The One Big Beautiful Bill Act (OBBBA) or the Big Beautiful Bill (P.L. 119-21), is a U.S. federal statute passed by the 119th United States Congress containing tax and spending policies that form the core of President Donald Trump's second-term agenda. The bill was signed into law by Trump on July 4, 2025.
Trump Tax Plan Changes: Standard Deduction
The 2017 Trump tax law (TCJA) nearly doubled the standard deduction for all filers, and OBBB bumped them up. If you're a single filer or if you're married filing separately, your standard deduction for 2025 rose to $15,750 under OBBBA.
The standard deduction increased for 2025 and 2026, and a new temporary “bonus” deduction for adults 65 and older begins in 2025. The child tax credit increased to $2,200 for the 2025 and 2026 tax years; retirement plan contribution limits for IRAs and 401(k)s also increased for 2026.
If the individual tax cuts expire, taxpayers in all income groups would face higher and more complicated taxes. Machinery and equipment expensing is a key provision that, if allowed to expire, would especially harm capital-intensive industries like manufacturing.
This bipartisan bill authorizes the U.S. Army Corps of Engineers to manage water resource projects and policies nationwide. It also authorizes federal funding for various water infrastructure projects, including the expansion of water storage capabilities, and upgrades to wastewater, drinking and irrigation systems.
“The 2021 Infrastructure Investment and Jobs Act apportioned more than $1 trillion to a wide variety of projects deemed "infrastructure," including $550 billion toward "'new' investments and programs." Among its line items, the law included $7.5 billion to build electric vehicle (E.V.) chargers across the country.”
Donald Trump, previously the president of the United States from 2017 to 2021, campaigned in 2024 on the promise of an economic nationalist system characterized by protective tariffs, lower taxation, and reduced regulations, where income tax would be largely or completely replaced by tariffs on other countries to ...
The Trump/GOP tax and spending bill impacts businesses as well. Some key changes include: Permanent 20% small business deduction for pass-through entities such as partnerships and sole proprietorships. Permanent 100% bonus depreciation and full expensing for business investments.
No Tax on Overtime is a provision that was included in a larger tax reform bill that passed in July 2025. It allows certain workers to deduct up to $12,500 in qualified overtime compensation from their taxable income on their federal income tax return. Joint filers can deduct up to $25,000.
The 2025 Federal Tax Debate
Much like the 2017 tax law, the new law favors the richest taxpayers. More than 70 percent of the net tax cuts will go to the richest fifth of Americans in 2026, only 10 percent will go to the middle fifth of Americans, and less than 1 percent will go to the poorest fifth.
The proposed tax policies include eliminating taxes on specific income items such as tips, overtime and Social Security benefits. Additionally, they suggest creating an itemized deduction for auto loan interest and imposing taxes on large private university endowments.
Refunds are likely to be higher in 2026 because of OBBB's tax cuts. Don Schneider, deputy head of U.S. policy at Piper Sandler, estimates that OBBB will deliver $91 billion in retroactive tax relief in 2026, with $60 billion being issued in refunds and $30 billion reducing tax liabilities.
The Trump tax cuts delivered on their promise to help make the U.S. economy stronger and provide more capital investment to help businesses expand and create jobs.
Washington, D.C.--Through policies like a standard deduction boost, tax benefits for child care affordability, and delivering on the President's agenda on no taxes on tips, no taxes on overtime, and tax relief for seniors, Senate Republicans' legislation provides significant relief to low- and middle-income Americans.
Income Tax Act, 2025 to be effective from April 1, 2026. The Act simplifies language, removes obsolete provisions and consolidates and restructures provisions. It Introduces concept of 'Tax Year' replacing 'Assessment Year' and 'Previous Year'.
After the decision, interest continued to accrue. As Donald Trump did not pay the judgment while he appealed the decision, by the end of 2024, the total he owed had increased to over $500 million.
increased Child Tax Credit - increased from $2,000 to $2,200 for qualified taxpayers. additional senior deduction (2025 through 2028) - additional $6,000 deduction for taxpayers 65 and older with phaseout for MAGI over $75,000 (over $150,000 for Married Filing Jointly filers)
Republicans' One Big Beautiful Bill Act expands who is subject to SNAP work requirements. That means that most adults up to age 64 will now have to fill out paperwork showing they are working, volunteering, or participating in a work training program for at least 80 hours a month.
"Read my lips: no new taxes" is a phrase spoken by American presidential candidate George H. W. Bush at the 1988 Republican National Convention in New Orleans as he accepted the nomination on August 18.
The economy is growing at about the same pace as it did in Obama's last years, and unemployment, while lower under Trump, has continued a trend that began in 2011." Nominal wages, consumer and business confidence, and manufacturing job creation (initially) compared favorably, while government debt, trade deficits, and ...
Yes, most economic analyses suggest President Trump's tariffs are hurting the U.S. economy, increasing costs for consumers and businesses, causing layoffs, reducing investment, and creating economic uncertainty, although some sectors see limited gains while facing retaliation, leading to overall negative impacts like higher prices and reduced trade. While the tariffs aim to protect domestic industry, they act as a tax, raising prices and reducing available goods, with studies pointing to job losses in manufacturing and decreased business confidence.
Since World War II, according to many economic metrics including job creation, GDP growth, stock market returns, personal income growth, and corporate profits, the United States economy has performed significantly better on average under the administrations of Democratic presidents than Republican presidents.