Cameron Miranda
President Donald Trump signed the One Big Beautiful Bill into law on July 4, 2025, after it was passed by the House and Senate. The bill, also known as the Tax Cuts and Jobs Act (TCJA), was touted as the largest tax cuts in history and included a range of tax relief measures and spending bills. The TCJA was signed into law by Trump in 2017 during his first term and was the largest tax code overhaul in three decades. It cut taxes for shareholders and individual taxpayers, with many benefits for individuals expiring in 2025. The 2017 Trump Tax Law was criticised for being skewed towards the rich and failing to deliver on its promises.
| Characteristics | Values |
|---|---|
| Name of the tax law | Tax Cuts and Jobs Act (TCJA) |
| Year | 2017 |
| Signed into law by | President Donald Trump |
| Type of tax law | Major overhaul of the tax code |
| Impact | Reduced taxes for shareholders and individual taxpayers |
| Impact | Removed the mandate requiring individuals to purchase health insurance |
| Impact | Increased the standard deduction for single filers and married couples filing jointly |
| Impact | Suspended the personal exemption |
| Impact | Ended the individual mandate, a provision of the Affordable Care Act |
| Impact | Introduced relief measures aimed at reducing taxable income for some workers |
| Impact | Proposed the elimination of capital gains taxes on primary home sales |
| Impact | Reduced federal spending and extended/expanded tax cuts |
| Supporters | Trump Administration's Council of Economic Advisors |
| Supporters | 137 economists |
| Critics | Democrats |
| Critics | Harvard economists Larry Summers and Jason Furman |
| Critics | 13 tax law professors |
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What You'll Learn
The Tax Cuts and Jobs Act (TCJA)
The TCJA cut taxes for shareholders and individual taxpayers, with the highest earners expected to benefit the most. However, the cuts for individuals will expire in 2025 unless the Act is extended. The reform impacted individuals based on their income level, filing status, and deductions. It also permanently removed the mandate requiring individuals to purchase health insurance, a key provision of the Affordable Care Act.
The TCJA changed deductions, depreciation, expensing, tax credits, and other items affecting businesses. It also impacted mortgage interest deductions for married couples filing jointly, limiting the deduction to $750,000 worth of debt. This change will expire after 2025. The TCJA repealed the Pease limitation on itemized deductions and gradually reduced their value when adjusted gross income exceeded a certain threshold. It also suspended the personal exemption, which was $4,150, through 2025.
According to a 2017 report by the nonpartisan Tax Policy Center, the TCJA was expected to lower taxes by an average of $1,600 in 2018 and 2025. The top 20% of Americans by income were projected to receive around 65% of the tax savings, while the bottom 80% of taxpayers (with incomes under $149,400) would receive 35% of the benefit in 2018 and 34% in 2025. However, the report also estimated that 72% of taxpayers would be adversely impacted in 2019 and beyond if the tax cuts were paid for by spending cuts.
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The One Big Beautiful Bill
On July 4, 2025, President Donald Trump signed the One Big Beautiful Bill into law. The Act combines historic tax cuts with landmark investments in America's future and defence. The bill includes a $9 billion investment in US Arctic security, permanent relief for small businesses, and a $12.5 billion modernisation of the air traffic control system.
The bill overhauls the "death tax" on someone's estate upon death, which is particularly important for large-scale agricultural producers. It also increases and makes permanent the Small Business Estate Tax Exemption, with thresholds set at $15 million for individual filers and $30 million for joint filers.
Additionally, the bill provides protection for two million family farms from double taxation and strengthens Medicaid by eliminating waste, fraud, and abuse. It also includes funding for the Golden Dome missile defence system.
The bill has been praised by various groups, including farmers, the National Pork Producers Council, and Rep. Randy Feenstra, who called it a "pro-family, pro-worker, pro-growth economic package". However, it is essential to note that the bill has also faced criticism for its potential negative impact on taxpayers who do not qualify for specific deductions or credits.
