Your Money: 5 ways the new tax bill could impact your wallet

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Bruce Helmer and Peg Webb

President Donald Trump’s “One Big Beautiful Bill” Act (OBBBA) is a sweeping package that cements much of the 2017 Tax Cuts and Jobs Act (TCJA) into law. But it also adds new deductions, targeted incentives and temporary perks for specific groups. For investors, retirees and business owners, the legislation offers both opportunities and challenges. Here are the five most important takeaways.

Lock in low tax rates for the long haul

The OBBBA keeps the marginal rates at 10%, 12%, 22%, 24%, 32%, 35% and 37%, all indexed for inflation. Before this law, those rates were set to expire at the end of 2025, reverting to pre-TCJA levels.

For investors, this stability can be a green light for long-term strategies like Roth IRA conversions, capital gains harvesting and structured charitable giving. While “permanent” in Washington is never truly permanent, the current brackets give taxpayers a clearer runway for planning.

If you anticipate higher rates in the future, act now to lock in today’s historically low brackets through strategic income recognition.

Use the bigger SALT deduction while it lasts

The cap on state and local tax (SALT) deductions jumps from $10,000 to $40,000 in 2025, increasing by 1% annually through 2029. After that, the cap snaps back to $10,000 in 2030.

For high-tax states like Minnesota, this temporary expansion is a meaningful break, especially for households with large property tax bills or significant state income tax obligations. But the benefit phases out for joint filers above $500,000 in modified adjusted gross income (MAGI) and singles above $250,000, reducing the deduction by 30% of income above those thresholds.

Consider bunching deductions or using a pass-through entity tax (PTE) election to maximize the value during the five-year window.

Take advantage of permanent relief for pass-throughs

The OBBBA makes the 20% Qualified Business Income (QBI) deduction permanent and adds a $400 minimum floor. For many small-business owners, professional practices and independent contractors, this locks in a major tax break that had been set to expire.

The bill also expands Opportunity Zone rules to encourage rural investment, potentially opening new avenues for tax-advantaged capital deployment.

Review your entity structure, compensation method and income timing to fully capture the deduction — and explore whether rural Opportunity Zone projects could enhance your portfolio’s after-tax return.

Tap into targeted breaks for seniors and newborns

Several niche but noteworthy benefits are included in the new law:

— For seniors (age 65-plus), there’s an extra $6,000 federal deduction per person from 2025 through 2028, even if you itemize. The benefit phases out above $75,000 MAGI for singles and $150,000 for joint filers. While it doesn’t eliminate Social Security taxation, it can meaningfully reduce it for many retirees.

— Workers can claim up to a $25,000 deduction for tip and overtime income, and up to $10,000 for interest on auto loans for new U.S.-assembled vehicles, through 2028.

— “Trump Accounts” provide a $1,000 government-funded investment account for each baby born between 2025 and 2028, starting in 2026. Families can add up to $5,000 annually, and employers up to $2,500 (both indexed for inflation from 2027). Earnings grow tax-deferred, but withdrawals before age 59½ may incur taxes and a 10% penalty.

You need to carefully coordinate these deductions with your broader tax strategy, especially required minimum distributions (RMDs), trust distributions and Roth conversions. For parents, compare the Trump Accounts against 529 plans or custodial accounts to determine which offers greater flexibility and control for your situation.

Keep an eye on potential fiscal storm clouds

The Congressional Budget Office estimates the OBBBA will add $2.4 trillion to the federal deficit over the next decade — before factoring in potential economic effects. That raises several risks:

— Higher future taxes: Policymakers may eventually turn to capital gains, estate taxes or new wealth taxes to shore up revenue.

— Rising interest rates: Increased Treasury borrowing could lift yields, which can reduce bond prices and raise borrowing costs.

— Inflation pressure: More deficit spending could erode the purchasing power of cash and fixed income.

— Entitlement reform: Large deficits may prompt changes to Medicare or Social Security.

— Market instability: A loss of fiscal confidence could shake investor sentiment and credit ratings.

In all market environments, we recommend building flexibility into retirement and investment plans, diversifying across asset classes, maintaining adequate liquidity and keeping an eye on policy developments.

