president Donald TrumpThe overwhelming legislative package, as expected, is exciting to the dispute. Republicans present it as a “great, great bill.” Democrats are called “one beautiful, beautiful betrayal”. Here is a look at some bill The main elements.
Winners: The draft law seeks to extend the tax and job cuts law (TCJA) for 2017. This means that the provisions of the expiration of the authority that benefit from the high and wealthy income holders will be permanent.
It also seeks to cancel federal taxes on advice and pay additional work, which meets some of the Trump campaign promises.
Tax exemptions will reduce revenue by $ 4.9 trillion over the decade, but increase spending on military security, defense and borders.
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Therefore, if legislators fall on the bill in the law, the main American defense contractors love RTX Corp. (NYSE:RTX) And Lockheed Martin Company (NYSE:LMTIt can benefit from increased defense spending.
Other companies are exposed to the defense sector, including Palantir Technologies, Inc. (Nasdak:Fungi) And Bose Allen Hamilton Holding (NYSE:StrayIt can also benefit from increased military and defensive spending.
The losers: The cost of the tax bill will be partially balanced with new taxes on private university endowments and significant discounts in programs such as Medicaid.
The shares of the major managed care organizations in the Medicaid field can be vulnerable to the fluctuations of enrollment and the challenges of distinct pricing if the changes are approved. Investors will be wise to monitor UNITEDHEALTH GROUP, Inc. (NYSE:United Nations), Corp Corp. (NYSE:CNC) And Elevance Health, Inc. (NYSE:principleThe draft law also moves through Congress.
Low -income Americans who depend on nutritional assistance should take a flag. Republicans in the House of Representatives suggest major changes in the additional or sudden nutritional assistance program. The program helps more than 42 million Americans. The bill will transfer 5 % of the costs of benefits and 75 % of the administrative costs of the states, up from the current 50 % share of management only. It also seeks to expand work requirements for beneficiaries until the age of 64.
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Democrats criticized this step as harmful to families, while Republicans say it enhances work and reduces waste. The Agriculture Committee in the House of Representatives has already approved $ 300 million of Snap discounts to help finance tax exemptions.
If the legislative package is approved, it will also be the end of many clean energy and tax credit initiatives and will impose new fees on electric cars. These changes may slow the growth of the clean energy sector and make electric cars and renewable materials less competitive compared to traditional energy sources.
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