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Social Security beneficiaries may face an across-the-board benefit cut in the next decade if Congress does not take action sooner.
While Congress seems to be at a standstill, some say a bipartisan commission is the answer.
Here’s why the idea has drawn both fierce opposition and fierce support.

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A protester interrupted a January congressional committee hearing to consider a bill that would create a bipartisan commission to address Social Security. “A vote for a commission is a vote to cut Social Security,” the man shouted before he was escorted off the floor.
While there was a protest of one that day, there has been a chorus of opposition to the idea of creating a commission, as well as strong support — from experts and politicians on both the left and the right.

The combined trust funds Social Security relies on to pay benefits are now projected to be depleted in 2035. On that date, the program will be able to pay just 83% of benefits.
But another date — the depletion of the trust fund specifically devoted to retirement benefits — is approaching sooner. Less than a decade from now, in 2033, Social Security may pay just 79% of those benefits.
Most Americans, 89%, think Congress should act immediately to make sure full benefits are available to both current and future beneficiaries, a 2023 AARP poll found. And 90% said Republicans and Democrats should work together to find a solution.

“We all as Americans want to get ourselves into a room, face the facts, make the hard choices and then communicate with the public about how we save this program,” said Rep. Scott Peters, D-Calif., in an interview with CNBC.
Peters is pushing for the Fiscal Commission Act alongside Rep. Bill Huizenga, R-Mich., and Sens. Joe Manchin, I-W.Va., and Mitt Romney, R-Utah.

The bill would create a commission to provide policy recommendations to address the federal government’s long-term fiscal issues, and those proposals could get expedited consideration from Congress. The commission would also be responsible for a public awareness campaign to educate Americans about the country’s current fiscal situation.
Another Democratic leader — Rep. John Larson of Connecticut — has vehemently opposed the proposal, due to the closed-door nature of the negotiations and the priority consideration any ensuing recommendations would receive.
“It’s probably one of the most undemocratic things that a Congress has ever put forward,” Larson said.
Instead, Larson is championing his own bill, Social Security 2100, to improve the program’s solvency and expand benefits through tax increases targeted at the wealthy.
Social Security advocacy groups have also staunchly opposed efforts to create a commission.
“This is a thinly veiled effort to avoid political accountability,” Nancy Altman, president of Social Security Works, recently testified in an April congressional committee hearing.

How the last major reforms, in 1983, came together

President Ronald Reagan signs the Social Security Act Amendment into law on April 20, 1983.
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The last major Social Security reforms, which were enacted in 1983, were preceded by a commission.
The National Commission on Social Security Reform, formed in 1981, is often called the Greenspan Commission, after its chairman, economist Alan Greenspan, who more famously served as chairman of the Federal Reserve.
“Most commissions, of course, don’t do anything,” Greenspan wrote in his 2007 memoir, “The Age of Turbulence.” “But [White House chief of staff] Jim Baker, the architect of this one, believed passionately the government could be made to work.”
The bipartisan commission included 15 members chosen either by the White House, the Senate majority leader or the Speaker of the House. Every commissioner was an “all-star in his or her field,” according to Greenspan.
“I ran the commission in the spirit that Jim Baker had envisioned, aiming for an effective bipartisan compromise,” Greenspan wrote.
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The group had a tall task — to come up with recommendations to solve the financing crisis the program faced at the time.
The Social Security amendments President Ronald Reagan signed into law in 1983 “involved pain for everyone,” Greenspan wrote.
The changes involved taxes on Social Security benefits, increases to payroll tax rates, a future increase to the retirement age and a near-term postponement of cost-of-living adjustments.
At the time, the changes were projected to enable Social Security to pay full benefits through 2057.
Today, the projected date is 2035, with rising income inequality contributing to the depletion dates being pushed up, according to the Economic Policy Institute and other experts. Social Security payroll taxes are capped at $168,600 in earnings. As wage growth for high earners outpaces average wage growth, more income falls above the threshold where it is not subject to Social Security payroll taxes, the EPI says.

