Major Provisions

• Permanent Extension of 2017 Tax Cuts: The bill cements the individual and corporate tax cuts from the 2017 Tax Cuts and Jobs Act (TCJA), making them permanent for most taxpayers[1][2][3].
• Standard Deduction Increase: The standard deduction is further boosted, now reaching $31,500 for families, and remains nearly doubled from pre-2017 levels[4][5].
• No Tax on Tips, Overtime, and Car Loan Interest: Income from tips, overtime pay, and car loan interest is now exempt from federal income tax, providing targeted relief to workers in those categories[4][1][2].
• Child Tax Credit Expansion: The child tax credit is increased to $2,200 and made available to more families, with expanded eligibility and permanence[4].
• SALT Deduction Cap Raised: The cap on state and local tax (SALT) deductions is raised from $10,000 to $40,000 for those earning less than $500,000, with the threshold rising 1% annually[6][3].
• Estate Tax Exemption: The estate tax exemption is nearly doubled, now shielding inheritances up to $14–15 million[3].
• New Tax-Advantaged Accounts: Introduction of "Trump savings accounts" for children and expanded 529 education savings accounts[4][2].
• Healthcare and Social Program Cuts: The bill includes significant cuts to Medicaid and the Supplemental Nutrition Assistance Program (SNAP), and adds work requirements for Medicaid[1][7][3].
• Other Provisions: Expands health savings accounts, enhances adoption and dependent care credits, and makes paid leave tax credits permanent[4].

Broader Economic and Fiscal Implications

• Deficit Impact: The bill is projected to increase the federal deficit by $3.3–$4.9 trillion over the next decade, which could lead to higher interest rates on mortgages and loans in the future[12][1].
• Distributional Effects: The majority of tax relief flows to households earning above $217,000, with the top 20% receiving the largest benefits. Lower-income households see much smaller gains or even losses due to cuts in social programs[13][3][14].
• State-by-State Effects: High earners in states with high income and property taxes (like New York) benefit most from the raised SALT cap[6][3].

Summary

The bill’s benefits are concentrated among higher earners, while it is funded in part by cuts to social safety net programs. The overall fiscal impact is a substantial increase in the federal deficit, with possible long-term effects on interest rates and government services[12][1][3].

Sources [1] 4 Ways Trump's 'Big Beautiful Bill' Could Impact Your Wallet https://www.businessinsider.com/how-trump-big-beautiful-bill-impacts-wallet-taxes-2025-7 [2] Tax changes under Trump’s 'big beautiful' bill — in one chart https://www.cnbc.com/2025/07/03/trump-big-beautiful-bill-tax-changes.html [3] Big Beautiful Bill tax changes by income bracket: Who wins and who ... https://www.marca.com/en/lifestyle/us-news/personal-finance/2025/07/03/686655a9e2704ebb6e8b45c4.html [4] The One, Big, Beautiful Bill – The Largest Tax Cut in American History https://waysandmeans.house.gov/2025/07/03/passed-the-one-big-beautiful-bill-the-largest-tax-cut-in-american-history/ [5] [PDF] The One, Big, Beautiful Bill - House Ways and Means Committee https://waysandmeans.house.gov/wp-content/uploads/2025/05/The-One-Big-Beautiful-Bill-Section-by-Section.pdf [6] Top five tax changes for the wealthy in Trump's 'big beautiful bill' https://www.cnbc.com/2025/07/03/trump-big-beautiful-bill-top-five-tax-changes-for-the-wealthy.html [7] The Devastating Harms of House Republicans' Big, 'Beautiful' Bill by ... https://www.americanprogress.org/article/the-devastating-harms-of-house-republicans-big-beautiful-bill-by-state-and-congressional-district/ [8] How your taxes will change after Trump signs the 'big, beautiful bill ... https://thehill.com/business/personal-finance/5384586-trump-bill-tax-cuts-medicaid-snap/ [9] High-income earners to benefit most from megabill tax breaks https://thehill.com/newsletters/business-economy/5384844-high-income-earners-to-benefit-most-from-megabill-tax-breaks/ [10] “One Big Beautiful Bill Act” House GOP Tax Plan: Details and Analysis https://taxfoundation.org/research/all/federal/big-beautiful-bill-house-gop-tax-plan/ [11] How much will you save or lose with Trump's 'big' tax bill? https://www.washingtonpost.com/business/interactive/2025/trump-big-beautiful-bill-your-taxes-cuts/ [12] One Big Beautiful Bill Act Tax Policies: Details and Analysis https://taxfoundation.org/research/all/federal/big-beautiful-bill-senate-gop-tax-plan/ [13] Trump 'big beautiful' bill helps wealthy, hurts low earners: Yale report https://www.cnbc.com/2025/06/30/trump-bill-helps-wealthy-hurts-low-earners-yale-report.html [14] The Pending Senate Budget Bill Is Even More Regressive Than The Finance Panel’s Version https://taxpolicycenter.org/taxvox/pending-senate-budget-bill-even-more-regressive-finance-panels-version