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Most Americans face tax hikes starting in 2026, and the increased federal tax bite will come about without Congress lifting a finger. That’s because 2017’s Tax Cuts and Jobs Act (TCJA) expires at the end of 2025, and despite some politicians’ contrary claims, a majority of Americans benefited from that law. The end of tax cuts for so many people necessarily results in corresponding increases to come.

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Δ Tax Cuts for Most, but With a Time Limit

“Unless Congress acts, the vast majority of Americans will see higher, more complicated taxes beginning in 2026 as major provisions from the Tax Cuts and Jobs Act of 2017 expire,” warns the Tax Foundation. “The TCJA reduced average tax burdens for taxpayers across the income spectrum and temporarily simplified the tax filing process through structural reforms. It also boosted capital investment by reforming the corporate tax system and significantly improved the international tax system.”

The widespread benefits of the TCJA shouldn’t be a matter for debate. But there’s confusion because Team Biden and fans of high taxes fibbed about the law leading up to the 2020 presidential election.

“Biden’s false claim that no one but the rich got Trump’s tax cuts,” headlined a 2019 Washington Post Glenn Kessler piece about the debate over the law. “Most Americans received a tax cut,” he added.

“About 65 percent of households paid less in individual income taxes in 2018 as a result of the TCJA,” wrote the Tax Policy Center’s Howard Gleckman. “About 6 percent paid more. The rest paid about the same.”

Adjusting for all federal taxes under pre-TCJA law, the Cato Institute’s Chris Edwards commented, “lower? and middle??income groups received the largest relative individual income tax cuts.”

So, there’s widespread agreement that a law which cut taxes for most Americans is poised to expire, resulting in higher taxes. But, just as the benefits of the tax cuts varied across the population, so will the size of the bite taken by tax increases starting in 2026. Tax Hikes for All

“The largest average tax hikes would be experienced by taxpayers who reside in California’s congressional districts,” note the Tax Foundation’s Garrett Watson and Erica York. “For example, the congressional district covering the San Francisco area would see an average tax hike of $16,127 per taxpayer, the highest in the U.S. By contrast, northern New York City would see an average tax increase of $807 per taxpayer under TCJA expiration.”

That link takes you to a tool that lets you look up the estimated impact of TCJA expiration on taxpayers in states and congressional districts across the country.

Separately, the Tax Foundation published a tax calculator that lets you estimate the impact of TCJA expiration on you and your family, given specifics such as marital status, income, number of children, and choice of standard or itemized deductions. The calculator accounts for “most aspects of the federal individual income tax code except provisions related to business and self-employed income.”

That said, extending the TCJA’s tax cuts has high costs of its own since that would reduce the amount of money collected by the federal government to spend on its projects. Tax Cuts and Tradeoffs

“Federal tax revenues would fall by more than $4 trillion on a conventional basis and by nearly $3.5 trillion on a dynamic basis over the coming decade; and without spending cuts, debt and deficits would increase,” concedes a May Tax Foundation report on options regarding the law.

“By the year 2050, permanent extension of TCJA laws would reduce federal revenues from 18.4 percent to 17.1 percent of annual Gross Domestic Product (GDP),” Jagadeesh Gokhale and Mariko Paulson of the University of Pennsylvania’s Penn Wharton Budget Model specify. “Federal debt held by the public would rise from 226.0 percent of GDP to 261.1 percent by 2050.”

But that decrease in revenue and corresponding rise in debt and deficits may matter only if it hampers a serious plan to control the federal government’s ongoing spending spree. Separately, the Penn Wharton Budget Model predicts that “a maximum debt-GDP ratio of 200 percent can be sustained even if investors believe (maybe myopically) that a closure rule will then prevent that ratio from increasing into the future.” They say the real ceiling on federal debt is more like 175 percent of GDP before the financial markets entirely lose faith in the U.S. economy. Debt as a percentage of GDP above that point is disastrous, whether at 226 percent or 261 percent.

It makes sense, then, for Americans to submit to significant tax hikes only if those increases go to balancing the federal budget, eliminating deficits, and controlling debt. Otherwise, we’re going to pay more for what is essentially the same very bad outcome. A Need for Serious Reform

Benefits of extending the TCJA, on the other hand, operate independent of faith in a sudden surge in responsibility among the political class. Extending the law’s provisions “would boost long-run GDP by 1.1 percent and employment by 913,000 full-time equivalent jobs,” according to the Tax Foundation.

