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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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Entertainment

The 1975 star Matty Healy warns of musical ‘silence’ without small stages as he backs new UK-wide festival

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The 1975 star Matty Healy warns of musical 'silence' without small stages as he backs new UK-wide festival

The 1975 frontman Matty Healy has warned of a musical “silence” that would come without the pubs and bars that give UK artists their first chance to perform.

Fresh from headlining Glastonbury in June, Healy is backing a new UK-wide festival which will see more than 2,000 gigs taking place across more than 1,000 “seed” venues in September.

The Seed Sounds Weekender aims to celebrate the hospitality sector hosting bands and singers just as they are starting out – and for some, before they go on to become global superstars.

Healy, who is an ambassador for the event, said in a statement to Sky News: “Local venues aren’t just where bands cut their teeth, they’re the foundation of any real culture.

“Without them, you don’t get The Smiths, Amy Winehouse, or The 1975. You get silence.”

Oasis, currently making headlines thanks to their sold-out reunion tour, first played at Manchester’s Boardwalk club, which closed in 1999, and famously went on to play stadiums and their huge Knebworth gigs within the space of a few years.

Liam and Noel Gallagher on stage for the first Wembley night of the Oasis reunion tour. Pic: Lewis Evans
Image:
Oasis stars Liam and Noel Gallagher, pictured on stage at Wembley for their reunion tour, started out playing Manchester’s Boardwalk club. Pic: Lewis Evans

GigPig, the live music marketplace behind Seed Sounds, says the seed sector collectively hosts more than three million gigs annually, supports more than 43,000 active musicians, and contributes an estimated £2.4bn to the UK economy.

“The erosion of funding for seed and grassroots spaces is part of a wider liberal tendency to strip away the socially democratic infrastructure that actually makes art possible,” said Healy.

“What’s left is a cultural economy where only the privileged can afford to create, and where only immediately profitable art survives.”

He described the Seed Sounds Weekender as “a vital reminder that music doesn’t start in boardrooms or big arenas – it starts in back rooms, pubs, basements, and independent spaces run on love, grit, and belief in something bigger.”

Read more from Sky News:
Oasis photographers recall the early days
Heavy metal to reality TV: The wild life of Ozzy Osbourne

The importance of funding for grassroots venues has been highlighted in the past few years, with more than 200 closing or stopping live music in 2023 and 2024, according to the Music Venue Trust. Sheffield’s well-known Leadmill venue saw its last gig in its current form in June, after losing a long-running eviction battle.

In May, Culture Secretary Lisa Nandy announced the £85m Creative Foundations Fund to support arts venues across England.

And last year, the Culture, Media and Sport Committee called for a levy on tickets to large concerts at stadiums and arenas to help fund grassroots venues, which artists including Coldplay and Katy Perry, and venues including the Royal Albert Hall, have backed.

But most seed venues – the smaller spaces in the hospitality sector that provide a platform before artists get to ticketed grassroots gigs or bigger stages – won’t qualify for the levy. GigPig is working to change this by formalising the seed music venue space as a recognised category.

“The UK’s seed venues are where music careers are born,” said GigPig co-founder Kit Muir-Rogers. “Collectively, this space promotes more music than any other in the live music business, yet it has gone overlooked and under-appreciated.”

The Seed Sounds Weekender takes place from 26-28 September and will partner with Uber to give attendees discounted rides to and from venues.

Tickets for most of the gigs will be free, with events taking place across 20 UK towns and cities including London, Liverpool, Birmingham, Manchester, Glasgow, Leicester, Newcastle and Southampton

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Technology

Samsung backs South Korean AI chip startup Rebellions ahead of IPO

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Samsung backs South Korean AI chip startup Rebellions ahead of IPO

The Rebel-Quad is the second-generation product from Rebellions and is made up of four Rebel AI chips. Rebellions, a South Korean firm, is looking to rival companies like Nvidia in AI chips.

Rebellions

South Korean artificial intelligence chip startup Rebellions has raised money from tech giant Samsung and is targeting a funding round of up to $200 million ahead of a public listing, the company’s management told CNBC on Tuesday.

Last year, Rebellions merged with another startup in South Korea called Sapeon, creating a firm that is being positioned as one of the country’s promising rivals to Nvidia.

Rebellions is currently raising money and is targeting funding of between $150 million and $200 million, Sungkyue Shin, chief financial officer of the startup, told CNBC on Tuesday.

Samsung’s investment in Rebellions last week was part of that, Shin said, though he declined to say how much the tech giant poured in.

Since its founding in 2020, Rebellions has raised $220 million, Shin added.

