#obbba

#obbba

What's becoming clear is that this divide is no longer confined to the labor market. It's now embedded in its foundation: education. When access to advanced degrees depends not on ability or workforce demand, but on whether a household can absorb six figures of upfront cost, stratification accelerates. The upper branch compounds advantage through credentialed mobility. The lower branch absorbs risk, debt, and stalled progression.

The OBBBA's new deduction is worth $6,000 annually, and it is on top of other deductions retirees can claim, like the standard deduction available to all taxpayers. The new $6,000 deduction is available beginning in 2025 for taxpayers 65 and over, and married taxpayers who meet the age requirements can each claim the deduction, allowing them to save a total of $12,000 on their income taxes.

According to the detailed assessment from the nonpartisan budget watchdog, OBBBA will deliver a significant boost to economic output in the near term, with estimates showing growth rates could climb by nearly 1% in 2026, driven by increased demand and one-time incentives for labor and investment. However, the organization stresses this burst of activity is fleeting and warns projected long-term growth will stagnate as additional borrowing burdens the economy.

The TCJA capped the SALT deduction at $10,000 for married couples and $5,000 for individuals, while the OBBBA raised the cap to $40,000 and $20,000 respectively.