‘Not an example of a successful bipartisan commission’

The 1983 legislation is often touted as a grand bipartisan bargain between Reagan, a Republican, and House Speaker Tip O’Neill, a Democratic congressman from Massachusetts.
Yet some Greenspan Commission participants have opposed using it as a future model for reform.
One prominent critic was Robert M. Ball, who served as the commissioner for Social Security under three presidents and who represented O’Neill on the Greenspan Commission.
“Nothing, however, should obscure the fact that the National Commission on Social Security Reform was not an example of a successful bipartisan commission,” Ball wrote in a portion of the memoir he was working on when he died in 2008. The memoir, “The Greenspan Commission: What Really Happened,” was published in 2010.
“The commission itself stalled — essentially deadlocked despite continuing to talk — after reaching agreement on the size of the problem that needed to be addressed,” Ball wrote. “As a commission, that was as far as it got.”

Social Security Commission Chairman Alan Greenspan, left, shakes hands with Sen. Charles Grassley, R-Iowa, prior to a Social Security hearing on Feb. 15, 1983. At right is Sen. Bob Dole, R-Kan., chairman of the Senate Finance Committee. In the background is Sen. John Danforth, R-Mo.
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More recently, in November, five staff members who worked on the commission — including Altman of Social Security Works, who served as Greenspan’s executive assistant — issued a statement to urge policymakers not to use it as a model to fast-track changes including benefit cuts.
“In the end, they left a big hunk of the problem to be solved by the Congress, which solved it,” Bruce D. Schobel, who served as a staff actuary on the commission and signed the statement, said in an interview with CNBC.
The increase to the retirement age that is still getting phased in today resulted from House amendment, rather than from a commission recommendation, the staff members said in their statement.
Since 1983, there have been similar efforts to create a commission to consider Social Security that have failed, the staff members noted.
“Congress should address Social Security in the sunshine through regular order, as it always has,” the staff members wrote.

Lawmakers divided on best path forward

Today, lawmakers are divided on the best path forward to address Social Security.
Larson, the Democratic congressman representing Connecticut, hopes to advance his bill.
The Social Security 2100 proposal currently has almost 200 Democratic House co-sponsors. The bill would provide a host of benefit increases — including a 2% across-the-board benefit boost — which would be paid for by adding Social Security payroll and investment taxes for individuals with earnings above $400,000.
A similar proposal put forward by Sens. Elizabeth Warren, D-Mass., and Bernie Sanders, I-Vt., would apply tax increases for earnings over $250,000.
If the Social Security 2100 bill makes it to the floor, it may pass “overwhelmingly” on a bipartisan basis, Larson predicts.
“Congress needs to vote,” Larson said.
But Peters — the Democratic congressman representing California — said he believes a bipartisan commission is the answer after Social Security 2100 failed to move forward even under Democratic control of the White House and Congress.
“I think the other efforts are honest efforts and they’re just not going to pass,” Peters said.

House Minority Leader Hakeem Jeffries, D-N.Y., conducts a news conference on Democrats’ plan to “secure and expand” Social Security, in the Capitol Visitor Center, May 23, 2023. From left are Reps. John Larson, D-Conn., Brian Higgins, D-N.Y., Jimmy Gomez, D-Calif., Jeffries, Dan Kildee, D-Mich., and Richard Neal, D-Mass.
Tom Williams | CQ-Roll Call, Inc. | Getty Images

He said that by waiting until the last minute ahead of the projected depletion date, lawmakers who are facing a 21% across-the-board benefit cut may instead negotiate that down to 15%.
“If I wanted to cut Social Security, [if] that was my goal, what I would do is do nothing,” Peters said. “My goal is not to have any cuts.”
The 1983 reform efforts are a lesson to not wait until the last minute, he said.
“When you say, ‘Don’t touch Social Security’ in the situation it’s in, it’s like telling the doctor not to treat the cancer patient in the hospital,” Peters said. “It’s just dumb.”
The Fiscal Commission Act has drawn criticism from both Social Security advocates on the left and notable figures on the right, including former House Speaker Newt Gingrich and Grover Norquist, president of Americans for Tax Reform.
Peters takes opposition as a sign they’re in the “right spot” for bipartisanship.
“I don’t understand why anyone would do this job if they don’t want to fix these big problems,” Peters said. “And that’s why we’re sent here explicitly.”
Experts including Altman have said the future of Social Security is on the ballot this November.
The AARP is posing one question — What is your position on Social Security? — to all candidates for federal office this year. More

Generation Z is beginning to invest at age 19 on average, which is significantly younger than prior generations.
Setting aside $5,000 a year each year starting at age 19 could yield $500,000 more at retirement than starting at age 25.
Most Americans trust information from advisors and accountants more than social media finance influencers.

