Americans Are Already Paying Dearly for the National Debt The U.S. government’s massive national debt has already begun to exact a steep toll on American households, with rising interest rates driving up costs for mortgages, auto loans, small-business financing, and credit cards. The federal deficit, which has ballooned over the past decade, has pushed Treasury yields higher, squeezing families and businesses that rely on borrowing. According to the Budget Lab, a policy research center at Yale, congressional spending decisions since 2015 have raised long-term interest rates by nearly a full percentage point. This increase has translated into significant financial burdens for average Americans, with a 30-year mortgage at the median home price in 2024 now costing an additional $2,500 annually—over $76,000 over the loan’s lifetime. The impact extends beyond homeowners. The Budget Lab estimates that the fiscal policies of the past decade have raised borrowing costs for auto loans by about $120 per year and for small-business loans by roughly $770 annually. Credit-card rates, already near record highs, have also been exacerbated by the government’s reliance on deficit spending. These trends reflect a broader shift in how federal borrowing affects the private sector, as the demand for funds from the U.S. government drives up interest rates for all borrowers. The consequences of this debt-driven inflation are not hypothetical—they are already reshaping everyday life. For example, the war in Iran, which the Pentagon estimates cost $29 billion last month, is projected to push interest rates up by 0.002 percentage points. Meanwhile, the One Big Beautiful Bill Act, a major piece of legislation passed in recent years, is expected to raise the federal deficit by $2.#pentagon #one_big_beautiful_bill_act #budget_lab #tax_cuts_and_jobs_act #pandemic_stimulus_measures
Solar Energy Surpasses Coal for First Time in U.S. Electricity Generation For the first time in recorded history, solar energy provided more electricity in the United States than coal, marking a significant milestone in the nation’s transition toward renewable energy. According to an analysis by Ember, an energy think tank, solar contributed 12.8 percent of the country’s electricity in May, while coal accounted for just 12.2 percent. This shift reflects a dramatic transformation from five years ago, when solar generated less than half of its current output and coal dominated at 20 percent. Nicolas Fulghum, senior data analyst at Ember, highlighted the rapid growth of solar energy, noting that it has evolved from a niche contributor to the third-largest and fastest-growing power source in the U.S. electricity system. “Overtaking coal for the first month on record shows just how far solar has come,” Fulghum said in a press release. The expansion of solar capacity has been driven by widespread adoption across states like Texas and California, where markets are increasingly relying on solar to meet rising energy demands. Despite this progress, political challenges persist for renewable energy. Last summer, Congress passed the “One Big Beautiful Bill Act,” which rolled back key provisions of President Joe Biden’s 2022 Inflation Reduction Act, a major climate policy initiative. Meanwhile, President Donald Trump has actively opposed renewable energy development, including offering financial incentives to oil companies to halt offshore wind projects. These actions have created a contentious environment for the clean energy sector. The Trump administration’s recent announcement of $700 million in funding for the coal industry further underscores the political divide.#one_big_beautiful_bill_act #ember #nicolas_fulghum #evergreen_action #national_mining_association
Student Loan Borrowers Gain Two New Repayment Options Starting July 1 Millions of federal student loan borrowers will have access to two new repayment plans beginning on July 1, as part of changes introduced by the One Big Beautiful Bill Act. These updates replace some existing repayment options, offering borrowers more flexibility but also requiring careful consideration to choose the most suitable plan. The Repayment Assistance Plan (RAP), a new income-driven repayment (IDR) option, sets monthly payments as a percentage of a borrower’s income, with rates ranging from 1% to 10% of earnings. Unlike previous IDR plans, RAP does not shield a portion of income from calculations and instead uses adjusted gross income (AGI), which is total earnings before taxes minus certain deductions. Borrowers will also face a minimum monthly payment of $10, a change from some current IDR plans that allow certain low-income borrowers