Business
Trump’s ‘big beautiful bill’ has ‘double taxation’ trap, lawyers say
Late evening view of US Capitol building in Washington DC, USA
Richard Sharrocks | Moment | Getty Images
A version of this article first appeared in CNBC’s Inside Wealth newsletter with Robert Frank, a weekly guide to the high-net-worth investor and consumer. Sign up to receive future editions, straight to your inbox.
The “one big beautiful bill” came with many tax benefits for top earners, despite limiting how much they can deduct. However, lawyers for the wealthy said they have discovered a surprise buried in the footnotes of a tax law guide released last week by Congress’ policy staff that could amount to double taxation.
The deduction cap is imposed on trusts and estates, the lawyers said, which was unexpected. Even if a trust gave all its income to its beneficiaries, it would have to pay taxes on a portion of that income, according to the lawyers’ interpretation of the document.
While the consequences are steeper for trusts and estates of the ultra-wealthy, trusts with as little as $16,000 in income would also be subject to additional taxes, the lawyers said.
“There is potentially an element of double taxation,” said Dan Griffith, director of wealth strategy at Huntington Bank. “This is something that is going to affect somebody with a $400,000 special-needs trust. It’s not just going to be something that $100 million dynasty trusts suffer with.”
Griffith said he is especially concerned about trusts that are obligated to distribute all their income. Trusts will either have to sell assets to pay the taxes, sacrificing future investment returns, or reduce their distributions to beneficiaries, he said.
This provision creates a “mathematical nightmare” for tax lawyers and financial advisors, according to Justin Miller, national director of wealth planning at Evercore Wealth Management. Miller gave the example of a wealthy couple wishing to leave their estate to charity.
“If I have to pay income taxes, that means I’m giving less money to charity because I’m giving money to the IRS. That means I now have to adjust my deduction even more because less money is going to charity,” he said. “Did Congress really intend to create an algebraic formula?”
Historically, trusts and estates have been able to deduct income given to beneficiaries, which is then taxed on the individual level. This distribution deduction is designed to make sure income is only taxed once.
However, the new deduction limitation on top-earning individuals now applies to trusts and estates, according to a footnote in the Joint Committee on Taxation’s recent tax explainer, better known as the Bluebook. The JCT is nonpartisan and serves to explain legislation.
The One Big Beautiful Bill Act’s limit on itemized deductions means that taxpayers in the top bracket only get a deduction benefit of 35 cents for every dollar, rather than 37 cents. It applies to charitable deductions, and experts say it has already influenced how top earners give.
While the Bluebook is an interpretation of the OBBBA rather than law in and of itself, this provision is causing concern in the financial advisory community, according to lawyer Robert Keebler. For instance, he frequently sets up trusts for clients on their second marriages that will provide their surviving spouse with income but leave the remainder for children from the first marriage.
Consider a trust that distributes all $370,000 of its net income to a widow, he said. Applying the deduction limit to trusts means that the trust can only deduct $350,000 from its distributable net income and $20,000 would be subject to taxes, even though the widow is taxed on the entire $370,000, according to Keebler. To pay the tax, the trust either has to dip into its corpus, reducing the children’s future benefit, or get permission to give less to the spouse, which can require going to court.
This provision applies to this tax year, according to Keebler.
The double taxation issue could be resolved by an amendment by Congress, or, more likely, guidance from the Department of the Treasury. Keebler is planning with the anticipation that it will stand.
“We hope for the best but plan for the worst,” he said.
The Department of the Treasury did not answer CNBC’s questions by press time.
Miller said it is “reasonable to hope” that the Treasury Department will issue guidance by the end of this year. However, the devil will be in the details for which deductions the department decides to limit, he said.
For instance, the department might allow trusts to take unlimited deductions on distributing income to beneficiaries such as family members, which would resolve the biggest concern for financial advisors, Miller said. The footnote in the Bluebook mentions this deduction.
