
2025 7-07 Matters of Democracy OBBB fallout, winners and losers.
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The House approved the budget with a 218-214 vote, indicating a narrow margin. Two Republicans, Brian Fitzpatrick (PA) and Thomas Massie (KY), crossed the aisle to vote with Democrats. Freedom Caucus: Despite "big, bold words on the budget and the deficit," the Freedom Caucus "folded like a lawn chair," Speaker Mike Johnson (R-LA) is largely seen as having played a limited role in shaping the final legislation or bringing holdouts into line.
Multiple groups, including the Women's March, planned "at least 200 events" across the country on Independence Day, similar in scale to "No Kings Day." The protests focus on "freeing the United States from rule by and for billionaires" and correctly anticipated Trump signing the budget bill.
OBBB: Winners:
Multimillionaires & Wealthy Americans: "the ability to pass more wealth on to their heirs and dodge a tax increase."
Residents of High-Tax States: The state and local tax (SALT) deduction limit increases to $40,000 annually for five years,
Small Business Owners: The 2017 pass-through business deduction (up to 20% of qualified business income) is permanently extended.
Private Equity & Fossil Fuel Producers: the maintenance of the carried interest tax break for private equity and new requirements to open federal land for drilling
Domestic Car Dealers & Manufacturers: a tax deduction for loan interest on US-made cars,
Elderly and Tipped Workers: taxpayers 65 and older receive a larger standard deduction, and tips and overtime pay are exempted from income taxes. very few people will actually benefit
Telecommunications, Corporations, Defense Contractors, Space Industry: spectrum auctions, rejection of certain tax increases for big business, increased defense spending, and funding for space projects.
Loosers:
Low-Income Americans: Renewable Energy & EV: Elite Universities: Immigrants