Trump’s “Big Beautiful Bill” rewrites the U.S. tax code with massive cuts for top earners and targeted perks for workers—while quietly shifting the long-term cost to ordinary households.
At a Glance
- Trump-era tax cuts made permanent for individuals and businesses.
- Deductions added for overtime, tips, and car loan interest.
- Child tax credit increased temporarily, then drops in 2028.
- Wealthiest 20% receive over 70% of total savings.
- National debt projected to rise by over $2.5 trillion.
The Cuts: What You Keep and What You Lose
The “One Big Beautiful Bill” permanently locks in the Trump-era tax rates, extending lower income brackets and slashing corporate taxes indefinitely. New individual perks include deductions for tipped wages, overtime pay, and auto loan interest—designed to appeal to gig workers and service employees. But according to the Washington Post, the lion’s share of relief flows elsewhere: the top 20% of earners will claim more than 70% of the total tax benefits.
Watch a report: Trump’s ‘Big Beautiful Bill’ Explained
The child tax credit increases to $2,500 per child through 2028—then falls to $2,200. Analysts warn this sunset provision means families will face an effective tax hike unless Congress renews the benefit. At the same time, the bill offers no new childcare support, and education deductions remain capped.
Who Pays?
While household taxes may fall short-term, the national deficit is expected to balloon by $2.4–3.3 trillion, according to USA Facts. These fiscal costs are likely to return in the form of higher borrowing rates, reduced public services, or future tax increases. A Washington Post analysis notes the plan “front-loads” benefits while deferring pain—echoing supply-side strategies from the Reagan era.
At the same time, rural hospitals and food aid programs are slashed to offset the tax cuts, further redistributing the economic burden downward. For average taxpayers, this tradeoff means modest savings now—at the expense of health coverage, infrastructure, and long-term security.
What Comes Next
Trump is expected to sign the bill immediately. New IRS guidance will be issued in late summer, with most provisions taking effect for the 2026 filing year. But polling shows that fewer than half of Americans are aware of these changes—setting the stage for backlash when tax season reveals who really pays.