Eternity In An Instant | Stone | Getty Images

The financial benefit of starting to invest early

The time element is crucial for investing. A teenager opening a retirement savings account could end up with hundreds of thousands more dollars compared to someone who began saving in their 20s.
For example, say you put aside $5,000 a year each year until you retire at age 65, and earn an average annual return of 7%. An investor who starts at age 25 could end up with roughly $998,000, while someone who starts at age 19 — despite contributing only $30,000 more — might end up with more than $1.5 million. Delaying until 30 would yield about $691,000. 

Experts suggest an easy way for young people to build wealth is by opening an individual retirement account that allows you to contribute after-tax dollars, also known as a Roth IRA. Roth IRAs offer tax-free growth, and the money can typically be withdrawn tax-free in retirement.
“Every young person, the minute they get their first job, should only be doing Roth IRAs if they qualify, or Roth 401(k)s,” said Ed Slott, an IRA expert and certified public accountant. “Get the vehicle, the receptacle, the Roth IRA set up and it’s more likely they’ll make it a habit for the rest of their lives as they see their account grow.”

Trust advisors, not TikTok

Much of Gen Z’s confidence about investing comes from the growing accessibility of financial resources, according to the Schwab report. More than a quarter of Gen Z, 28%, say they learned about investing in school, compared with 19% of millennials and 12% of Gen X.
There’s also a greater abundance of information available online and on social media that older generations did not have access to, especially at such early ages. However, experts recommend turning to a trusted financial advisor before taking advice from social media.
“There’s a lot of information out there, but that does not equate to knowledge or context or sometimes the hype of certain parts of the markets that feel attractive, but may not be very good for your long-term investment health,” Williams said. “It’s like being attracted to an ice cream cone versus, you know, the more boring balanced diet, to build wealth over time.”

Most Americans are swiping past the “finfluencer” content showing up on social media, the survey shows.
About three-quarters, or 76%, of Schwab survey respondents said they don’t follow any finance influencers, and 65% reported that social media has no impact on their investments. Overall, respondents said they are more likely to engage with a financial advisor (57%) than social media platforms (42%) for financial advice.

Should people with student loans be investing?

A growing concern for many young people is student loans. In the second quarter of 2024, 6.8 million borrowers under 24 hold a total of $99 billion in federal student loan debt, U.S. Department of Education data shows. That number is even higher, at $490 billion, for the 14.8 million borrowers ages 25 to 34. 

However, experts say it shouldn’t hold anyone back from investing.
“If anybody ever waited until they were debt free to do anything, they would never do anything,” Slott said.
But balancing debt repayment and investing for future goals is important. Williams recommends people make the minimum payment on their loans and start small with retirement savings — even if that means putting aside just $100 a month.
As more payments are made and the student loan debt shrinks, he said, “you’ve already started to grow some retirement savings, and you’ll have more from your budget, then, to commit.” More

During the first quarter, average retirement account balances reached the highest levels since the fourth quarter of 2021, according to Fidelity.
For workers to gauge their savings success, it can help to know how their industry peers are doing.

Jose Luis Pelaez Inc

To gauge your retirement preparedness, you may compare your 401(k) balance with other savers’ progress. But you might find that people in your field are a better comparison point than those in your age group.
Recent data from Fidelity finds that 401(k) plan investors on the firm’s platform had a $125,900 average 401(k) balance in the first quarter.

When broken down by age, the average balance was $241,200 for baby boomers, $178,500 for Gen X, $59,800 for millennials and $11,300 for Gen Z.
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Yet comparing balances by industry may help savers better gauge how they compare with their fellow workers.
Fidelity put industry data together so the companies on its 401(k) platform could better understand their employees’ savings behavior, according to Mike Shamrell, vice president of thought leadership for workplace investing at Fidelity.
“We still have a lot of companies that are really in a war for talent,” said Shamrell, and their 401(k) plans are often a hiring tool.