Change can mean opportunity, but risks persist

The OBBBA offers a mix of certainty and urgency: certainty in the form of locked-in tax brackets and permanent business deductions, and urgency in the form of time-limited SALT relief, senior benefits and newborn accounts. For those willing to act now, the opportunities are real — but so are the risks on the horizon. Smart investors and retirees should work with a qualified adviser to model different scenarios, optimize tax timing, and keep plans adaptable in the face of shifting economic and political winds. In Washington, after all, “permanent” is rarely forever.

Prior to investing in a 529 Plan, investors should consider whether the investor’s or designated beneficiary’s home state offers any state tax or other state benefits such as financial aid, scholarship funds, and protection from creditors that are only available for investments in such state’s qualified tuition program. Withdrawals used for qualified expenses are federally tax free. Tax treatment at the state level may vary. Please consult with your tax adviser before investing. Investing involves risk, including possible loss of principal.

The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual.

Bruce Helmer and Peg Webb are financial advisers at Wealth Enhancement Group and co-hosts of “Your Money” on WCCO 830 AM on Sunday mornings. Email Bruce and Peg at yourmoney@wealthenhancement.com. Advisory services offered through Wealth Enhancement Advisory Services LLC, a registered investment adviser and affiliate of Wealth Enhancement Group.

St. Paul offers to put cops outside every school for week after Minneapolis school shooting

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St. Paul police are offering to place officers outside every public and private school in the city in the coming week in response to the shooting of students at Annunciation Catholic School in Minneapolis.

With St. Paul and Minneapolis public school students returning to school after Labor Day, both cities are pledging an increased law enforcement presence.

“This tragedy has shaken students, families, educators and our entire community to its core,” St. Paul Deputy Chief of Operations Kurt Hallstrom wrote in a Friday letter to school leaders. “In response, the department has felt called to offer police presence … to help bolster a sense of safety and security.”

A show of strength from law enforcement is a common reaction after a tragedy like Wednesday’s, said Mo Canady, executive director of the National Association of School Resource Officers. Law enforcement and everyone involved in school safety should be on the lookout for a potential copycat situation, and the presence of law enforcement can reassure students, faculty and parents, he said.

“It’s hard to think past just today at the moment — how do we get through today?” Canady said. “But from a long-term standpoint, it’s probably going to be unlikely or impossible to continue that level of commitment.”

Families and the community are grieving the loss of two innocent lives — an 8-year-old boy and 10-year-old girl were killed when the school was celebrating Mass on Wednesday morning at Annunciation Catholic Church — and another 18 people were shot and injured.

Now, as the school year gets underway, how are schools in the Twin Cities responding?

Protocols already in place

St. Paul Public Schools Superintendent Stacie Stanley sent a reminder to families Wednesday about safety protocols the district already has in place.

“As a parent and grandparent myself, I know how these tragedies affect everyone who has children in school,” she wrote.

Among the school districts using the “I Love U Guys” Foundation’s Standard Response Protocol are St. Paul’s public schools and Ascension Catholic Academy, which oversees four Catholic schools in Minneapolis and St. Paul.

The foundation was started in 2006 by the parents of Emily Keyes, 16, who was killed in a school shooting in Colorado. She’d sent a text message to her mother that day saying: “I love u guys.”

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The foundation says the standard protocol “allows organizations, first responders, students and parents to share a specific vocabulary for quick and coordinated action.” The terms used are “Secure,” “Lockdown” and “Hold in Place.”

At St. Paul Public Schools, “staff and students are trained on what these protocols mean and what to do when one is in effect,” Stanley wrote.

Every school also has an emergency operations plan that outlines what happens in the event of an emergency, and plans are reviewed and updated on at least an annual basis.

St. Paul schools keep exterior doors locked at all times and buzz visitors in, Stanley wrote.

“Our office’s sole focus right now is getting our schools ready to safely welcome back 33,000-plus students,” said Laurie Olson, St. Paul Public Schools’ director of security and emergency management.

Situation in Minneapolis raises new concerns

Basic security steps are the building blocks for safety, said Jameson Ritter, Ascension Catholic Academy’s director of safety and security. The academy’s locations include St. Peter Claver and St. Pascal Regional in St. Paul.

“If somebody gave me a million dollars tomorrow to improve security across our entire academy, I would put it to good use,” said Ritter, who has a background in the military, law enforcement and corporate security. “But if you don’t have people making sure doors are locked or not propped open, or don’t have proper screening of visitors, it’s going to undo all of that before we even get started.”

