Key provisions of the law #OneBigBeautifulBill (the largest tax cut in the U.S. in decades):
For citizens:
- No longer required to pay taxes on tips, overtime, and retirement (until 2028).
- Increased standard deduction – now $15,750 for singles and $31,500 for families.
- The child tax credit has increased to $2,200 per child (only for U.S. citizens).
- All children born from 2025 to 2028 will have a $1,000 account opened for them.
- Increased limit on state and local tax deductions (SALT) to $40,000.
- The estate tax threshold is raised to $15,000,000 (or $30,000,000 for families).
For businesses:
- Decreased income tax for small businesses.
- You can fully deduct expenses for equipment and technology.
- More benefits for manufacturing goods within the U.S.
Less spending on social support:
- Cuts to the Medicaid program (free healthcare for the poor) – must work at least 80 hours a month.
- Reduces funding for food stamps (SNAP) – millions of people may lose them.
- No more forgiveness of student loans.
Security and military:
- Funds for building a wall with Mexico.
- Introduces e-Verify checks nationwide (for hiring employees).
- Hiring an additional 20,000 border security personnel.
- Increases the U.S. military budget.
But all of this comes at the expense of increasing the national debt:
- New benefits will cost the budget $4,500,000,000,000.
- The national debt will increase by $4,000,000,000,000 over 10 years.
Most changes will take effect in 2026.