Hello,  After months of negotiations, a new tax and spending bill was approved by Congress and signed into law by President Trump on July 4th. While trade policy has been the focus for the past several months, tax and spending policy in Washington has been a growing source of uncertainty for many years. On an individual level, taxes directly affect many aspects of financial planning, and the specific provisions in this tax bill have immediate implications for household finances. From an economic perspective, many also worry about the level of government spending, the growing national debt, and other factors that have weighed on markets over the past two decades. So, how could it affect your financial plans, and what does it mean for markets in the years to come? A few things to consider:  The Tax Cuts and Jobs Act rates are now permanent Growing concerns over fiscal deficits The bill continues the higher estate tax exemption limit Click here for the full article to learn more about some of the major provisions of the new bill.   Overall, the new spending and tax bill extends and expands the current low-tax environment. A properly constructed financial plan is designed with these tax provisions in mind. When it comes to growing deficits and the national debt, it’s important to maintain a long-term perspective. If you have questions about how this affects your financial plans specifically, please reach out. We’re happy to talk through it. Sincerely, Your Eagle Wealth Team

What's New with Your Tax Return One key feature in what is commonly being called the One Big Beautiful Bill Act, is the extension and revision of some of the tax laws that were part of the 2017 Tax Cuts and Jobs Act (TCJA). Here’s a quick summary of the major changes: No Tax on Tips A new $25,000 deduction was created for tips starting in 2025 and ending in 2028. The deduction is reduced if your gross income exceeds $150,000 or $300,000 if married. Note: The tax on tips provision is allowed even if you take the standard deduction. No Tax on Overtime A new $12,500 deduction (single filers) and $25,000 (married filing jointly) was created for overtime starting in 2025 and ending in 2028. Note: Like no tax on tips, the deduction is reduced if your gross income exceeds $150,000 or $300,000 if married. Child Tax Credit Starting in 2025, the child tax credit is increasing to $2,200 from $2,000. The credit also has a COLA (cost-of-living adjustment) attached. 529 Expansion  The bill extends the 529 umbrella to cover non-tuition expenses related to elementary or secondary school attendance. In addition, starting in 2026, the cap for tuition-related expenses increases from $10,000 to $20,000. New Car Loans Between 2025 and 2028, a $10,000 deduction on new car loan interest will be available, but some limitations apply (such as the car needing to be brand-new). First, the deduction will be reduced by $200 if your gross income exceeds $100,000 or $200,000 if you are married. Plus, the car's final assembly must occur in the U.S. to qualify for the deduction. Termination of EV Subsidies EV credits for new and used cars will end after September 30, 2025. Note: Some EV home improvements (such as windows) and residential energy credits (adding solar) end after December 31, 2025.   Updated Rules for Business Owners* Small Business Deduction The new law permanently establishes the deduction of up to 20% of qualified business income for sole proprietorships, partnerships, and S-Corps. 100% Expensing of Capital and Factory Investments The bill restores the provision that allows businesses to expense 100% of capital investments made on or after January 19, 2025. However, some limits may apply. 1099-K The new law sets the reporting limits at $20,000 and 200 transactions for transactions on cash apps. Note: The rule starts in 2025. It rolls back the $600 threshold set under the American Rescue Plan. *This is a high-level overview since the new rules for business owners only apply to a select number of people.   The new bill has added complexity to the tax code, so we anticipate the IRS will issue guidelines on how to interpret the updated rules later this year.

The Week on Wall Street

Stocks were slightly lower last week, while looking past news of fresh U.S. tariffs on nearly two dozen countries.

The Standard & Poor’s 500 Index fell 0.31 percent, while the Nasdaq Composite Index edged lower by 0.08 percent. The Dow Jones Industrial Average lost 1.02 percent. The MSCI EAFE Index, which tracks developed overseas stock markets, slipped 0.43 percent.^1,2

The Return of the Tariffs

Stocks started the week lower after the White House posted letters to 14 countries announcing new tariffs, set to take effect August 1. They included 25 percent tariffs on South Korea and Japan.^3,4
 
Stocks dropped briefly midweek after the White House announced tariffs on seven additional countries. But as investors digested the news, markets gradually recovered, hoping the administration would dial back its steepest tariff rates again.

Markets also rallied on fresh AI trade enthusiasm and the latest Fed meeting minutes, which showed a majority of Committee members were open to adjusting interest rates later this year.^5,6
 
Markets opened higher on Thursday as investors shrugged off news of the 50 percent tariff on Brazil imports, announced shortly after Wednesday’s close. Momentum continued, and the S&P 500 and Nasdaq rose to fresh records.⁷
 
Then, after Thursday’s close, the White House announced the U.S. was raising tariffs on Canadian imports to 35 percent and was preparing some other tariffs. Markets opened lower on Friday and trended sideways during the trading session.⁸

The T Word

While tariffs drove market headlines last week, another “t word” made news: trillion.