At Annunciation Catholic Church, their practice was to lock doors after Mass began and the shooting happened shortly after, said Minneapolis Police Chief Brian O’Hara.

“There’s no question that the fact that doors were locked likely saved additional lives,” he said, though the shooter fired 116 rifle rounds through stained-glass windows.

A law enforcement officer stands outside the Annunciation Church’s school in response to a reported mass shooting, Wednesday, Aug. 27, 2025, in Minneapolis. (AP Photo/Abbie Parr)

Canady, of the school resource officers’ association, said he hasn’t seen a situation “play out quite that way at a school before.”

“On occasion when you think you’ve got this figured out, that you have an M.O. of how this plays out, somebody does it differently,” he said.

Connie Hune, of St. Paul, said she’s always worried about her children’s safety, though she feels like their schools have good safety measures.

“But now, my concern is when they’re out of the building,” said Hune, who has two children attending a private Christian school and an older child at a St. Paul public school.

Behavioral Threat Assessments

Nationally, about one-third of parents of children in K-12 said they were “very or extremely worried about a shooting ever happening at their children’s school,” according to a Pew Research Center survey published in October 2022.

The survey came after the May 2022 shooting of 19 students and two teachers at an elementary school in Uvalde, Texas.

Sixty-three percent of the parents surveyed said improved mental health screening and treatment “would be a very or extremely effective way to prevent school shootings.”

The Minnesota Bureau of Criminal Apprehension started the Behavioral Threat Assessment and Management Team in 2023. Some counties in Minnesota have them, along with school districts and corporations.

As a Cottage Grove police sergeant, Randy McAlister co-founded with a forensic psychologist the first Behavioral Threat Assessment Team in the state in Washington County in 2015; he’s since retired as a captain from the department.

“I don’t think we’re where we need to be in Minnesota with school threat assessment,” said McAlister, who owns McAlister Threat Management. “I think a lot of school districts have threat assessment programs, maybe on paper and in name only, but they’re not operating a best practices type program that we know works around the country.”

The 23-year-old shooter in Minneapolis, who died by suicide at the scene, previously attended the school. Acting U.S. Attorney for Minnesota Joe Thompson said videos and writings left behind show that the shooter “expressed hate towards almost every group imaginable.”

On a YouTube channel, videos that police say may have been posted by the shooter show weapons and ammunition, and list the names of mass shooters. What appears to be a suicide note to family contains a confession of long-held plans to carry out a shooting and talk of being deeply depressed.

The suspect didn’t have a criminal record that prohibited buying firearms, and police have said the weapons were recently and lawfully purchased.

There was “not substantive police contact with this individual that would have raised concern to the level that would lead us to believe this sort of a situation would happen,” said BCA Superintendent Drew Evans.

Evans emphasized that authorities “need the help of the public.”

“If there’s concerning social media behavior by anybody or … concern in their community,” people should contact law enforcement “so that we can adequately address that,” Evans said. “… That did not happen in this case.”

There previously had been three fatal shootings at Minnesota K-12 schools since 2000, according to Hamline University’s Violence Prevention Project Research Center.

St. Paul police: ‘Ease concerns’

Police tape is stretched in front of the playground at Annunciation Church and School in Minneapolis after a mass shooting there Wednesday. (John Autey / Pioneer Press)

In the St. Paul Police Department letter to school leaders, Deputy Chief Hallstrom said the department could have officers present as students arrive in the morning Tuesday through Friday.

“Please note that with more than 100 schools throughout our city, we may not be able to provide officers at your school each of these four days,” he wrote. “… While our primary goal is to help ease concerns within our community, we also hope to help restore the positivity that should surround the start of a new school year.”

The Minneapolis Police Department announced they’ve increased patrols at Annunciation. Minneapolis is also coordinating with the St. Paul Police Department, Hennepin County Sheriff’s Office and other local law enforcement to expand patrols around all schools in Minneapolis over the next couple of weeks, the city said last week.

Gov. Tim Walz said Thursday that he had authorized the deployment of 14 Minnesota State Patrol troopers and six Department of Natural Resources enforcement officers to Minneapolis with a focus on schools and places of worship.

