninth, it increases the state and local tax deductions, the exemption, to $40,000 from $10,000, i.e. the SALT exemptions. So that goes up. It also curtails some of the things that people were doing to work around those SALT exemptions. Tenth, it largely eliminates electric vehicle credits with some minor exceptions. Eleven, the bill eliminates taxes on tips with certain limits still to be defined.
And this is the concept that was talked about a lot on the campaign trail, getting rid of taxes on tips. Twelve, the bill also eliminates taxes on overtime with certain limits. The concept that you could get paid for overtime over a certain amount of hours per week, and you don't get taxed on that. Thirteenth, the bill includes a deduction for interest on U.S. cars. So if you're buying a U.S.
car built here with financing, you get deductions on that up to a certain amount. Fourteenth, the bill also doubles the standard exemption. Fifteenth, The bill includes permission to increase the deficit by another $4 trillion. This, again, is intended. This will increase the deficit, will give allowance to increase the deficit of $36 to $40 trillion.
And finally, 16, the bill also includes several challenges in tax provisions aimed at tax-exempt organizations and university and other endowments. Again, those are 16 core notes on the new tax bill that was passed by the Republican majority Senate and inspired or encouraged by President Trump. But we'll see how this plays out.
Thank you for listening to the Becker Private Equity and Business Podcast. Thank you very much.
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