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The 2017 Trump Tax Law
The Trump administration claimed that the TCJA would boost economic growth and lead to a $4,000 increase in household income. However, research has failed to find evidence of a surge in wages following the implementation of the law. Instead, it has been argued that the 2017 Trump Tax Law primarily benefited high-income households, with the Congressional Budget Office (CBO) estimating that the law would cost $1.9 trillion over ten years.
The TCJA also had implications for healthcare. It removed the individual mandate, a key provision of the Affordable Care Act (ACA), which had required individuals to purchase health insurance or face tax penalties. Additionally, the law included tax cuts for shareholders and individual taxpayers, many of which are set to expire in 2025.
In conclusion, the 2017 Trump Tax Law, or the Tax Cuts and Jobs Act, significantly altered the US tax landscape, reducing tax burdens and simplifying the filing process. However, it has been criticised for disproportionately benefiting high-income households and contributing to a decline in federal revenue.
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Trump's Tax Plan
President Donald Trump's tax plan, known as the "One Big Beautiful Bill" or the "Tax Cuts and Jobs Act" (TCJA), was signed into law on July 4, 2025. The plan includes a combination of tax cuts, landmark investments, and legislative changes aimed at benefiting American workers, farmers, and businesses.
The TCJA is the largest tax code overhaul in three decades, impacting both taxpayers and business owners through tax cuts and changes to tax policies. One significant change is the creation of a single flat corporate tax rate of 21%. The Act also removes the mandate requiring individuals to purchase health insurance, which was previously a key provision of the Affordable Care Act.
Additionally, the plan eliminates taxes on social security for millions of seniors and provides permanent relief for small businesses. It also includes a $12.5 billion modernization fund for the air traffic control system and a historic investment in US Arctic security, with nearly $9 billion allocated for icebreakers.
However, critics argue that the tax plan disproportionately favours the wealthy and falls short of delivering on its promises. It is estimated that the tax cuts will cost $1.9 trillion over ten years, adding to the national debt. There is also evidence that the economic benefits have not trickled down to most workers, with no indication of a surge in wages following the implementation of the plan.
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Corporate tax cuts
The Tax Cuts and Jobs Act (TCJA) was signed into law by President Donald Trump in 2018 during his first term. The Act was the largest tax code overhaul in three decades, impacting both taxpayers and business owners.
The TCJA created a single flat corporate tax rate of 21%, down from 35%. It also reduced the tax rate on capital gains and dividends, as well as the tax on estates. The Act retained the seven individual income tax brackets, with the top rate falling from 39.6% to 37%, and the lowest bracket remaining at 10%. The standard deduction was raised, and the personal exemption was suspended. The TCJA also ended the individual mandate of the Affordable Care Act, which had levied tax penalties for individuals who did not obtain health insurance coverage.
The TCJA was expected to boost economic growth and yield broadly shared benefits, with the Trump Administration claiming it would lead to a $4,000 boost in household income. However, research has failed to find evidence of these gains trickling down to most workers. The TCJA is also estimated to have reduced revenues, with a projected cost of $1.9 trillion over ten years.
In 2025, President Trump signed the One Big Beautiful Bill Act (OBBBA) into law, which included permanence for major individual and corporate provisions of the TCJA, along with additional temporary tax cuts for individuals and businesses. The OBBBA is projected to increase long-run GDP, hours worked, wages, and the capital stock. However, it is also estimated to reduce federal tax revenue by $4.1-$5.0 trillion from 2025-2034.
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Frequently asked questions
President Donald Trump.
The One Big Beautiful Bill included the largest tax cuts in history, with landmark investments in America's future and defence.
The bill included no tax on social security, overtime, or tips, and permanent relief for small businesses. It also included funding for national security and a $12.5 billion modernisation of the air traffic control system.
The One Big Beautiful Bill was signed into law on July 4.
The bill was expected to benefit workers and families making less than $50,000 per year, with bigger paychecks of $10,000+ more in annual take-home pay. It also provided permanent increases to the Child Tax Credit for over 40 million families.