But Miller noted that the Bluebook’s footnote does not mention charitable deductions for trusts and estates. He told CNBC that he thought the omission was intentional and that it is possible the Treasury will keep the deduction limit on charitable giving for trusts and estates.
A person familiar with the JCT’s procedures told CNBC that staff had interpreted from the OBBBA that the charitable deduction would be treated differently from other deductions. The person spoke on the condition of anonymity because they weren’t authorized to speak publicly on the matter.
With six months until the end of the year, what advisors need most is clarity, Miller said.
“We just need to know the rules,” he added. “At the end of the day, advisors just want to do the correct thing. Right now, we don’t know what that is.”
Materion Corp stock hits all-time high at 282.78 USD
Long only, focused on high quality businesses with economic moats and solid business fundamentals. Sector and geography agnostic. Long term investment horizon. None of the articles constitute investment advice.
Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, but may initiate a beneficial Long position through a purchase of the stock, or the purchase of call options or similar derivatives in TME over the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
Not investment advice.
Seeking Alpha’s Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.
Business
Xanadu Quantum Technologies Shares Rise as Company Advances Photonic Quantum Computing Research
TORONTO — Shares of Xanadu Quantum Technologies Inc. gained more than 1 percent on Thursday, closing at $11.68 after adding $0.12, as investors responded to the company’s progress in developing photonic quantum computing systems.
The Canadian company has emerged as a leader in the race to build practical quantum computers using light-based technology. Its approach differs from competitors focusing on superconducting or trapped-ion methods, potentially offering advantages in scalability and room-temperature operation.
Xanadu’s platform leverages photonic qubits that can be manipulated with standard optical components. This method could enable more stable quantum systems less susceptible to environmental noise and easier to network.
The company has secured significant funding and partnerships to advance its technology toward fault-tolerant quantum computing. Its Borealis system previously demonstrated quantum computational advantage, marking an important milestone in the field.
Technological Approach
Xanadu’s photonic quantum computing relies on generating, manipulating and measuring single photons. The company has developed proprietary techniques for creating entangled photon states necessary for quantum algorithms.
Its Strawberry Fields software platform allows researchers to program quantum circuits using familiar Python interfaces. This accessibility has helped attract talent and foster collaboration with academic and industry partners.
The company continues investing in hardware development, including improved photon sources, detectors and integrated photonic chips. These advancements aim to increase qubit counts and reduce error rates.
Partnerships with major technology companies and research institutions have accelerated progress. Collaborative projects explore potential applications in drug discovery, materials science and optimization problems.
Market Position and Competition
The quantum computing sector has attracted substantial investment from governments and private companies. Xanadu competes with established players including IBM, Google, IonQ and Rigetti while pursuing its unique photonic approach.
Advantages of photonics include potential for room-temperature operation and easier integration with existing optical communication infrastructure. These characteristics could facilitate scaling to larger systems.
Challenges remain in creating high-quality photon sources and efficient detectors. Xanadu’s progress in addressing these technical hurdles has drawn attention from the scientific community.
The company’s focus on error-corrected quantum computing aligns with industry goals of achieving practical quantum advantage. Its timeline for delivering useful applications will influence competitive positioning.
Broader Quantum Computing Landscape
Quantum computing promises to solve certain problems exponentially faster than classical computers. Potential applications span cryptography, pharmaceutical development, financial modeling and climate simulation.
Significant technical obstacles remain before large-scale, fault-tolerant systems become reality. Error rates, qubit connectivity and decoherence continue challenging researchers.
Government funding programs worldwide support quantum technology development. Canada has invested substantially in quantum research, providing a supportive environment for companies like Xanadu.
Private investment has also surged as companies seek competitive advantages through quantum capabilities. The sector’s growth reflects both excitement about potential breakthroughs and recognition of long development timelines.
Investment Considerations
Xanadu’s shares trade on NASDAQ following its public listing. The company’s valuation reflects expectations for quantum computing market growth and its technological differentiation.