For extending the TCJA, the Tax Foundation considers two options, both including modifications that seek to reduce the hit to federal revenues while maximizing gains for individuals. Option 2, for example, “broadens the individual income tax base by ending the income tax exclusion for employer-provided fringe benefits, most notably health insurance.”

That’s a matter of tweaking the current system around the edges to maintain relief for individuals and a faster-growing economy. Tax Foundation experts also propose possible fundamental changes, including entirely dumping the income tax system in favor of a consumption tax. That has the potential to significantly boost personal income as well as GDP and reduce the national debt. Of course, the gains really apply only if the government also reduces spending.

But such fundamental reform is a lot to ask of a political class that spent us into a corner and now wants tax hikes so there’s even more of our money to spend. Letting the TCJA expire requires placing enormous faith in people who got us into a fiscal mess to begin with.

Fundamental reforms to the federal government’s finances are absolutely necessary. Until that happens, we should resist stealth tax hikes so we can keep our hard-earned money for ourselves.

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Business

Microsoft is now worth over $4 trn, becoming only second firm ever to pass milestone

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July 31, 2025

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Microsoft is now worth over trn, becoming only second firm ever to pass milestone

Microsoft has become only the second publicly traded company after Nvidia to surpass $4 trn (£3.03trn) in market valuation, after registering huge earnings.

On Thursday, shares rose on Wall Street with the S&P 500 and Nasdaq climbing to new record highs.

Stocks in Microsoft jumped after posting better-than-expected results, helped by its Azure cloud computing platform, which is a centrepiece of the company’s artificial intelligence (AI) efforts.

Shares in Facebook and Instagram’s parent company, Meta, also surged after beating sales and profit targets.

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Technology giants Apple and Amazon will report their results after Wall Street’s close.

Microsoft first cracked the $1trn (£760bn) mark in April 2019, but its move to $3trn (£2.27trn) took longer than technology giants Nvidia and Apple.

Nvidia tripled its value in just about a year and clinched the $4trn milestone before any other company on 9 July. Apple was last valued at $3.12trn.

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In comparison, the biggest UK company by market value is drug manufacturer AstraZeneca, worth $235.97bn (£178.55bn).

Companies ranked by market value (USD), according to tradingview.com

1. Nvidia (US) $4.43trn
2. Microsoft (US) $4trn
3. Apple (US) $3.12trn
4. Amazon (US) $2.47trn
5. Alphabet (US) $2.35trn
6. Meta (US) $1.95trn
7. Saudi Arabian Oil (Saudi Arabia) $1.56trn
8. Broadcom (US) $1.42trn
9. Berkshire Hathaway (US) $1.03trn
10. Tesla (US) $1.02trn
11. Taiwan Semiconductor Manufacturing (Taiwan) $1trn
29. Samsung Electronics (South Korea) $338.06bn
36. Alibaba (China) $284.62bn
52. AstraZeneca (UK) $235.97bn

While sweeping US tariffs had investors worried about tighter business spending, Microsoft’s strong earnings have shown that the company’s books are yet to take a hit.

Microsoft’s multibillion-dollar bet on OpenAI is proving to be a game changer, powering its Office Suite and Azure offerings with cutting-edge AI and fueling the stock to more than double its value since ChatGPT’s late-2022 debut.

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Read more from Sky News:
Microsoft beats Nvidia by market value
Trump unveils AI action plan
UK ramps up AI adoption with Meta

On Wednesday, the firm announced Azure sales surpassed $75bn (£56bn) on an annual basis, while Azure revenue jumped 39% in the April-June quarter.

Overall revenue rose 18% to $76.4bn (£57.81bn) over the same period.

It is also forecasting a record $30bn (£22.7bn) in capital spending over the first quarter to meet soaring AI demand..