“They want to make sure that what they’re doing is aligned with the companies that they’re competing with for talent,” Shamrell said.

The average 401(k) balance tends to be higher in industries where pay is greater, he noted.
Legal services is at the top of that list, with a $306,400 average 401(k) balance.
The petrochemical industry came in second, with $255,500, followed by energy production/distribution, with $214,400.
Industries with the lowest average 401(k) balance include retail trade, with $51,200; health care excluding physicians, with $66,600; and real estate, with $70,700.  

What experts say to focus on instead

Instead of balances, a better metric to gauge workers’ retirement savings success is their total savings rate, experts say. Fidelity generally advises workers to aim to set aside 15% of their pre-tax income, including employer contributions, toward retirement.
Overall, Fidelity’s 401(k) participants had an average total savings rate of 14.2%, including employee and employer contributions — the closest it has ever been to the firm’s recommended savings rate.

While workers may get distracted by how big they think their nest egg needs to be in order to retire — with one recent Northwestern Mutual survey suggesting people believe they need $1.46 million to live comfortably in retirement — experts say it’s generally best to focus on a consistently high savings rate.
Industries where the total savings rate is highest include pharmaceuticals, with a total savings rate of 19.7%; petrochemicals, 19.1%; and airlines, 18.4%.
Industries with the lowest average total savings rate include retail trade, 10.4%; health care, excluding physicians, with 10.9%; and construction and scientific and technical, each with 12.3%.

Where employer help is most generous

Of course, to have a high total savings rate, it helps to have generous help from employers. The overall average employer contribution rate is 4.8%, according to Fidelity.
The industries where employer contribution rates are highest include petrochemicals, with 8.2%; and pharmaceuticals and airlines, each with 7.8%.
The industries where employer contribution rates are lowest include health care, excluding physicians, with 2.9%; retail trade, 3%; and scientific and technical, 3.1%.  
To be sure, any retirement savings progress may be diminished if investors take out a 401(k) loan, as 17.8% of Fidelity’s plan participants have. More

YOUR GUIDE TO NAVIGATING YOUR FINANCIAL FUTURE

The second-quarter estimated tax deadline for 2024 is June 17 and you could trigger a penalty if you don’t send a payment.
Filers may owe estimated taxes with earnings from self-employment, gig economy work, small businesses, investments and more.
You can avoid late-payment penalties by sending 90% of 2024 taxes or 100% of your 2023 levies if your adjusted gross income is less than $150,000.

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The second-quarter estimated tax deadline for 2024 is June 17, and you could owe a penalty if you don’t send a payment, according to the IRS.
You typically owe estimated tax payments for income without withholdings, such as from contract jobs, freelancing or gig economy work, or if you run a small business.

But quarterly estimated tax payments are not just for the self-employed or small business owners, experts say.
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For example, you may need a quarterly payment after a large distribution from a pretax individual retirement account or a significant profit from selling an asset, according to certified financial planner Kelly Renner at Life Strategies Financial Partners in Augusta, Georgia.
You must make quarterly estimated tax payments if you expect to have at least $1,000 in tax liability or more on your 2024 return.
For the 2024 tax year, the estimated tax deadlines are April 15, June 17, Sept. 16 and Jan. 15, 2025. If you skip these deadlines, you could trigger an interest-based penalty calculated using the current interest rate and balance due.

Avoid a penalty by meeting the ‘safe harbor’ rules

It is possible to avoid penalties for missed estimated tax payments by meeting “safe harbor rules” from the IRS, explained Sheneya Wilson, a certified public accountant and founder of Fola Financial in New York.
You meet the safe harbor rules by paying at least 90% of the current year’s tax liability or 100% of last year’s taxes, whichever is smaller.
However, that threshold climbs to 110% if your adjusted gross income from 2023 was $150,000 or higher. You can find adjusted gross income on line 11 of Form 1040 from your 2023 tax return.