Risks include technical development challenges, competition from better-funded rivals and long timelines to commercial revenue. Quantum computing remains an emerging field with uncertain commercialization schedules.
Longer-term opportunities are substantial if Xanadu achieves its technical milestones. Successful development of practical quantum computers could create enormous value across multiple industries.
Investors should consider the speculative nature of early-stage quantum technology companies. Xanadu’s progress will be measured against both internal goals and industry benchmarks.
Company Leadership and Culture
Xanadu was founded by researchers with deep expertise in quantum optics and photonics. The company’s leadership emphasizes scientific rigor and collaborative innovation.
Its Toronto headquarters and research facilities provide access to talent from leading Canadian universities. The company has grown rapidly while maintaining focus on fundamental research questions.
Corporate culture encourages curiosity and cross-disciplinary collaboration. This approach supports the complex problem-solving required for quantum technology development.
Future Outlook
Xanadu continues advancing its hardware and software platforms. Upcoming technical milestones could significantly impact its valuation and competitive position.
The company’s ability to attract talent, secure partnerships and demonstrate progress will influence its trajectory. Quantum computing development requires patience and sustained investment.
Industry observers expect continued growth in quantum technology investment and research activity. Xanadu’s photonic approach offers a distinct pathway that could prove advantageous as the field matures.
As quantum computing moves from laboratory demonstrations toward practical applications, companies like Xanadu will play important roles in realizing its potential. Their success could transform multiple industries and scientific disciplines.
The company’s recent share price movement reflects typical market dynamics in an emerging technology sector. Xanadu’s fundamental progress and strategic direction suggest potential for long-term impact in quantum computing.
Filippobacci | E+ | Getty Images
Luxury spending is expected to rebound this year, driven mainly by experiences rather than luxury goods, according to a new study.
After two years of declines, luxury goods sales are expected to grow between 1% and 4% in 2026, according to a report from Bain & Co. and Altagamma. Personal luxury goods sales are projected to reach between 365 billion euros and 373 billion euros (US$413.6 billion to US$422.7 billion) this year.
The tensions in the Middle East continue to dampen sales. Dubai, United Arab Emirates, was one of the fastest-growing luxury markets in the world before the Iran war but relies heavily on tourism and has yet to show signs of recovery. The report said that if the Middle East stabilizes and demand in China strengthens, luxury goods sales could post growth this year.
The U.S. is now the leading country for luxury goods growth for the first time since 2021, according to the report. It said that growth in the U.S. is being driven in large part by aspirational consumers.
At the same time, the priorities and spending of wealthy consumers around the world is shifting. The report said travel, events and dining experiences are becoming more important than buying status goods for show. While luxury goods sales are expected to grow between 1% and 4%, experiences are on track for growth of between 3% and 7% this year, the report said. Bookings in dining, leisure and entertainment are up around 30% this year.
“What we’re seeing across experiential luxury this year is resilience concentrated in the categories that offer something money can’t easily replicate: time, access and meaning,” said Claudia D’Arpizio, a senior partner at Bain & Co. “Luxury is increasingly about how people live rather than what they own.”
Trips to nontraditional and less crowded destinations are growing. “Immersive wayfaring,” or bespoke, slow-travel experiences rooted in discoveries and traditions are also growing more popular. Travel to nontraditional locations is up 20%, according to the report.
The report also cites the rise in “inheritourism,” in which wealthy families travel together and Gen Zers adopt the travel tastes and preferences of their parents.
Cruises in particular are drawing many first-time buyers along with repeat customers. Fine dining and gourmet food are being driven by a “less-but-better” mindset and fine arts are returning to growth.
“Consumers aren’t simply spending more; they’re spending differently, in pursuit of moments that feel personal and authentic,” D’Arpizio said.
Check out what’s clicking on FoxBusiness.com.
