Seven ways Trump’s tax and spending bill could affect Californians

It s more than pages and as it stands now the lately House-passed bill with massive tax breaks and spending cuts has considerable implications for California voters The House of Representatives early Thursday morning after last-minute dealmaking by leadership very narrowly passed what s been dubbed the Big Beautiful Bill that advances President Donald Trump s agenda Related Articles Ramachandran Oakland requirements a custom of enforcement Things to know about no tax on tips Trump s tax pledge that s included in GOP budget bill San Mateo County to require quarterly reports on big-ticket purchases Evan Low-run national LGBTQ nonprofit to receive from Santa Clara County Speaker Johnson and Republicans head to the White House as Trump s tax breaks bill hits trouble No Democrats voted for the bill and only two Republicans broke to vote no Reps Warren Davidson of Ohio and Thomas Massie of Kentucky That means California lawmakers split along party lines in the - vote The massive package is a continuation of the Tax Cuts and Jobs Act provisions spearheaded during the first Trump administration But it also makes vast changes to Medicaid instituting a work requirement for recipients of the healthcare insurance undertaking for low-income people and ups the cap on how much of a deduction taxpayers can claim to offset high state and local tax obligations This bill represents an historic opportunity to deliver economic freedom for working families farmers and small businesses announced Rep Jason Smith a Missouri Republican who chairs the Strategies and Means Committee instrumental in putting together the budget bill Smith s office explained the average California taxpayer would see a tax hike if those provisions from were not continued Yet Democrats warn the package would be detrimental to working-class and lower-income families Rep Dave Min D-Irvine called it the preponderance immoral budget of our time after the vote and Rep Sydney Kamlager-Dove D-Los Angeles called it the Big Backstabbing Bill Still everything in the House-passed package isn t set in stone It still requirements to go through the U S Senate where there have been rumblings of concerns among chosen GOP members about Medicaid cuts For now here s a look at what the spending package could mean for Californians from changes to certain credits to soundness care implications and more SALT cap increases Perhaps one of the greater part closely watched will they won t they provisions of the spending bill was the cap on how much taxpayers can deduct on their federal taxes to offset high local and state taxes called SALT Republicans from high-tax states including California were at loggerheads with House leadership for much of the negotiations outright promising to vote no on the bill unless the cap levied in at was significantly increased But a late-in-the-game proposal got those Republicans including Rep Young Kim R-Anaheim Hills on board The bill ups the cap to for people with incomes up to and is adjusted for inflation annually When the cap was placed on SALT in there was no one in Congress who could explain how it would adversely affect those who live in states with high costs of living California New Jersey and New York stated Kim She reported she made the scenario to House leadership and other colleagues that even though the cap may seem high for their districts in hers it would benefit middle-income families like firefighters and teachers To put it exclusively I needed to keep my promise and that s why it was so major to me to not cave in and continue to fight for what will bring the most of help and relief for my district Kim declared after Thursday s vote I m really happy I was able to deliver for my constituents so they can keep more of their hard-earned money Medicaid work requirements Included in the bill is one of the strictest Medicaid work requirements proposed by Congress Called region engagement requirements the bill mandates that able-bodied adults without dependents work complete public operation or participate in a work project for at least hours a month or be enrolled in an educational campaign Those who are under years old pregnant or receiving postpartum diagnostic care are exempt from the work requirements The Congressional Budget Office a nonpartisan entity that provides analysis for Congress estimated the work requirements would reduce federal spending by billion over a decade But it also revealed that the number of people with vitality care would be reduced by about million Medical initiative research nonprofit KFF estimated based on an early draft of the bill that California could see between million and million in enrollment losses to Medi-Cal California s Medicaid scheme Democrats have strongly decried the Medicaid changes including Rep Mike Levin D-San Juan Capistrano who called the work requirements harsh President Trump and Speaker Johnson are once again putting billionaire donors ahead of everyday Americans at the direct expense of children seniors veterans and working families stated Levin But Kim called those arguments disingenuous saying the changes to Medicaid will ultimately strengthen the campaign for those who need it the the bulk Aside from work requirements she also pointed to the bill s plan to end duplicative payments to patients who sign up for Medicaid in multiple states and attempt to limit the activity only to citizens or those with legal status Gov Gavin Newsom in recent weeks proposed rolling back access to Medi-Cal for low-income immigrants without legal status a year after they were granted such Newsom in recent times suggested no longer accepting new enrollees without legal status into the campaign as a way to alleviate the state s budget woes The federal bill also blocks Medicaid funds for Planned Parenthood which provides abortion services along with other wellbeing care requirements Federal