Schools in St. Paul can opt out if they don’t want an officer presence.

“Police officers will be outside as many schools as possible to greet students with a friendly face,” Superintendent Stanley wrote in a Friday letter to families. “This is something SPPD has done for our schools many times during the first week of school.”

After a police officer killed George Floyd in Minneapolis in 2020, the Minneapolis and St. Paul school boards voted to eliminate school resource officers.

St. Paul Public Schools put a different plan in place, and every St. Paul public secondary and pre-K-8 school has at least one school support liaison. Elementary schools and specialized sites are served by mobile liaisons, Stanley said in Wednesday’s message to families.

Ra’Von Hill, 17, said he feels safe at his St. Paul school, but he’d like to see metal detectors added. Hill, who is president of the nonprofit World Youth Connect in St. Paul, said he thinks schools need more mental health specialists and people who can connect with young people.

Hune, a community partner with World Youth Connect, believes metal detectors in schools would be a step too far. “I think that’s putting fear out there,” she said.

Meanwhile, Abdi Ahmed, a 10th-grader at a St. Paul public school who was working at the World Youth Connect booth at the Minnesota State Fair on Friday, said he believes armed security guards outside his school would be a deterrent to potential violence.

New concerns, past trauma

In the lead-up to school, Ritter was already meeting with Ascension Catholic Academy staff for regular safety refresher training when the shootings happened at Annunciation.

“The Catholic school and church community in the Twin Cities is so closely knit, and being out there to answer a lot of ‘what-if questions,’” Ritter said of the role he took. “How would we handle communication? How would we reunify our kiddos with their parents and guardians?”

Like public schools in Minnesota, private schools are also required to have drills for its emergency response programs, Ritter said.

Some challenges for religious schools, though, are funding for security and safety and generally having older facilities, he said.

Nationally, Canady said he’s seen more private schools contracting with off-duty or retired officers to serve over the last few years, but it’s still not as common as their presence at public schools.

After a school shooting, it’s natural for people to ask, “What about my community, what about my schools? Do we have a vulnerability?” said Safe and Sound Schools co-founder and executive director Michele Gay, whose daughter was killed at Sandy Hook Elementary in Newtown, Conn., in 2012.

Their recommendation is for everyone to get involved in the work: “To better protect your most precious people, do it together,” she said.

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Faith Lofton, a mother of three and program administrator of St. Paul’s Office of Neighborhood Safety, said the measures the shooter took to carry out violence in Minneapolis show it’s “not just about the lockdowns and the drills that a school can do.”

“Schools can only do so much to keep our babies safe,” she said. It’s going to take work from lawmakers and community advocacy for investments in public safety that go beyond traditional public safety, she said.

Beyond the trauma that school shootings inflict, they can also bring up past traumas, Gay said.

A younger brother of a childhood friend of DeJiohn Brooks, CEO and co-founder of World Youth Connect, was fatally stabbed at Harding High School in St. Paul in 2023.

“It’s not one of those things that people are over yet,” Brooks said of the homicide of 15-year-old Devin Scott. “With something like what happened in Minneapolis, people go back through all of the loss, all of the shootings that have happened around them.”

This report includes information from the Associated Press.

African media grills FIFA’s Infantino about fans being safe, welcome in the US at 2026 World Cup

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By GRAHAM DUNBAR

African media quizzed FIFA president Gianni Infantino on Saturday if people from the continent will be safe and welcome in the United States at the 2026 World Cup.

Soccer fans from Africa “are a little bit jittery” about current events in the U.S., Infantino was told at a news conference in Kenya which urged him to ensure African visitors to the tournament do not feel “outcast … second-class citizens.”

The FIFA leader was reminded he met yet again last week with U.S. President Donald Trump, who now has a gold World Cup trophy sitting in a glass case on his desk in the White House.

“We are going to play it in a country where some of us do not feel welcome,” said a reporter from South Africa, the home country of FIFA vice president Patrice Motsepe who sat beside Infantino at a luxury hotel in Nairobi.

Motsepe is the brother-in-law of South Africa President Cyril Ramaphosa, who had a tense visit to the White House in May when Trump repeated his administration’s baseless claims of white farmers being systematic killed in the country.