More specifically, $4 trillion in market capitalization. The nation’s largest AI chip maker was the first company to breach that market cap level. It crossed the $4 trillion mark intraday on Wednesday, then closed above it for the first time on Thursday’s close.^9,10

So why does it matter when one stock hits such a milestone? For a market-cap weighted index like the S&P 500, a company valued at $4 trillion has an outsized effect on the overall index’s performance. The largest five companies in the S&P 500 comprise about one-third of the benchmark index.^9,10

<sup>CNBC.com, July 3, 2025. “Tax changes under Trump’s ‘big beautiful bill’ — in one chart.” 
FoxBusiness.com, July 4, 2025. “Five major policies to know from the One Big Beautiful Bill Act.”
TaxFoundation.org, July 2, 2025. “The Good, the Bad, and the Ugly in the One Big Beautiful Bill Act.”
1. WSJ.com, July 11, 2025
2. Investing.com, July 11, 2025
3. CNBC.com, July 7, 2025
4. CNBC.com, July 8, 2025</sup>

<sup>5. WSJ.com, July 9, 2025
6. MarketWatch.com, July 9, 2025
7. CNBC.com, July 10, 2025
8. CNBC.com, July 11, 2025
9. WSJ.com, July 9, 2025
10. MarketWatch.com, July 10, 2025</sup>

^{Investing involves risks, and investment decisions should be based on your own goals, time horizon, and tolerance for risk. The return and principal value of investments will fluctuate as market conditions change. When sold, investments may be worth more or less than their original cost.}

^{The forecasts or forward-looking statements are based on assumptions, may not materialize, and are subject to revision without notice.}

^{The market indexes discussed are unmanaged, and generally, considered representative of their respective markets. Index performance is not indicative of the past performance of a particular investment. Indexes do not incur management fees, costs, and expenses. Individuals cannot directly invest in unmanaged indexes. Past performance does not guarantee future results.}

^{The Dow Jones Industrial Average is an unmanaged index that is generally considered representative of large-capitalization companies on the U.S. stock market. Nasdaq Composite is an index of the common stocks and similar securities listed on the NASDAQ stock market and is considered a broad indicator of the performance of technology and growth companies. The MSCI EAFE Index was created by Morgan Stanley Capital International (MSCI) and serves as a benchmark of the performance of major international equity markets, as represented by 21 major MSCI indexes from Europe, Australia, and Southeast Asia. The S&P 500 Composite Index is an unmanaged group of securities that are considered to be representative of the stock market in general.}

^{U.S. Treasury Notes are guaranteed by the federal government as to the timely payment of principal and interest. However, if you sell a Treasury Note prior to maturity, it may be worth more or less than the original price paid. Fixed income investments are subject to various risks including changes in interest rates, credit quality, inflation risk, market valuations, prepayments, corporate events, tax ramifications and other factors.}

^{International investments carry additional risks, which include differences in financial reporting standards, currency exchange rates, political risks unique to a specific country, foreign taxes and regulations, and the potential for illiquid markets. These factors may result in greater share price volatility.}

^{Please consult your financial professional for additional information.}

^{This content is developed from sources believed to be providing accurate information. The information in this material is not intended as tax or legal advice. Please consult legal or tax professionals for specific information regarding your individual situation. This material was developed and produced by FMG Suite to provide information on a topic that may be of interest. FMG is not affiliated with the named representative, financial professional, Registered Investment Advisor, Broker-Dealer, nor state- or SEC-registered investment advisory firm. The opinions expressed and material provided are for general information, and they should not be considered a solicitation for the purchase or sale of any security.  Copyright 2025 FMG Suite.}

^{Copyright (c) 2025 Clearnomics, Inc. All rights reserved. The information contained herein has been obtained from sources believed to be reliable, but is not necessarily complete and its accuracy cannot be guaranteed. No representation or warranty, express or implied, is made as to the fairness, accuracy, completeness, or correctness of the information and opinions contained herein. The views and the other information provided are subject to change without notice. All reports posted on or via www.clearnomics.com or any affiliated websites, applications, or services are issued without regard to the specific investment objectives, financial situation, or particular needs of any specific recipient and are not to be construed as a solicitation or an offer to buy or sell any securities or related financial instruments. Past performance is not necessarily a guide to future results. Company fundamentals and earnings may be mentioned occasionally, but should not be construed as a recommendation to buy, sell, or hold the company's stock. Predictions, forecasts, and estimates for any and all markets should not be construed as recommendations to buy, sell, or hold any security--including mutual funds, futures contracts, and exchange traded funds, or any similar instruments. The text, images, and other materials contained or displayed in this report are proprietary to Clearnomics, Inc. and constitute valuable intellectual property. All unauthorized reproduction or other use of material from Clearnomics, Inc. shall be deemed willful infringement(s) of this copyright and other proprietary and intellectual property rights, including but not limited to, rights of privacy. Clearnomics, Inc. expressly reserves all rights in connection with its intellectual property, including without limitation the right to block the transfer of its products and services and/or to track usage thereof, through electronic tracking technology, and all other lawful means, now known or hereafter devised. Clearnomics, Inc. reserves the right, without further notice, to pursue to the fullest extent allowed by the law any and all criminal and civil remedies for the violation of its rights. Clearnomics is a separate and unrelated entity.}