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Environment

ENGWE Engine Pro 2.0 e-bike at exclusive new $750 low, Anker eufy S220 solar cam $65, Linkind smart solar spotlights from $23, more

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July 31, 2025

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ENGWE Engine Pro 2.0 e-bike at exclusive new 0 low, Anker eufy S220 solar cam , Linkind smart solar spotlights from , more

Leading today’s pack of Green Deals is an exclusive 50% discount for our readers on the ENGWE Engine Pro 2.0 Folding e-bike at a new $749.50 low. Right behind it we have Anker’s eufy SoloCam S220 Solar Security Camera starting at $65, with some multi-pack discounts also available, as well as multi-packs of Linkind’s Smart Solar Spotlights starting from $23. From there we have a 3-in-1 tool bundle with replacement parts from Worx, a 60V 610 CFM cordless leaf blower from Greenworks, and more waiting for you below. Plus, all the hangover savings at the bottom of the page, like yesterday’s ECOVACS Goat RTK robot lawn mower low price, Rad Power’s RadWagon 4 cargo e-bike discount, and more.

Head below for other New Green Deals we’ve found today and, of course, Electrek’s best EV buying and leasing deals. Also, check out the new Electrek Tesla Shop for the best deals on Tesla accessories.

Commute up to 68 miles with exclusive 50% savings on ENGWE’s Engine Pro 2.0 folding e-bike at a new $749.50 low

We’ve secured an exclusive and budget-friendly deal from Wellbots for our readers on the ENGWE Engine PRO 2.0 Folding e-bike at $749.50 shipped, after using the exclusive promo code 9TO5ENGWE50 at checkout for 50% off. This model would normally run you $1,499 here, which we’ve seen discounted as low as $1,149 from the brand over the last year. That price is getting strong-armed out of the way with this exclusive deal that gives you a 50% markdown, putting nearly $750 back into your pocket at the best new price we have tracked.

A great alternative option for riders who want a reliable means to get through their commutes without shelling out $1,000 or more on other brands, the ENGWE Engine Pro 2.0 e-bike is a folding model that saves on space while also providing some significant travel support. The 750W rear hub motor peaks at 1,200W and comes paired with a removable 16Ah battery for up to 68 miles of pedal-assisted travel (five levels supported by a torque sensor) at up to 20 to 28 MPH top speeds, depending on what your local laws allow. Of course, you’ll have the option for pure electric travel via the throttle, though keep in mind this reduces the mileage to around 30 miles on one full charge.

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For the low price you’re getting on ENGWE’s Engine Pro 2.0, you’ll be scoring some solid features, including hydraulic disc brakes for greater stopping power, puncture-resistant all-terrain fat tires so you don’t have to fear what you may ride over, and an 8-speed Shimano derailleur for versatile pedaling options. That’s not all, as you’ll also be getting a rear cargo rack, a full suspension system, and a smart LCD screen for performance data and setting adjustments – plus, the whole thing weighs in at 70 pounds, so it’s manageable regardless of your rural/suburban/urban environment.

rain falling onto Anker eufy SoloCam S220 solar security camera

Upgrade your home security with Anker’s solar-powered eufy SoloCam S220 camera at $65

Anker is offering its eufy SoloCam S220 Solar Security Camera at $64.99 shipped, after using the on-page promo code at checkout for $35 off the price, which is beating out Amazon’s pricing by $5. Coming down off its $100 full price tag while the savings last, this model has been regularly seen dropping to $70 and more recently going lower to $65 over the last handful of months, only beaten out by the $62 low we first saw appearing during Prime Day at the top of the month. You’re looking at 35% markdown while the savings last, giving you the second-best price we have tracked if you missed out on the one-time Prime Day low. You’ll also find the camera’s multi-pack options starting from $129.99 shipped here.

If you want to learn more about this solar-powered security device, be sure to check out our original coverage of this deal here.

Daytime and Nighttime differences with Linkind's smart solar spotlights lining walkway

Save up to 34% on multi-packs of Linkind’s Smart Solar Spotlights starting from $23

By way of its official Amazon storefront, Linkind is offering its Smart Solar Spotlights starting at $22.99 shipped for a 2-pack. The price is coming down from its $35 tag, with them having spent a significant portion of recent months at $24, with some falls to $23 (including during Prime Day) and one earlier drop to the $21 low back in April. You’re looking at a 34% markdown here that cuts $12 off the tag for the second-best price we have tracked, landing just $2 above the all-time low. You’ll also find its larger bundles benefitting from discounts, with the 4-pack down at its second-best price of $48.99 shipped, after clipping the on-page 30% off coupon, while its 8-pack is down at a $90.98 low.