to pay $0. RAP also offers a $50 monthly discount for each qualifying dependent and may provide subsidies to those who are making payments but not reducing principal. Additionally, payments under RAP count toward the Public Service Loan Forgiveness (PSLF) program’s 10-year timeline, which benefits not-for-profit and government employees. The Tiered Standard Plan, the second new option, replaces the traditional Standard Plan by offering fixed payments spread over four different repayment periods, depending on the borrower’s total debt. Borrowers with balances up to $24,999 will still repay over 10 years, while those with $25,000 to $49,999 will have a 15-year term, $50,000 to $99,999 will take 20 years, and those with over $100,000 will repay over 25 years. This structure allows for tailored repayment timelines based on debt size.#repayment_assistance_plan #one_big_beautiful_bill_act #tiered_standard_plan #income_based_repayment #public_service_loan_forgiveness
IRS Warns Taxpayers About Fake Tax Calculators Promising Bigger Refunds The Internal Revenue Service is cautioning taxpayers about online tools that falsely promise large refunds, urging individuals to use only official, trusted resources for tax calculations. The warning comes as the IRS continues processing tax returns and issuing refunds, with significant increases in average refunds compared to the same period last year. The IRS highlighted that scammers are exploiting the complexity of the tax code by creating fake calculators that claim to guarantee unusually large refunds. These tools often mislead users by suggesting eligibility for new tax credits or deductions under the One Big Beautiful Bill Act, which introduced several changes to tax laws. The agency emphasized that no legitimate calculator can guarantee a refund amount, as tax outcomes depend on accurate and complete information provided by taxpayers. As of March 27, the IRS had processed 88.4 million individual tax returns, a slight decline of 1.3% compared to the same period in 2025. Despite this, the agency issued over 62.9 million refunds, with an average refund of $3,521—a 11.1% increase from the same time last year. The total refunds issued reached $221.697 billion, up 13.6% from the previous year. However, the IRS noted that many taxpayers do not qualify for the new deductions and are not receiving the full benefits of the updated tax law. The warning against fake calculators was prompted by complaints received earlier in the year about dubious online tools that falsely promised inflated refunds. These scams often mimic legitimate tax software or government websites, using misspelled URLs like "irsgov.com" or "irs-gov.org" to trick users into entering sensitive information.#irs #one_big_beautiful_bill_act #tax_withholding_estimator #sales_tax_deduction_calculator #phishingirsgov
Common Tax Mistakes That Cost Taxpayers More Money During Filing Season Tax season is inherently stressful, but avoidable errors can transform a routine filing into a costly ordeal. With Tax Day just 10 days away, even minor mistakes can lead to delays, IRS notices, or unexpected penalties. Here are five common filing missteps to avoid and how to prevent them. Choosing the Wrong Filing Status Your filing status is a critical determinant of your tax rate, standard deduction, and eligibility for credits. Selecting the incorrect status can result in overpayment, a smaller refund, or delays if the IRS flags the return for review. Confusion often arises from life changes such as marriage, divorce, having a child, or supporting an aging parent. For example, claiming "head of household" incorrectly can lead to penalties if the taxpayer does not meet the strict criteria, such as paying more than half the cost of maintaining a home and having a qualifying dependent. The IRS provides an online tool to help taxpayers determine their status, and many tax software programs offer guidance through interactive questionnaires. Leaving Credits on the Table Failing to claim all eligible credits or deductions is one of the most expensive mistakes taxpayers can make. This can reduce refunds or increase tax bills. Bill Sweeney, senior vice president of government affairs at AARP, emphasized that many taxpayers overlook available deductions due to a lack of awareness or reliance on last year’s return. Recent changes to the tax code, including provisions from the One Big Beautiful Bill Act, mean that strategies from previous years may no longer apply. Sweeney urged taxpayers to conduct a fresh review of their financial situation to identify potential savings.#aarp #irs #one_big_beautiful_bill_act #mike_faulkender #bill_sweeney
