Here’s a quick rundown of what’s inside the “One Big Beautiful Bill Act”  as of May 19, 2025. The indented areas are our perspective. Our major issues are with reducing corporate taxes and tax benefits to wealthy and potential implications of eliminating of taxes on tips (needs more definition- must have base wage, and the definition of tips needs to be clear)

  • Permanent extension of the individual income tax cuts in the 2017 Tax Cuts and Jobs Act, with some adjustments.
    • This reduces the corporate tax rate from 35% to 21%, increases the standard deduction and increases exclusion amounts for estate taxes.
    • Limits deductions for property taxes and state and local taxes
    • Limits mortgage interest deduction
    • Doubles estate and gift  tax exemption
    • Increase the child tax credit
    • Extending the 2017 tax cuts will decrease federal tax revenue by $4Trillion from 2025 through 2034
    • Benefit goes to wealthy- 49% goes to top 5%
  • Temporary elimination of taxes on qualified tips, overtime pay and car loan interest payments.
    • Employers could lower wages and employees would have to rely even more on tips (and in a recession, probably less)
    • Businesses could reclassify income as tips to avoid paying taxes (bonuses could become “tips”)
    • Excluding tips from payroll taxes would reduce their Social Security Benefits
    • While sounding good- those earning less than $25 per hour, which is less than half of the work force- only 5.1% are in tipped occupations and  37% don’t pay federal income tax due to standard deduction.
  • An additional $4,000 deduction for senior Americans in lieu of no taxes on Social Security (there are procedural reasons why Republicans can’t do no taxes on Social Security, namely the Byrd Rule).
  • SALT cap increase.
  • Hikes debt ceiling by $4 trillion (The debt limit is forecasted to become a problem sometime after July or August if Congress fails to act).
  • $175 billion for border security, including $46.5 billion for the construction of a wall along the US-Mexico border specifically.
  • $150 billion in additional funding for defense, including $25 billion for Trump’s space-based Golden Dome missile defense system, $34 billion to expand the Navy’s capacity and shipbuilding, $21 billion to replenish America’s ammunition stockpile and $5 billion for border security.
  • A mandated 80-hour-per-month work requirement on able-bodied adults ages 19 – 64 enrolled in Medicaid. Volunteer work and school would count toward the requirement.
  • States that provide Affordable Care Act expansion of Medicaid coverage for illegal immigrants will see their reimbursement rates drop.
  • States with error rates on SNAP benefits would be required to pay a percentage of the program (historically, the feds paid for all of it).
  • Set up a fast-track system for permitting natural gas if applicants pay either 1% of a project’s costs or $10 million, whichever amount is less.
  • Ends the Biden-era electric vehicle mandate for two-thirds of new car sales to be EVS by 2032.
  • Able-bodied adults without children would also see work requirements for SNAP, which currently last until the age of 54, jump to the age of 64.
  • New “Money Accounts for Growth and Advancement” MAGA savings accounts for parents and guardians where the feds will pay $1,000 for children born between Jan. 1, 2024, and Dec. 31, 2028.
  • Restrictions on large abortion providers such as Planned Parenthood from getting Medicaid funding.
    • 3% are abortion, all their other services include cancer screening (9%), STI treatment (42%), contraception- 34%, other services -11%
    • 34% of Planned Parenthood comes from government grants, contracts and Medicaid reimbursements.
  • Restrictions on Medicaid funding for transgender surgeries.
  • Eliminate the $200 tax on gun silencers.
    • Seriously???
  • Tax of up to 21% on certain university endowments.
    • Currently is it 1.4%
    • Could lead to increased tuition
    • Endowments are crucial for academic research, student aid
    • This mainly affects Ivy League Schools- Trump punishing Harvard…
  • Consolidate student loan payments into two options: 1.) standard program, encompassing monthly payments over a 10 to 25 year period 2.) “repayment assistance” program that is more lenient.
    • The real issue is the cost of college education
  • Roll back key provisions of the Inflation Reduction Act.
    • Climate Change- Transform energy systems to minimize carbon emissions and enhance adoption of green energy- This act would roll they back
  • Air Traffic Control modernization