About the One Big Beautiful Bill Act
Comprehensive tax reform scenarios and impact analysis
Key Provisions
1
Permanent TCJA Extensions
Makes all Tax Cuts and Jobs Act provisions permanent, including the 37% top tax rate and doubled standard deductions.
2
Enhanced Standard Deductions
Increases standard deduction to $15,750 for single filers and $31,500 for joint filers.
3
Child Tax Credit Boost
Raises Child Tax Credit to $2,200 per child, providing significant relief for families.
New Deductions
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No Tax on Tips
Up to $25,000 in tips can be deducted from taxable income for service workers.
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Overtime Deduction
Up to $12,500 in overtime pay can be deducted, encouraging hard work.
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Auto Loan Interest
Up to $10,000 in auto loan interest for U.S.-made vehicles can be deducted.
Senior Tax Relief
👴
Seniors receive a $6,000 bonus deduction under OBBA
This provides additional relief for retirees and helps offset rising costs of living.
Economic Impact
Benefits
- ✓ Lower tax burden for most taxpayers
- ✓ Encourages work and productivity
- ✓ Supports American manufacturing
- ✓ Provides relief for seniors
Concerns
- âš Adds $3-4 trillion to deficit
- âš Cuts to Medicaid and SNAP
- âš May impact low-income households
- âš Long-term fiscal sustainability