While the safe harbor protects from penalties, you could still owe taxes for 2024 if you earn more than 2023 and don’t make higher estimated payments.
If you are expecting “rapid income growth” for 2024, you should work with a tax professional for a “proper tax plan and projection,” Wilson said.

How to make quarterly estimated tax payments

The “most secure, fastest and easiest way” to make estimated tax payments is online, according to the IRS.
You can use your online account, IRS Direct Pay or the U.S. Department of the Treasury’s Electronic Federal Tax Payment System, or EFTPS.
“Every taxpayer should have an account with IRS.gov,” which makes it easy to make payments and reconcile transactions, Wilson explained.
However, if you prefer to mail payments, experts suggest using certified mail with a return receipt for proof of an on-time payment.

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More homeowners are listing their homes for sale.
But properties are taking longer to sell as potential buyers face high prices and interest rates.
Here’s what that means for homebuyers and sellers.

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More homeowners are listing their homes for sale, but properties are taking longer to sell as potential buyers face high prices and interest rates.
New listings from home sellers jumped in May, up 13% from a year ago, according to the latest market report by Zillow.

“You have an increase in sellers coming back on the market,” said Orphe Divounguy, a senior economist at Zillow.
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But with buyers not returning to the market, many new listings are just adding to inventory. The number of homes on the market rose 22% compared with last year, Zillow found.
“Homes are staying on the market for a bit longer because the sales are not keeping up with the flow of homes coming on the market,” Divounguy said.

‘The market is slowing down’

Almost two-thirds, or 61.9%, of homes listed on the market in May had been for sale for at least 30 days without going under contract, according to a new analysis by Redfin. About 40.1% of homes that were for sale in May had been listed for at least two months without going under contract, Redfin found.

“The market is slowing down. Homes are taking longer to sell and that allows inventory to accumulate on the market,” said Daryl Fairweather, chief economist at Redfin.

Yet despite the recent jump in supply, “we’re still starved for inventory in the for-sale market,” said Divounguy. The housing inventory in the U.S. is still 34% below pre-pandemic levels, according to Zillow.
“We’re short nationwide of about 4.3 million homes,” he said. “We’re still in a housing unit deficit.”

Homebuyers are waiting on lower mortgage rates

As mortgage rates have remained high and housing affordability has strained household finances, buyers have been unable to enter the market, Divounguy explained.
“Buyers are facing these incredibly high mortgage rates, at least relative to what they were during the pandemic,” said Fairweather, who believes homebuyers might lack the motivation and financial ability to purchase a home.
The 30-year fixed rate mortgage in the U.S. slid to 6.95% on June 13, lower from 6.99% a week prior, according to Freddie Mac data via the Federal Reserve. 

While mortgage rates could “change pretty quickly” or “on a dime,” said Fairweather, buyers are unlikely to see big movement in the near term. The Fed held rates steady at its June meeting and now anticipates just one rate cut this year. Its next meeting is July 30-31.
“There’s no right answer for homebuyers who are deciding whether to wait or not,” Fairweather said. “It’s just up to chance when mortgage rates drop. Nobody really knows when that will happen, so it’s hard to plan your life around that.”

What to do if you’re a buyer or a seller

Some markets in the U.S. are seeing a significant increase in unsold inventory. About 60.5% of listings in Dallas, Texas, stayed on the market for at least 30 days, up from 53% a year earlier, according to Redfin.
In Fort Lauderdale, Florida, the share of unsold listings that have stayed on the market for at least 30 days is 75.5%, up from 68.2% a year prior, Redfin found.
A similar increase is happening in two other areas in Florida. The share of unsold homes in Tampa that have been on the market for 30 days is 68.7%, up from 61.9% a year ago; in Jacksonville, 69.2%, up from 62.9% in the same period, per Redfin data.
“When you give buyers more options, that means they have more bargaining power,” Divounguy said.
If you notice homes for sale linger on the market for longer in your area, “there’s probably an opportunity to get [a property] for under its listed price,” Fairweather said.
If you make it into the home inspection process and you learn about issues that were neither noticeable during the initial walkthrough nor disclosed, it may be worth asking the home seller to do repairs, she said. 
But don’t overdo it: “You don’t want to be nit-picky and ask for every single repair,” such as chipped paint, Fairweather said. 