The current funding round is ongoing and Shin said Rebellions is talking to its current investors as well as investors in Korea and globally to participate in the capital raise. Rebellions has some big investors, including South Korean chip giant SK Hynix, telecommunication firms SK Telecom and Korea Telecom, and Saudi Arabian oil giant Aramco.

AI chip startup Rebellions looks to raise up to $200 million ahead of IPO

Rebellions was last valued at $1 billion. Shin said the current round of funding would push the valuation over $1 billion but declined to give specific figure.

Rebellions is aiming for an initial public offering once this funding round has closed.

“Our master plan is going public,” Shin said.

Rebellions designs chips that are focused on AI inferencing rather than training. Inferencing is when a pre-trained AI model interprets live data to come up with a result, much like the answers that are produced by popular chatbots.

With the backing of major South Korean firms and investors, Rebellions is hoping to make a global play where it will look to challenge Nvidia and AMD as well as a slew of other startups in the inferencing space.

Samsung collaboration

Rebellions has been working with Samsung to bring its second-generation chip, Rebel, to market. Samsung owns a chip manufacturing business, also known as foundry. Four Rebel chips are put together to make the Rebel-Quad, the product that Rebellions will eventually sell. A Rebellions spokesperson said the chip will be launched later this year.

The funding will partly go toward Rebellions’ product development. Rebellions is currently testing its chip which will eventually be produced on a larger scale by Samsung.

“Initial results have been very promising,” Sunghyun Park, CEO of Rebellions, told CNBC on Tuesday.

South Korean AI startup Rebellions says tariffs could delay IPO by 'a little bit'

Park said Samsung invested in Rebellions partly because of the the good results that the chip has so far produced.

Samsung is manufacturing Rebellions’ semiconductor using its 4 nanometer process, which is among the leading-edge chipmaking nodes. For comparison, Nvidia’s current Blackwell chips use the 4 nanometer process from Taiwan Semiconductor Manufacturing Co. Rebellions will also use Samsung’s high bandwidth memory, known as HBM3e. This type of memory is stacked and is required to handle large data processing loads.

That could turn out to be a strategic win for Samsung, which is a very distant second to TSMC in terms of market share in the foundry business. Samsung has been looking to boost its chipmaking division. Samsung Electronics recently entered into a $16.5 billion contract for supplying semiconductors to Tesla.

If Rebellions manages to find a large customer base, this could give Samsung a major customer for its foundry business.

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Science

NISAR Launches July 30: A NASA-ISRO Satellite to Track Earth’s Changes

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NISAR Launches July 30: A NASA-ISRO Satellite to Track Earth’s Changes

The NASA-ISRO Synthetic Aperture Radar (NISAR) satellite, a joint Earth science mission, is now set for launch from India’s Satish Dhawan Space Centre. The pickup-truck-sized spacecraft was encapsulated in the nose cone of an Indian Geosynchronous Satellite Launch Vehicle and is scheduled to lift off on Wednesday, July 30 at 8:10 a.m. EDT (5:40 p.m. IST). Once in orbit, its dual-frequency radars will circle Earth 14 times a day, scanning nearly all of the planet’s land and ice surfaces every 12 days. It will provide data to help scientists monitor soil moisture and vegetation, and better assess hazards like landslides and floods.

International Collaboration and Launch Readiness

According to the official website, NISAR reflects a significant NASA–ISRO partnership. NASA’s Jet Propulsion Laboratory (JPL) built the long-wavelength L-band radar, and India’s Space Applications Centre built the shorter-wavelength S-band radar. This dual-frequency design makes NISAR the first Earth satellite to carry two radar systems, underscoring the mission’s unique collaboration.

The spacecraft is now integrated into its launch vehicle at India’s Satish Dhawan Space Centre. On July 28 NASA announced NISAR had been encapsulated in the payload fairing of an ISRO Geosynchronous Satellite Launch Vehicle on the pad. The GSLV is scheduled to lift off at 8:10 a.m. EDT (5:40 p.m. IST) on Wednesday, July 30.

Advanced Dual-Frequency Radar

NISAR carries a novel dual-frequency radar system. The satellite’s instruments operate at L-band (25 cm) and S-band (10 cm) wavelengths. The longer L-band waves can penetrate forests and soil to sense moisture and land motion, while the shorter S-band waves pick up fine surface details like vegetation moisture and roughness. This combination lets NISAR detect both large-scale and fine-scale changes.

From orbit, NISAR will circle Earth 14 times per day, scanning nearly all land and ice surfaces twice every 12 days. Its data will track changes like the advance or retreat of polar ice sheets and slow ground shifts from earthquakes, and will also aid agriculture and disaster planning by helping monitor crops and prepare for floods and hurricanes.

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