Buc-ee’s is fueling up for a larger national expansion, with 15 additional travel centers in the pipeline as the Texas-based chain pushes its empire farther beyond its home state.
The company opened its first Arizona location on Monday in Goodyear, a suburb of Phoenix, marking Buc-ee’s first stop in the Grand Canyon State and giving road-trippers another supersized destination for fuel, snacks and the chain’s famously clean restrooms, according to USA Today.
The 74,000-square-foot travel center features 120 fuel pumps and will operate 24 hours a day, 365 days a year. The store is expected to create more than 200 jobs, and city officials said as many as 40,000 vehicles could visit during opening day and the following week, the outlet reported.
BUC-EE’S SET TO DEBUT IN 6 NEW STATES IN MAJOR EXPANSION PUSH ACROSS US
Buc-ee’s has 15 additional travel centers in the pipeline as the Texas-based chain pushes its empire farther beyond its home state. (Getty)
“We could not have picked a better location for our first store in the Grand Canyon State. Perfectly placed for our road-trippers headed out to California or coming in for the destination-rich Phoenix area, Goodyear will be the place to stop,” Stan Beard, director of real estate development at Buc-ee’s Ltd., said in a statement.
Buc-ee’s, founded in 1982, has grown from a Texas roadside favorite into one of the state’s most recognizable exports. The chain now has 56 locations across 13 states.
More openings are already on the calendar for 2026. A Buc-ee’s spokesperson confirmed to FOX Business upcoming locations in San Marcos, Texas, on Aug. 12; Benton, Arkansas, on Aug. 17; and Murfreesboro, Tennessee, on Nov. 16.
BELOVED BUC-EE’S CONVENIENCE STORE CHAIN FACES CUSTOMER SERVICE CRISIS AFTER DEVASTATING ‘F’ RATING
The chain now has 56 locations across 13 states. (Valerie Plesch/For The Washington Post via Getty Images)
The company’s website also lists several planned locations but does not specify exact opening dates.
Six are expected in 2027: Ruston, Louisiana; Kansas City, Kansas; Gallaway, Tennessee; St. Lucie, Florida; Boerne, Texas; and Monroe County, Georgia.
Two more locations are listed for 2028: Mebane, North Carolina, and Lafayette, Louisiana.
WILDLY POPULAR GAS STATION BUC-EE’S TO OPEN FIRST-EVER LOCATIONS IN NEW STATES THIS SUMMER
Buc-ee’s, founded in 1982, has grown from a Texas roadside favorite into one of the state’s most recognizable exports. (Brandon Bell/Getty Images)
GET FOX BUSINESS ON THE GO BY CLICKING HERE
Additional stores are planned for 2029 and beyond, including Ocala, Florida; West Memphis, Arkansas; Oak Grove, Kentucky; and Hardeeville, South Carolina, which is listed for 2031.
Earlier this year, the company opened its first Ohio location in Huber Heights, according to FOX 8 News.
Clear Harbor Asset Management founder and CEO Aaron Kennon analyzes the Federal Reserve’s recent hawkish pivot under chairman Kevin Warsh on ‘Making Money.’
The Federal Reserve’s preferred inflation gauge rose in May as price pressures persist in the wake of the energy shock caused by the Iran war.
The Commerce Department on Thursday reported that the personal consumption expenditures (PCE) index rose 0.4% on a monthly basis in May and is 4.1% higher than a year ago.
The monthly figure came in slightly cooler than the expectations of economists polled by LSEG, who predicted a 0.5% rise, while the annual figure was in line with the estimate.
Core PCE, which excludes volatile measurements of food and energy prices, was up 0.3% on a monthly basis and 3.4% from a year ago. Both figures were in line with expectations.
