📜 Trump’s “Big Beautiful Bill”: What It Could Mean for Your Taxes

You may have heard the buzz about former President Trump’s newly proposed “One Big Beautiful Bill Act”—and yes, that’s the real name. While it may sound like something off a reality show, this legislation is packed with real-life implications for your finances, particularly your taxes.

As always, at Kamish & Associates, we're here to break it down without the political fluff—just the numbers, facts, and what you need to know.

💰 What’s In the Bill for You?

🔹 Permanent Extension of 2017 Tax Cuts

Remember those individual tax breaks from the 2017 Tax Cuts and Jobs Act (TCJA)? They were scheduled to expire in 2025. This bill locks them in for good, aiming to keep more money in your pocket—but also raising questions about long-term federal revenue.

🔹 Bigger Standard Deduction

The bill proposes a larger standard deduction, which means fewer people itemizing and more simplicity at tax time. Bonus: If you're a senior, you're looking at up to an extra $6,000 deduction—just for being wise and fabulous.

🔹 Child Tax Credit Bump

Parents, rejoice! The child tax credit would increase to $2,500 per child through 2028, then back to $2,000 afterward. Every little bit helps when diapers cost more than dinner.

🔹 Tax-Free Tips & OT (Temporarily)

From 2025 to 2028, income from tips and overtime would be federally tax-free. That’s a big win for workers in restaurants, hospitality, and shift-based industries.

🔹 SALT Deduction Cap Increase

Live in a high-tax state? The SALT cap would rise from $10,000 to $40,000 for households under $500,000 income. That’s a major shift if you itemize deductions.

🔹 Estate Tax Relief

Planning to pass down wealth? The estate tax exemption could jump to $15 million per person, adjusted for inflation. That’s serious room for legacy planning.

🏢 For Business Owners

✔️ QBI Deduction Made Permanent

The popular 20% deduction for pass-through businesses (QBI) would not only stick around—it might bump up to 23% starting in 2026.

✔️ 100% Bonus Depreciation Is Back

Big purchases like equipment or machinery? You may get to fully expense those costs upfront again between 2025–2030.

📉 How Are We Paying for This?

Glad you asked.

The bill includes significant spending cuts, especially to:

• Medicaid (nearly $930 billion)

• SNAP benefits (aka food stamps)

• Clean energy incentives

Many analysts, including the Congressional Budget Office, warn it could add $2.4–$3.3 trillion to the national debt over a decade.

🧮 So... Will You Pay More or Less?

That depends on your:

• Income level

• State of residence

• Number of kids

• Whether you're self-employed

• Whether you itemize deductions

To see how the proposed law affects your wallet, try the Big Beautiful Bill Tax Calculator.

🗳️ What’s Next?

As of now, the Senate passed its version. The House is reviewing, and both chambers will need to reconcile the differences before anything is signed into law.

Translation? It’s not law yet—but it’s moving.

🧾 Final Thoughts from Kamish

Love it or hate it, the Big Beautiful Bill could reshape the tax landscape. We're here to help you stay ahead of it. Need a personalized tax impact projection or strategy session? Let’s chat!