#Trump’s Tax Reform#Here’s the current update on Trump’s 2025 tax reform, formally dubbed the “One Big Beautiful Bill Act” (OBBBA):
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🗓️ Legislative Timeline & Key Status
The House passed the OBBBA last month, pushing for permanent extensions of the 2017 Trump tax cuts, plus new benefits like tax breaks on tips/overtime, expanded standard deductions, and a higher child tax credit .
The Senate recently approved debate on the bill by a narrow 51–49 vote and has initiated a “vote-a-rama” on amendments—aiming for final passage by July 4 .
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🧾 Major Tax Provisions
1. Permanent extension of 2017 TCJA rates – Stops the scheduled 2025 rollback and ties them to inflation indexing .
2. Standard deduction boost – Adds $1K (single) / $2K (joint) / $1.5K (head‑of‑household) annually through 2028 .
3. Child Tax Credit (CTC) – House sets credit at $2,500/child through 2028; Senate backs $2,200 .
4. SALT deduction cap raised – Increases to $40K (joint filers) from $10K, indexed for inflation until 2029, then reverts .
5. New tips/overtime tax break – Exempts certain tipped and overtime wages from federal income tax .
6. Trump “MAGA” accounts for children – One-time $1K credit and a $5K annual tax-exempt trust account .
7. Corporate & international tax tweaks – Maintains corporate tax at 21%, adjusts GILTI, FDII and raises BEAT slightly .
8. Estate tax – Increases exemption to $15M per person and makes it permanent .
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🏛️ Social Safety Net & Spending Offsets
Medicaid & SNAP cuts – Adds work and asset restrictions; states pick up more costs; estimated ~11–12M fewer insured by 2034 .
Eliminated green energy tax credits & EV incentives .
No repeal of tax on Social Security benefits, despite earlier campaign promises. Instead, provides $4–6K senior deduction .
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💸 Fiscal & Economic Impact
Added debt surge – CBO projects $3.3T increase in debt over 10 years; dynamic analysis raises that to $2.8T–$3.3T plus interest costs .
Other studies estimate up to $4–5T in lost revenue depending on provisions extended .
Administration forecasts predict growth and deficit reduction—but those are contested by nonpartisan models .
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⚖️ Winners & Losers
💰 High-income & wealthy households benefit most—expanded SALT cap, estate tax cuts, carried-interest rules .
Middle-income families gain some relief via standard deduction, CTC, tax breaks—but still face challenges .
Low-income households may lose coverage and support due to safety-net cuts .
Seniors see added deductions but no full repeal of SS taxes .
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📅 What’s Next?
The Senate is finalizing amendments now; if passed, the House must reconcile its version before sending it to Trump.
Vote timeline is tight—aiming by July 4th .
By mid-summer, debt ceiling debate may hinge on this outcome.
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In Summary
Trump’s 2025 tax reform sticks to his 2017 blueprint but on steroids—permanent tax cuts, bigger deductions and credits, and new child-focused accounts. However, the cost is steep, going hand‑in‑hand with major safety-net reductions and a hefty fiscal burden. The policy divides sharply across income groups and party lines.
Would you like a breakdown of how this might affect your income bracket, or deeper detail on a particular provision?