FEDERAL RESERVE LEAVES INTEREST RATES UNCHANGED AS WARSH ERA BEGINS
Federal Reserve policymakers are focused on the PCE headline figure as they try to bring inflation back to their long-run target of 2%, though they view core data as a better indicator of inflation. Compared with April’s readings, headline PCE rose from 3.8% to 4.1%, while core PCE increased from 3.3% to 3.4%.
Goods prices were up 2.3% in May from a year ago, and were up 0.4% from the prior month.
Services prices rose 2% compared with a year ago, and were up 0.5% on a monthly basis in May.
US ECONOMY GREW AT 2.1% IN FIRST QUARTER
The personal savings rate as a percentage of disposable personal income was 3% in May, a level that was unchanged from the prior month.
Since the start of 2025, the personal savings rate has declined from a peak of 5.5% in April 2025, and it began this year with a 4.4% reading in January.
The energy price shock caused by the Iran war has helped drive inflation higher. (Ariana Drehsler/Bloomberg via Getty Images)
What experts are saying
Heather Long, chief economist at Navy Federal Credit Union, said that, “Inflation is at a 3-year high due to the war in Iran and it’s painful for middle-class and moderate-income Americans.”
“People are spending more on gas, along with healthcare and utilities. New Fed Chair Kevin Warsh has made his commitment clear to bring inflation down,” Long said. “The key will be how much relief happens by September. In encouraging news, jobless claims remain low and the personal savings rate ticked up slightly in May.”
AMERICANS GROW MORE PESSIMISTIC ABOUT FINANCES AS RENT AS FOOD COST FEARS SURGE, FED SAYS
Americans’ household budgets are strained by elevated inflation. (Justin Sullivan/Getty Images)
Ellen Zentner, chief economic strategist for Morgan Stanley Wealth Management, noted that “Sliding oil prices will take a while to work their way through the economy.”
“Today’s data is a reminder that inflation remains well above target and growth remains solid. This will keep the Fed on hold for quite some time, until conditions allow for a cut,” Zentner added.
GET FOX BUSINESS ON THE GO BY CLICKING HERE
Jeffrey Roach, chief economist at LPL Financial Research, said that, “Given the growth trajectory, the Fed is rightly focused on price stability and will remain hawkish this summer.”
“If the Iran crisis creeps into Labor Day timeframe, we have a much higher chance that inflation pressures will seep into other categories and will force the Fed’s hand,” Roach said.
IBM says it has created the world’s first known chip tech below 1 nanometre – but it will be some time before it’s ready for production.
A company that sells meal kits is to close its Lincolnshire warehouse, putting 290 jobs at risk.
Gousto said it would shut its Clay Lake unit, near Spalding, and centralise the production of its food boxes at one site in Cheshire to reduce costs.
The firm said it had heavily invested in its Warrington facility, where about 600 people work.
It also said running two warehouses was no longer efficient and was leading to duplication.
Founder and chief executive Timo Boldt said the closure was “an incredibly difficult proposal given the impact on our colleagues in Clay Lake, who have contributed enormously to Gousto’s journey over a number of years”.
“In a highly competitive food market, it is however essential that we operate as efficiently as possible so that we can continue to invest in our proposition and keep prices as low as possible for customers,” he said.
“Our focus now is on supporting people through this process with care, respect and practical help.”
The BBC has contacted the company for a response.
Listen to highlights from Lincolnshire on BBC Sounds, and watch the latest episode of Look North.
Former Council of Economic Advisors acting chair Tomas Philipson discusses the price of crude oil and the Middle East conflict on ‘The Bottom Line.’
This is a developing story about the final reading of U.S. first-quarter GDP. Please check back for updates.
The U.S. economy grew at a faster pace than expected in the first quarter, according to the Commerce Department’s estimate.
The Bureau of Economic Analysis (BEA) on Thursday released its final reading of first-quarter GDP, which showed the economy grew at an annualized rate of 2.1% in the three-month period including January, February and March.