Other markets are still in favor of home sellers as inventory remains tight, Divounguy said. Not only do many homeowners have record home equity, they also have low mortgage payments.
If a home seller needs to move this year due to upcoming life changes and their area is experiencing high levels of unsold listings, they may need to be prepared to cut their asking price to draw interest.
“Price cuts sell homes,” he said. More

Deflation occurs when prices are falling for consumer goods and services. It’s the opposite of inflation.
Prices have deflated over the past year in some categories, according to the consumer price index.
The dynamic has largely occurred for physical goods such as furniture, cars and electronics. Prices for travel and for some groceries have fallen, too.

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Consumers saw prices for some goods and services deflate in May, amid a backdrop of broadly easing inflationary pressures.
Whereas inflation is a measure of how quickly consumer prices are rising, deflation is the opposite: It gauges how quickly they’re declining.

There are currently some “micro pockets” of deflation in the U.S. economy, said Joe Seydl, a senior markets economist at J.P. Morgan Private Bank.

In these pockets, there was an “extreme disconnect” between supply and demand during the Covid-19 pandemic that sent prices soaring, Seydl said. Prices are now normalizing as those dynamics unwind, he said.
However, Americans shouldn’t expect deflation across the broad U.S. economy, economists said.
“Consumers would love to have the prices they had back in 2019,” Seydl said. “But we very likely won’t see that, unless we have a major recession.”

Why prices are deflating for goods

Consumers have largely seen prices deflate for physical goods, such as cars, furniture and appliances, economists said.

For example, households have seen prices for furniture and bedding fall by 3.7% since May 2023, according to the consumer price index. Those for laundry equipment, dishes and flatware, and outdoor equipment and supplies are down 8.8%, 8.1% and 5%, respectively.

Prices have also fallen for new cars by 1.4% in the past year, while those for used cars and trucks decreased 9.3%. Vehicle prices were among the first to surge when the economy reopened broadly early in 2021, amid a shortage of semiconductor chips essential for manufacturing.
Demand for physical goods soared in the early days of the Covid pandemic as consumers were confined to their homes and couldn’t spend on things such as concerts, travel or dining out.
“A lot of that funding found itself in new cars and home renovations,” said Michael Pugliese, a senior economist at Wells Fargo Economics.
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The health crisis also snarled global supply chains, meaning goods weren’t hitting the shelves as quickly as consumers wanted them.
Such supply-and-demand dynamics drove up prices.
Now, however, they’ve fallen back to earth. The initial pandemic-era craze of consumers fixing up their homes and upgrading their home offices has diminished, cooling prices. Supply-chain issues have also largely unwound, economists said.
Overall physical goods prices, excluding food and energy commodities, have deflated in all but one month since May 2023, for example, according to Bureau of Labor Statistics data. Goods prices are down 1.7% over the past year.

The U.S. dollar’s strength relative to other global currencies has also helped rein in prices for goods, economists said. This makes it less expensive for U.S. companies to import items from overseas, since the dollar can buy more.
The Nominal Broad U.S. Dollar Index is higher than at any pre-pandemic point dating to at least 2006, according to Federal Reserve data. The index gauges the dollar’s appreciation relative to currencies of the nation’s main trading partners such as the euro, the Canadian dollar and the Japanese yen.

Deflation for groceries, travel and electronics

Prices have also declined in the past year for some non-goods items.
For example, grocery prices have fallen for items such as ham, rice, fresh fish and seafood, milk, potatoes, coffee, margarine and cheese. Notably, consumers have seen apple prices fall 13.2% in the past year amid burgeoning supply.
Each grocery item has unique supply-and-demand dynamics that can influence pricing, economists said. Egg prices, for example, spiked in 2022 due largely to a historic and deadly outbreak of bird flu and have since fallen.

Travelers have also seen deflation for airline fares, down 5.9%, hotel rates, down 1.7%, and car rental rates, down 8.8%, since May 2023. For example, airlines have increased the volume of available seats for travelers by flying larger planes on domestic routes, which has helped push down prices, Hayley Berg, lead economist at travel site Hopper, wrote recently.
Additionally, evidence suggests “consumers are becoming a bit more price sensitive,” said Olivia Cross, a North America economist at Capital Economics.
That behavior is a gut check for retailers, who may find they need to offer more competitive prices to attract customers, she said.