money already cannot pay for abortion services but state Medicaid funds in chosen states including California do Planned Parenthood of Orange and San Bernardino Counties disclosed the cuts would be devastating to the hundreds of thousands of low-income Californians who rely on Planned Parenthood for life-saving cancer screening birth control STI testing and healing and other vital wellbeing care services If Planned Parenthood is defunded then cancers would go undetected STIs go untreated birth control would be harder to get and the population healthcare infrastructure of communities will break down commented Nichole Ramirez senior vice president of communications and donor relations at PPOSBC According to the Associated Press specific Planned Parenthood centers are at pitfall of closing should the cuts remain But Ramirez explained there are no plans at the moment to close any PPOSBC local vitality centers Estate tax exemption continues The bill increases the estate tax exemption threshold to million in adjusted for inflation thereafter Called the death tax by Republicans this is the amount of an estate that would trigger a federal tax when the property is transferred upon a death It generally impacts the wealthiest of estates but Republicans have explained it has also burdened family farms that are often struggling Savings accounts for new parents Parents or guardians who open new so-called Trump savings accounts for their kids with birthdates between Jan and Dec will receive from the federal authorities to put into the account Families can deposit up to a year into the tax-deferred account At age the account holder may access up to half of the money in the account to pay for higher instruction training or first-time home purchases The account holder would then have access to the rest of the money when they reach age This bill was initially called the MAGA accounts a play on Trump s Make America Great Again motto that stood for Money Account for Rise and Advancement but was changed in a Wednesday amendment to the Trump accounts States on the hook more for SNAP Federal food aid through the Supplemental Nutrition and Assistance Scheme would decrease by about billion over a decade In the present the federal executive pays all the benefits and states chip in half for administrative costs But under the bill states would be responsible for of benefit costs starting in fiscal year and of administrative costs SNAP eligibility would also change requiring able-bodied adults without dependents to log hours of work or neighborhood engagement per month until age years longer than under current rules In addition parents who are now exempt from work requirements until their children are may be affected Proposed changes call for exempting only those caring for a dependent child under age According to the California Budget Program Center changes to SNAP could force California to reduce the amount of food aid going to individual recipients or reduce the number of recipients Regardless of the magnitude of the cost-sharing proposal Californians who rely on CalFresh to afford basic food requirements are at hazard of facing reduced benefits or exclusion from the operation entirely which could lead to increased food insecurity and poverty at a time when so several Californians are already struggling with the high costs of living the center mentioned in a document last month Potential tax credits phase out While California has a reputation for aggressively pursuing clean potential Texas and Oklahoma lead the country in wind vigor generation Above the San Gorgonio Pass wind farm between the Freeway and Highway near Palm Springs on Friday Aug Photo by Terry Pierson The Press-Enterprise SCNG Several clean force tax credits are set to end earlier than expected under the current version of this bill That includes the termination of credits related to energy-efficient homes clean electricity production and electric vehicles and phasing out a credit for wind and solar storage A multitude of of the power tax credits had been around for decades and were expanded during the Biden administration according to CNBC The bill endangers our clean air and water will devastate our growing business activity and the jobs that are powering it and open up our nation s precious lands and waters to even more reckless oil and gas drilling declared Kim Orbe the acting director of the Sierra Club Angeles chapter which covers Los Angeles and Orange counties Child tax credit increases and adds requirement The child tax credit which doubled from to during Trump s first administration would remain and even increase temporarily to through before dropping back down to though it would then be adjusted to reflect inflation Smith the chair of the Techniques and Means Committee commented the bill locks in the child tax credit for more than million families and will provide additional tax relief But particular Democrats warned that rule changes would negatively impact the families of millions of children Under the House bill a parent or both parents if filing taxes jointly would need to have a Social Precaution number to claim the credit a new requirement targeting undocumented immigrants This bill assaults those seeking the American dream by stealing tax benefits and services from working people who are paying taxes It would deny the child tax credit to million children who live in the United States Rep Linda S nchez D-Whittier disclosed on the House floor earlier this week Related Articles Ramachandran Oakland necessities a way of life of enforcement Things to know about no tax on tips Trump s tax pledge that s included in GOP budget bill San Mateo County to require quarterly reports on big-ticket purchases Evan Low-run national LGBTQ nonprofit to receive from Santa Clara County Speaker Johnson and Republicans head to the White House as Trump s tax breaks bill hits trouble The Associated Press contributed to this account