House Republicans voted to pass President Donald Trump’s One Big Beautiful Bill Act on Thursday. The bill was sent to Trump’s desk to sign on Friday, July 4.
President Trump’s “big, beautiful bill” means fewer taxes for lower income Americans and a $6,000 deduction for seniors 65 and older.
No taxes on Social Security or tips up to $25,000
Trump kept his promise of no taxes on Social Security up to $25,000.
The bill makes Trump’s 2017 tax breaks permanent, and added no taxes on tips up to $25,000.
Seniors will benefit from a $6,000 “senior deduction” that will allow more people over 65 to avoid Social Security taxes, according to The Hill.
Most households (over 80%) will get tax cuts in 2026 that expire in 2028. Households with annual incomes of about $217,000 or more will get a tax cut of $12,000.
Households earning between $217,000 and $318,000 would see their after-tax income increase $5,400. Households making between $100,000 and $200,000 a year would get a tax break of $3,000.
Americans making between $75,000 and $100,000 would get a tax break of about $1,700, while middle income earners (making $50,000 to $75,000) will see a $1,000 tax break.
Americans making between $40,000 and $50,000 will see about $630 more in their paychecks.
Many of the bill’s tax deductions will begin in 2026. That includes a permanent increase in the child tax credit to $2,200 and an increase in the standard deduction by $750.
Trump reacted angrily to House Democrats who voted no on the BBB bill. “I hate them,” Trump said at a patriotic event on Thursday.
“All of the things we did with the tax cuts and rebuilding our military – not one Democrat voted for us,” Trump said at a “Salute to America” event in Des Moines, Iowa on Thursday.
“But all of the things that we’ve given, and they wouldn’t vote. Only because they hate Trump. But I hate them, too. You know that? I really do, I hate them. I cannot stand them because I really believe they hate our country, you want to know the truth.”