Elsewhere, some deflationary dynamics may be happening only on paper.
For example, in the CPI data, the Bureau of Labor Statistics controls for quality improvements over time. Electronics such as televisions, cellphones and computers continually get better, meaning consumers generally get more for the same amount of money.
That shows up as a price decline in the CPI data. More

President Joe Biden’s top economic advisor on Thursday unveiled plans to address the battle over trillions of dollars in expiring tax breaks enacted by former President Donald Trump.
After 2025, several provisions from the Tax Cuts and Jobs Act, or TCJA, of 2017 will expire without action from Congress, which could increase taxes for more than 60% of filers.
White House National Economic Advisor Lael Brainard unveiled Biden’s “key principles” for the multitrillion-dollar tax debate.

Director of the National Economic Council Lael Brainard speaks at the White House in Washington, D.C., on Jan. 11, 2024.
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President Joe Biden’s top economic advisor on Thursday unveiled plans to address trillions of dollars in expiring tax breaks enacted by former President Donald Trump.
After 2025, several provisions from the Tax Cuts and Jobs Act, or TCJA, of 2017 will expire without action from Congress, which could increase taxes for more than 60% of filers, according to the Tax Foundation.

Some expiring individual provisions include lower federal income tax brackets, a higher standard deduction, a more generous child tax credit and doubled estate and gift tax exemption, among others.
“President Biden plans to extend tax cuts for hardworking Americans by making sure the wealthiest and big corporations pay their fair share,” White House National Economic Advisor Lael Brainard told reporters Wednesday evening during a press call.
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Biden will follow “key principles” to support middle-class and working families as the 2025 tax cliff approaches, Brainard said.
Expiring TCJA provisions could affect all Americans, but Brainard reaffirmed Biden’s pledge to extend tax breaks only for those making less than $400,000. Aiming to raise revenue for his “commitment to seniors and fiscal responsibility,” Biden would allow TCJA provisions to expire for those making more than $400,000, Brainard said.

By comparison, former President Donald Trump has said he plans to extend all expiring TCJA provisions.

Fully extending TCJA provisions could add an estimated $4.6 trillion to the deficit over the next decade, according to the Congressional Budget Office.
Trump hasn’t released specific plans on how to fund expiring TCJA provisions but has voiced support for tariffs, which are taxes levied on imported goods from another country.In a statement, Trump campaign National Press Secretary Karoline Leavitt said Trump was proud to have passed the TCJA and if reelected would “advocate for more tax cuts for all Americans.”

While the TCJA permanently reduced the top federal corporate tax rate from 35% to 21%, Biden aims to raise corporate taxes and implement a global minimum tax, according to Brainard.
The plan also called for sustained IRS funding, which has been targeted by Republicans since Congress approved nearly $80 billion in funding via the Inflation Reduction Act.

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Roughly 1 in 5 (19%) of homeowners found the cost of home improvement projects to be the most surprising element in the first six months of homeownership, according to a new report by home services site Angi.
Annual “hidden costs” of homeownership average around $18,000 nationwide, according to a separate report by Bankrate.com.
Here are ways buyers can prepare and potentially reduce unexpected costs.

Senior couple repairing kitchen cabinet at home
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Alex Marrero and his wife bought their first home this spring in Coral Springs, Florida — and the couple has already spent nearly $17,000 on home maintenance, repairs and installations. 
While they knew they needed to do improvements from “the minute they bought the house,” Marrero said, some were more expensive than anticipated.

For example, he estimated four hurricane impact-resistant windows and a garage door would cost between $4,000 to $5,000. But after multiple quotes from contractors, he ended up paying $9,800.
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Since their mid-April home purchase, the couple also hired contractors to refinish their scratched-up wood floors for a total $2,200; installed a pool safety fence for $1,673; removed popcorn finishing from the garage ceiling for $800; had someone prime and paint ceiling texture for $650; and replaced cracked roof tiles for $1,670.
“We’re still kind of anticipating more expenses,” said Marrero, 33. “I know the pool pump is on its last leg. So, we’re bracing.”

