Big Changes in U.S. Taxes: What You Need to Know Today
Big News: The "Revenge Tax" Is Gone
The U.S. government has decided to remove a part of a proposed law called the "revenge tax." This tax would have charged extra money to companies from other countries that tax American businesses unfairly. Treasury Secretary Scott Bessent said this tax is no longer needed because of a new agreement with other major countries. This deal helps protect American businesses and encourages investment in the U.S.
New Tax Laws Starting Today
Several states have new tax laws that begin on July 1, 2025. Here's a simple breakdown:
Illinois
- Gas Tax Increase: The tax on gasoline has gone up, making it the second-highest in the country.
- Tobacco and Vape Taxes: Taxes on vapes, nicotine pouches, and other tobacco products have increased from 15% to 45%.
Maryland
- Tech Services Tax: A new 3% tax is now applied to many digital and IT services.
- Income Tax Changes: There are new income tax brackets and a 2% surcharge on capital gains for high earners.
Mississippi
- Grocery Tax Reduction: The sales tax on groceries has been lowered from 7% to 5%.
Utah
- Online Sales Tax Rule Change: Utah has removed its 200-transaction threshold for online sellers, simplifying tax rules for businesses.
What This Means for You
- Lower Grocery Bills: If you live in Mississippi, your grocery shopping might be a bit cheaper now.
- Higher Gas Prices: Drivers in Illinois may notice higher prices at the pump due to the increased gas tax.
- Digital Services Cost More: In Maryland, services like cloud storage and software subscriptions might cost more because of the new tech tax.
Stay Informed
Tax laws can change often, and they can affect your daily life in many ways. It's important to stay updated so you can plan your finances accordingly.