Overview

• The House passed a comprehensive tax bill with major economic implications, including Trump-era tax cut extensions, elimination of taxes on tips and Social Security benefits, and a new "Trump account" for newborns, though it would increase budget deficits by an estimated $2.7 trillion over 10 years.

• The U.S. Treasury will stop circulating new pennies by early 2025, saving $56 million annually by eliminating a coin that costs nearly 4 cents to produce, with cash transactions to be rounded to the nearest 5 cents while pennies remain legal tender.

• Bitcoin reached an all-time high of over $111,000, driven by investors seeking riskier assets, pro-crypto political developments, and increased institutional investment, while Trump hosted a controversial private gala for crypto investors with admission prices up to $37.7 million.

• Nike is implementing price increases on sneakers starting June 1st while returning to Amazon after a 5-year absence, as the company struggles with significant sales challenges including a 9% overall drop and a 25% e-commerce decline in Europe, Middle East, and Africa.

• The administration blocked Harvard from enrolling international students citing an "unsafe campus environment," potentially affecting 10,000 international academic personnel who typically pay $87,000 in total costs, amid broader financial pressures on the university.

Content

House Tax Bill and Economic Implications

* Republicans passed a comprehensive tax and spending bill with major economic implications * Key provisions include: - Extension of Trump-era tax cuts - Bigger child tax credit - Higher standard deduction - Elimination of taxes on tips, overtime pay, and Social Security benefits - Increased spending on border security and national defense - Decreased spending on Medicare, food aid, and clean energy tax credits - Expansion of SALT tax deduction from $10,000 to $40,000 for incomes up to $500,000 (disproportionately benefiting higher-income earners in high-tax states) - Clean energy credits set to be eliminated by 2028, causing significant market impact (e.g., Sunrun stock fell 37%)

* Financial impact: - More than 80% of households would receive a tax cut in 2026 - Average household tax cut estimated at $2,900 - 60% of tax cuts would benefit top 20% of households - Households making over $460,000 receive over one-third of tax cuts

* Unique provisions: - Temporary $500 increase in child tax credit - New "Trump account" for newborns: * $1,000 one-time federal government deposit * Parents can contribute * Invested in broad U.S. stock index

* Fiscal concerns: - Independent analysts estimate $2.7 trillion increase in budget deficits over 10 years - 20-year and 30-year bond yields exceeded 5%, indicating rising borrowing costs - Mortgage rates now over 7% - Moody's recent credit rating cut raises concerns about U.S. fiscal situation - Current annual interest payments are $1.1 trillion

* Legislative status: - Bill passed House, must still pass Senate - No Democratic support - Not yet law

Penny Currency Changes

* U.S. Treasury will stop circulating new pennies by early next year * Each penny costs nearly 4 cents to produce, causing $85 million loss last year * The Mint expects to save $56 million annually * Cash transactions will be rounded to nearest 5 cents * Non-cash transactions will remain in exact increments * Pennies will remain legal tender * Follows Canada's 2013 model of eliminating physical penny

Movie Box Office Discussion

* Two movies competing this Memorial Day weekend: - Mission Impossible: The Final Reckoning (projected to gross around $80 million) - Live-Action Lilo and Stitch (projected to gross $165 million domestically)

* Lilo and Stitch franchise details: - Merchandise sales grew from $200 million to $2.6 billion in five years - Strong fan base, particularly among women who grew up with the original film - Disney aggressively marketing merchandise to avoid supply issues - Gained significant popularity on Disney+

* Additional context: - Tom Cruise performs death-defying stunts in Mission Impossible - Memorial Day box office record from 2013 is potential target ($250+ million)

Bitcoin and Cryptocurrency

* Bitcoin reached an all-time high of over $111,000 per token, a 45% increase from its 2025 low * Factors contributing to rise include: - Investors moving into riskier assets - Pro-crypto political developments - Increased institutional investment (31% increase in Bitcoin held by public companies) - Even Bitcoin critic Jamie Dimon now defending investors' right to buy Bitcoin

* Trump and Crypto Event: - Hosted a private gala for crypto investors - Admission prices ranged from $55,000 to $37.7 million - Included a competition to dine with Trump based on coin holdings - Protesters criticized the event's potential for buying access to the president

Nike Developments

* Returning to Amazon after a 5-year breakup * Implementing price increases starting June 1st: - $5 more for sneakers under $150 - $10 more for sneakers over $150 * Experiencing significant sales challenges: - 9% overall sales drop - 17% drop in China - 25% e-commerce sales decline in Europe, Middle East, and Africa * New CEO Elliot Hill attempting to reverse revenue slump * Shifting strategy to focus on full-price sneakers and running shoes

Harvard and International Students

* The administration blocked Harvard from enrolling international students * Homeland Security cited an "unsafe campus environment" as justification * Harvard currently has 27% international students (up from 20% in 2011) * Approximately 10,000 international academic personnel would be affected * International students typically pay around $87,000 total costs * This action is part of broader financial pressures on Harvard, including: - Frozen $2.6 billion in funding - Cuts to future grants - Potential loss of tax-exempt status

Other Notable Segments

* Wienermobiles will race in a promotional "Weenie 500" event * Dr. Beach released his annual beach rankings: - Cooper's Beach in Southampton named #1 - Uses a 50-factor evaluation checklist - Beaches from Hawaii, New York, and Florida dominated the list

Podcast Housekeeping

* Special Memorial Day interview episode on Monday * Return to regular format on Tuesday * Production team credits: - Executive Producer: Emily Milliron - Producer: Raymond Liu - Associate Producers: Olivia Graham and Olivia Lake - Audio: Scoop Stardaris - President: Devin Emery - Production Company: Morning Brew * Listeners can send feedback/questions to morningbrewdaily@morningbrew.com