‘Understanding that process is enlightening’

Marrero’s experience isn’t unique.

Experts say the “hidden costs” of owning a home, especially repairs and maintenance, can come as a shock for homeowners.
Roughly 1 in 5 (19%) of homeowners found the cost of home improvement projects to be the most surprising element in the first six months of homeownership, according to a new report by Angi, an online marketplace that connects homeowners with professional contractors for home maintenance or renovations. In late May, the site polled a total of 1,000 Americans who bought a home in the past five years. 
“Living in an apartment, they’re likely not hiring home improvement contractors, so I think there’s kind of the realization of just, how much does it cost to hire a plumber,” said Angie Hicks, co-founder of Angi.
“Understanding that process is enlightening for them,” she said.

Annual “hidden costs” of homeownership average around $18,000 nationwide, according to a separate report by Bankrate.com. Its report estimated home maintenance at 2% a year of the value of a home.
Based on that calculation, Bankrate estimated, annual maintenance costs in some of the states with the highest home prices — like California, Hawaii and Massachusetts — can go over $26,000 annually.
Meanwhile, in Kentucky, which Bankrate pointed to as the least expensive state, annual maintenance might be around $5,000.
First-time homeowners are less likely to be aware of those costs than those who have previously owned a home, Angi found, and more likely to say they spent more than expected on home maintenance, improvements and emergencies.
“Once you’ve been a homeowner for a while, you realize everything that can go wrong,” Jeff Ostrowski, an analyst at Bankrate.com, recently told CNBC. 
Here are things you should consider when shopping for a home and as a new homeowner, to help limit maintenance surprises:

1. Have a home inspector lined up

In April, around 19% of buyers waived the home inspection, down from 22% one month prior and 21% a year earlier, according to the National Association of Realtors.
Sometimes home inspections are skipped because they have to be done in a quick time frame and “you start to make choices that may not be ideal” out of the fear you’ll lose the home, Hicks said.

But hiring a home inspector is essential, said Dan Bawden, a residential construction expert and president of Legal Eagle Contractors Co. in Bellaire, Texas.
“That’s probably the most important thing you can do,” he said.
Typically, home inspectors need one week’s notice on average, he said, so keep that in mind as you start looking at homes.
Ask real estate agents for referrals on licensed home inspectors in your area who will conduct a thorough service, Bawden said.
“Instead of spending $450, you might spend $600 for somebody that’s better, but that’s money well spent,” he said. “You want them to find as many things as possible.”

2. Look for ‘deal breakers’ in the home inspection

JGI/Tom Grill | Tetra images | Getty Images

The home inspection is “an important element” in the homebuying process because you can discover elements in a house that could be a “deal breaker,” said Hicks.
Be present for the inspection, if you can.
“If you’re there with them, they will tell you what things are urgent or severe,” Bawden said.
For instance, if the house has many cracks along the doorway or windows, or feel a downward slope as you walk across a floor, it may have foundational issues, he said.
“You do not want to buy a house with foundation problems. They will get worse over time and they are expensive to fix,” Bawden said.
Other notable deal breakers include termite damage and water damage, he said.
An inspection can also help you understand the age of important elements, like the roof. Take advantage of the inspection process to ask questions about these elements, and then assess if you have the budget to cover those costs, or if it’s something worth asking the seller about, Hicks explained.
Having a complete list of problem areas noted in an inspection can help you prioritize repairs and potentially negotiate the purchase price of the home, said Bawden.

3. Keep your ‘critical eye’ as a homeowner

Once you become a homeowner, it will be important to keep up with routine maintenance in your house. “Don’t skip out on having that air conditioner or furnace tuned up,” said Hicks. “It’s like changing the oil on your car.”
To avoid surprises, try to regularly inspect your home and look for spots or corners that may need to be fixed. While homeowners are “the most critical” of a house when they’re buying, they often don’t keep the “critical eye” after moving in, said Hicks.

Have mechanical system checkups at least once a year, said Bowden, as well as plumbing and electrical system checkups.
“You need to be vigilant,” he said.
Correction: This story has been updated to correct a figure and a quote from Angie Hicks.

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