“One Big Beautiful Bill” - RECAP
There has been a lot of debate over the president’s “One Big Beautiful Bill,” but yesterday, it officially passed the house and it is set to be signed into law today by the president. If you haven’t been paying attention, here is a brief overview of what the new law will contain and how it may inpact you.
Tax Policy Changes
The bill includes over $4.5 trillion in tax cuts over 10 years, primarily benefiting individuals and small businesses:
Middle- and working-class tax cuts:
Extends and expands the 2017 Trump tax cuts (TCJA) for individuals.
Increases the standard deduction and child tax credit.
Eliminates taxes on tips and overtime pay through 2028.
Introduces “Trump Accounts”—tax-deferred savings accounts for children, funded through 2028.
Raises the SALT deduction cap to $40,000 for households earning under $500,000.
Expands deductions for seniors and charitable giving.
Business tax provisions:
Revives bonus depreciation and R&D expensing through 2029.
Extends Opportunity Zones and lowers international tax rates.
Allows full expensing of factory construction through 2028.
🏥 Healthcare & Social Spending
The bill makes significant changes to federal healthcare and welfare programs:
Medicaid: Introduces work requirements and reduces federal matching rates, shifting more costs to states.
Food stamps (SNAP): States assume a larger share of funding.
Medicare: No direct cuts, but some administrative savings are included.
Rural healthcare: Establishes a $50 billion fund to support rural hospitals and clinics.
🌐 Immigration & Border Security
A major focus of the bill is immigration enforcement:
$150 billion allocated for border security, including:
Expansion of physical barriers and surveillance.
Increased hiring of border agents.
ICE funding increases from $10 billion to over $100 billion by 2029, making it the most heavily funded federal law enforcement agency
🌿 Energy & Environmental Policy
The bill rolls back many clean energy incentives:
Repeals electric vehicle (EV) tax credits.
Phases out clean energy production, investment, and manufacturing credits from the Inflation Reduction Act.
Introduces a 1% tax on remittances sent abroad.
Adds a “foreign corporate retaliation tax” to counter foreign subsidies.
📉 Fiscal Impact
According to the CRFB:
Adds $2.4 trillion to primary deficits over 10 years.
Total debt increase: $3.0 trillion including interest.
If temporary provisions are extended without offsets, the debt impact could reach $5.0 trillion
There are a number of opinions on this bill and it narrowly passed both the senate and the house along party lines. There are strong criticisms, especially around medicaid and the total fiscal impact. If you want to learn more about how this new law might impact you and your family, please schedule a time to meet with us.