African teams at the World Cup

At least nine African nations will be in the 48-team lineup of the World Cup being played June 11 to July 19 in 11 U.S. cities plus three in Mexico and two in Canada. Egypt, Morocco and South Africa are likely to qualify in October as current leaders of qualifying groups.

A 10th African team could advance in inter-continental playoffs scheduled after the tournament draw, which Trump and Infantino announced in the Oval Office last week will be held in Washington D.C. at the Kennedy Center on Dec. 5.

“Everyone will be welcome in North America next year for the World Cup,” said Infantino, whose long-standing ties to Trump got him a seat in the Capitol Rotunda for the president’s inauguration in January.

“I think it’s important to clarify this, there is a lot of misconception out there,” the FIFA leader told a roomful of African media.

Tickets and visas

Tickets for the 104 World Cup games go on sale Sept. 10 amid long-standing concerns about fans getting visas to enter the U.S. which has travel bans and watch lists for dozens of countries. Iran already qualified and will play at least three games at the World Cup.

“I think the onus is on you,” the South African reporter told Infantino and Motsepe, “to make sure that Africa and all the other people of the world do not feel outcast, do not feel like they are being made second-class citizens in a world where equality should prevail.” The reporter’s identity was not immediately clear — the news conference was carried on the Confederation of African Football’s YouTube channel — but he said he’s from South Africa.

Infantino was told earlier by a reporter: “African football fans are a little bit jittery about what is happening in the U.S. in regards to the expansion of people who are in the U.S.”

Motsepe, a billionaire businessman who has led Africa’s soccer body since 2021, insisted discreet work with U.S. authorities had secured commitments to make the World Cup run smoothly.

“We are confident that we will fulfill whatever requirements they may have and there will be sufficient access to African fans in the World Cup next year,” Motsepe said.

Announcing travel bans in June, the Trump administration promised exemptions for teams and officials coming to the soccer tournament — and the 2028 Los Angeles Olympics — though the prospects for fans are less clear.

Infantino claimed fans came from 164 countries to the month-long Club World Cup hosted in 11 U.S. cities in June and July “without of course any problems” with visas.

“The world needs occasions of unity,” said Infantino, who was told by Trump in the White House last week FIFA would not be able to organize World Cup games in L.A. next year had the president not sent troops into the city recently. Eight games are scheduled at SoFi Stadium in Inglewood, including the U.S. team’s opener June 12.

“Be positive,” Infantino said in Kenya, “you will see there will be a great, great celebration of the greatest FIFA World Cup ever.”

Man convicted of shooting 5 officers during 2023 standoff in Benton County

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A Princeton, Minn., man who shot five police officers in a standoff in 2023 was found guilty Thursday in Benton County District Court.

Karl Thomas Holmberg, 66, was found guilty of seven counts of attempted first-degree murder, seven counts of first-degree assault, and second-degree possession of a controlled substance.

Holmberg’s nine-day jury trial began Aug. 18.

The incident occurred on Oct. 12, 2023, at Holmberg’s residence in Glendorado Township near Princeton.

Karl Thomas Holmberg. (Courtesy of the Benton County Sheriff’s Office)

Officers with the Sherburne County Drug Task Force and Benton County Sheriff’s Office attempted to execute a knock-and-announce narcotics search warrant at the home, according to the criminal complaint.

Officers knocked several times, announced “police, search warrant” and entered the home when Holmberg began shooting.

Five officers were shot in the incident, with all surviving their injuries.

Holmberg, who was shot in the foot during the incident, was eventually taken into custody after several hours of negotiation.

His wife, Dorine Holmberg, told law enforcement that she awoke to her husband telling her that “they” were here, and that “it was his day to die,” according to the complaint. She also told officers that Holmberg began shooting “blindly” through a closed bedroom door with a military-style rifle.

At an interview at North Memorial Medical Center in Robbinsdale, Holmberg told officers he was in his bedroom and knew police officers were at his door, according to the complaint. Holmberg also said he didn’t think they had a right to be there and told them to leave.

Officers searched the residence two days after the incident and found nearly 14 grams of methamphetamine, according to the complaint. Officers also reported finding smoking devices, digital scales, baggies, needles and other paraphernalia.

Holmberg had convictions on felony drug charges in 1986 and 2005, according to court records.

Sentencing will be 10 a.m. Oct. 31 in Foley.

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