Trump's "One Big Beautiful Bill"

Trump’s “One Big Beautiful Bill” Has Passed. Now What?

In 2017, we wrote about the Trump Tax Plan when it was still a twinkle in Paul Ryan’s eye. That bill—the Tax Cuts and Jobs Act—cut rates, doubled the standard deduction, slashed corporate taxes, and capped the SALT (State and Local Tax) deduction, among other things. It also had an expiration date. Most of the individual tax provisions were set to sunset at the end of 2025.

Well, it’s 2025. And Trump’s back. And he just signed what he’s calling the One Big Beautiful Bill (“OBBB”)—an ambitious, sprawling sequel to the 2017 tax law. Think of it as TCJA 2.0: Bigger, Trumpier, and with a few new twists.

Here’s what’s in it, what’s changed, what’s staying, and what might be coming your way next April.

1. The Tax Cuts Are Here to Stay (and Grow a Little)

Trump’s new bill permanently extends the individual tax cuts from 2017. That means the seven tax brackets—ranging from 10% to 37%—aren’t going anywhere. They’ll continue to be indexed for inflation.

The standard deduction increases again:

  • Married Filing Jointly: $31,500
  • Single: $15,750
  • Head of Household: $23,625
  • Bonus for Seniors 65+: $6,000

That’s good news for most taxpayers, especially those who don’t itemize.

2. A Win for Parents—and Babies

The Child Tax Credit increases to $2,200 per child and is now indexed to inflation. Refundable portions remain intact, which means families below the tax line can still benefit.

Also new: if your child is born between 2025 and 2028, the federal government will automatically open a $1,000 tax-deferred “Trump Account” in their name. No guidance yet on how it can be used—but it exists, and it’s federally funded.

3. Tips, Overtime, and Auto Loans

This section is called: Somebody in the White House really wanted waiters to buy Fords.

  • Tips and overtime income is now exempt from federal income tax—up to $25,000/year.
  • Buy a U.S.-assembled vehicle and you can deduct up to $10,000/year in auto loan interest. (Phases out for incomes above $100k single / $200k joint.)

If you’re a tipped worker who commutes in a Ford, this is your year.

4. SALT Cap Loosened (Temporarily)

The SALT deduction cap (for state and local taxes) jumps from $10,000 to $40,000 through 2028—for filers making under $500,000.

This is a temporary reprieve, especially valuable in high-tax states like California, New York, and New Jersey. But the original $10k cap comes back after 2028.

5. Seniors Get a Little Extra Love

In addition to the $6,000 bonus deduction, seniors over 60 can make larger catch-up contributions to retirement plans and benefit from enhanced Social Security COLA indexing.

It’s not game-changing, but it adds up.

6. Cuts Elsewhere: Medicaid, SNAP, and Safety Nets

This is where the bill gets more controversial.

The OBBB cuts over $1 trillion in projected spending from Medicaid, SNAP, and other federal programs over ten years. New work requirements have been added, and some eligibility standards have tightened.

According to CBO estimates, 10–17 million people could lose access to benefits. Supporters call it reform. Critics call it cruelty. Either way, the impact is massive.

7. The Economic Impact: Debt, Growth, and Your Grandkids

This bill isn’t cheap. Here are the numbers:

  • Federal revenue loss: $4 trillion over 10 years
  • Estimated GDP growth: +1.2%
  • Net increase to national debt: About $2.8 trillion (after growth effects)

So yes, you may save money now. But the debt load is likely to grow—and someone down the road will be footing that bill.

8. Section 179 and Bonus Depreciation Supercharged

The One Big Beautiful Bill Act (OBBBA), signed on July 4, 2025, made sweeping changes to accelerate business write-offs and incentivize capital investment.

  • Bonus Depreciation: Permanently restored to 100% for qualified property placed in service after January 19, 2025. This includes tangible property with a recovery period of 20 years or less, qualified improvement property, and eligible manufacturing facilities placed in service before 2031. Prior law had phased this down to 40% for 2025—so this is a major reversal.
  • Section 179 Expensing: The cap increases to $2.5 million, with a phase-out beginning at $4 million. Both thresholds will be indexed for inflation starting in 2026. That’s a sizable jump from the prior $1.22 million cap and $3.05 million phase-out.
  • Qualified Production Property (QPP): OBBBA introduces a new 100% deduction for newly constructed nonresidential real estate used for manufacturing, production, or refining. Property must be placed in service before 2031, with specific construction start-date rules.

If you’re in a capital-heavy industry—like healthcare, logistics, manufacturing, or construction—these updates are a windfall. You can write off massive equipment, buildouts, and even certain real estate investments immediately, without waiting years for depreciation schedules to play out.

So… Will You Save Money?

Probably, if you check at least one of these boxes:

  • You have kids
  • You work for tips or hourly wages
  • You bought an American-made car
  • You’re a senior with retirement savings
  • You live in a high-tax state

High earners benefit too. So do families with dependents. It’s a buffet of tax breaks, but everyone gets served a different portion.

Final Thoughts

The One Big Beautiful Bill is bold, complex, and wide-reaching. Whether you see it as a generous tax overhaul or a risky fiscal gamble, it will affect your return—and possibly your community—for years to come.

As always: check your withholdings, keep your receipts, and hug your accountant. They’re about to earn every penny.

Zachariah Parry