The Commerce Department released its final estimate of first-quarter GDP on Thursday. (Brandon Bell/Getty Images)
That figure was higher than the expectations of economists polled by LSEG, who had estimated 1.6% GDP growth in the first quarter. The figure was initially estimated at 2% before it was lowered to 1.6% in the BEA’s first revision.
I am an individual investor who is now fully focused on managing my own capital. My investing background focuses on value investing with an emphasis and interest in small to mid-cap stocks. I believe history often repeats itself, and investors can gain valuable insights into the future of companies by examining their historical performance and industry peers. By understanding the history of how they got here, meaningful insights can be inferred about where the companies are going in the future. The reason to write on SeekingAlpha is to use this platform as a tracker for my investing ideas, research, performance, and also to connect with like-minded investors who have similar investing interests. I believe clarity of thought can not be obtained without clarity in writing. Putting ideas down on paper helps me refine my thinking and thesis. I tend to write a lot as I look at multiple companies a day and use writing as a tool to track and evaluate my ideas. By writing down all of my ideas it will help me to become a better investor. Although my focus is on small to mid-cap companies, I have an interest in analyzing technology, mining and the retail industry. One area I tend to avoid is biotech, as the industry is highly specialized with technical knowledge requirements and almost impossible for generalists to gain an edge. I hold a degree in accounting, and it has been particularly useful when analyzing companies that are under financial distress (commonly amongst small to mid-cap companies). Evaluating the company’s solvency and ability to continue operations is one of the necessary checks.
Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
Seeking Alpha’s Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.
What is MiCA? Europe’s crypto regulation explained
World Cup 2026: Colombia battle past DR Congo to reach round of 32
Marco Rubio Personally Authorized Detention Of An Immigrant Who Criticized A Politician Trump Likes
-
Fashion6 days agoWeekend Open Thread: Miami – Corporette.com
-
Entertainment5 days agoRenter of Home in Anne Heche Crash Denies Settlement With Son
-
Sports2 days agoTwo goals and an assist by sheer aura: Cristiano Ronaldo just entered the World Cup chat
-
Tech3 days agoMicrosoft accidentally kills epic Outlook email threads
-
Business5 days agoSoccer-U.S. defends Iran World Cup travel restrictions, says discussions ongoing
-
Politics5 days agoAndy Burnham and the meaning of Makerfield
-
Crypto World1 day ago
Bitcoin (BTC) Dips Below $62K, Ethereum (ETH) Plunges 6% Daily: Market Watch
-
Politics7 days agoBBC Reporter Discusses Cross Party Criticism Of Trumps Iran Deal
-
Crypto World1 day agoSecuritize Wraps Roubini's SEC-Registered ETF as Dubai VARA Digital Security
-
Business2 days ago
Entergy settles forward sale agreements, raises $672 million in cash proceeds
-
NewsBeat6 days agoKeir Starmer Allies Question His Chances For No 10
-
Business5 days agoWall Street Week Ahead: Investors see Micron earnings as pulse check of AI rally momentum
-
Tech7 days agoAWS enters the context layer race with a graph that learns from agents, not manual curation
-
Crypto World5 days agoCan Charles Hoskinson Really Rescue Cardano?
-
Crypto World5 days agoHIVE shares jump as $220M AI deal speeds Bitcoin mining pivot
-
Crypto World5 days agoJake Chervinsky accuses CME of protecting derivatives monopoly
-
Entertainment5 days agoJose Alvarado Wants Taylor Swift at More Knicks Games
-
Tech4 days agoSignal’s Meredith Whittaker says AI chatbots ‘are not your friends’ and calls Copilot agents a backdoor
-
Tech3 days agoNearly 7,000 fake Amazon domains registered ahead of Prime Day 2026, researchers warn
-
Sports1 hour agoIndia vs Bangladesh LIVE Score, Women’s T20 World Cup: Bangladesh Opt To Bat; India Enter ‘Do-Or-Die’ Stage As Semi-Final Race Heats Up
You must be logged in to post a comment Login