re: House passes Trump’s ‘big, beautiful bill’ in marathon overnight session

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Here is 10 ways the “Big Beautiful Bill” helps middle class America:

1. Permanently Extends Lower Income Tax Rates

•Benefit: The 2017 Tax Cuts and Jobs Act’s reduced income tax brackets were set to expire in 2025. This bill makes them permanent, keeping more take-home pay in workers’ pockets.

2. Expands the Standard Deduction

•Benefit: The standard deduction—already doubled under TCJA—is extended and temporarily boosted by $1,500 for singles and $1,000 for heads of household, reducing taxable income and simplifying filing for millions.

3. Increases the Child Tax Credit

•Benefit: The bill raises the child tax credit to $2,500 per child through 2028, easing the cost of raising children. It also adjusts for inflation after that period.

4. Makes Overtime Pay Tax-Free

•Benefit: Workers who earn overtime can deduct that income from their taxable earnings, recognizing and rewarding hard work—especially for blue-collar and hourly workers.

5. Makes Tipped Income Tax-Free (Under Certain Conditions)

•Benefit: Service workers in customary tipping occupations can deduct their tips from taxable income. This helps waiters, bartenders, hairdressers, and other gig/hospitality workers keep more of what they earn.

6. Expands the Saver’s Credit for ABLE Accounts

•Benefit: Middle-class families supporting disabled dependents can now claim the retirement saver’s credit for contributions to ABLE accounts, making it easier to plan for long-term care.

7. Enhances Deductions for Seniors

•Benefit: Seniors 65+ get an extra $4,000 deduction through 2028, phasing out at higher incomes. It eases the tax burden for retirees living on fixed incomes.

8. Protects Education Support

•Benefit: Keeps student loan forgiveness for death or disability tax-free, ensuring families aren’t burdened with IRS bills during tragedy.

9. Expands Earned Income Eligibility

•Benefit: By recognizing new forms of income (like certain religious community earnings and previously excluded tip income), more working families can qualify for refundable credits.

10. Encourages Work, Not Welfare

•Benefit: The bill’s framework rewards active earners and small business owners while simplifying tax compliance. By supporting work through deductions and credits, it reduces dependency and promotes upward mobility.

7:06 PM · May 19, 2025
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