If you want to learn more about this outdoor lighting device, be sure to check out our original coverage of this deal here.

man trimming around tree trunk with Worx GT revolution 3-in-1 string trimmer/edger/mini-mower

Pick up the Worx GT Revolution 20V 12-inch string trimmer/edger/mini-mower with spare parts at $83 (2025 low)

Amazon is offering the Worx GT Revolution 20V 12-inch String Trimmer/Edger/Mini-Mower kit that comes with a 2.0Ah battery, 2A charger, three replacement spools, a spool holder, and replacement edger wheels for $82.99 shipped. The combination of the tool and battery alone goes for $130 at full price directly from the brand’s website, where it’s currently priced, but we’ve been seeing this larger bundle package keep down to $100 for much of the time since late March. While we have seen it drop lower in the past, the additional $17 savings from its recent going rate is the best price we have tracked over the last 12 months, even beating out its Prime Day pricing by $2.

If you want to learn more about this 3-in-1 tool, be sure to check out our original coverage of the deal here.

man clearing large pile of leaves in yard with greenworks 60V 610 CFM cordless leaf blower

Clear out your yard with up to 610 CFM air flow through this 60V Greenworks cordless leaf blower at $142

Amazon is offering the Greenworks 60V 610 CFM Cordless Leaf Blower at $142.49 shipped. Normally fetching $200 directly from the brand’s website, where this model is priced $8 higher, we’ve been seeing it keep to $180 in full at Amazon since March, with discounts dropping costs lower between $160 and $140 on average. The lowest we’ve seen this model fall was to a $135 rate on the last of Prime Day’s 4-day event, with the deal today matching the event’s first three days of pricing. You’re looking at the third-lowest price we have tracked, saving you $58 off the MSRP and landing just $7 above the all-time low.

If you want to learn more about this 60V blower, be sure to check out our original coverage of this deal here.

Best Summer EV deals!

Best new Green Deals landing this week

The savings this week are also continuing to a collection of other markdowns. To the same tune as the offers above, these all help you take a more energy-conscious approach to your routine. Winter means you can lock in even better off-season price cuts on electric tools for the lawn while saving on EVs and tons of other gear.

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Technology

Apple reports third-quarter earnings after the bell

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21 mins ago

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July 31, 2025

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Apple reports third-quarter earnings after the bell

Apple CEO Tim Cook attends the world premiere of “F1” at Times Square in New York on June 16, 2025.

Angela Weiss | AFP | Getty Images

Apple reports fiscal third-quarter earnings on Thursday after the bell.

The June quarter is typically Apple’s slowest of the year by sales, ahead of new device launches in September that typically spur the company’s biggest sales surge of the year driven in the December quarter.

Still, Apple is expected to report nearly $90 billion in overall sales during the period, which would be a 4% increase from last year. Analysts expect it to guide for 3% growth in the September quarter.

But there are lots of questions swirling around Apple, whose stock is down 16% so far in 2025.

The biggest question facing Apple is what it will say about tariffs. In May, Apple said it would have about $900 million in additional tariff costs in the June quarter, but that it couldn’t predict beyond that. Apple will likely update investors on how it sees tariffs affecting the September quarter, a key indicator for how President Donald Trump’s trade war is affecting American technology companies.

Apple also said in May that it would manufacture U.S.-bound iPhones in India to avoid tariffs on Chinese imports. But the company’s move upset Trump, who said after Apple’s last earnings call that he didn’t want the iPhone maker building in India. India is in line to receive a 25% tariff as soon as Friday. Apple CEO Tim Cook may update investors on its India pivot on Thursday.

The company held its annual Worldwide Developers Conference in June, in which it announced major updates to its software for iPhones and other devices. Apple did not, however, announce major new artificial intelligence products or initiatives, disappointing some analysts. However, some investors believe Apple’s AI stumbles aren’t expected to show up in its results for years.

On the brighter side, Cook will likely shout out the movie “F1,” which is Apple Original Films’ first summer blockbuster and passed $500 million at the global box office last weekend.

Here’s how Apple is expected to do in the June quarter, per LSEG consensus estimates:

  • Earnings per share: $1.43
  • Revenue: $89.54 billion

Don’t miss these insights from CNBC PRO

Apple returns to growth in China

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