If you’re among America’s highest earners or planning to pass down millions to your children, the newly signed “One Big Beautiful Bill Act” might be your favorite legislation of the decade. While it’s being sold as a tax cut for working families, a closer look reveals that the wealthiest Americans are the biggest winners—with tax breaks that could save them tens of thousands of dollars a year, or even more. Meanwhile, low-income families face slashed benefits and fewer safety nets.
Let’s break down what this sweeping tax overhaul really means, who benefits the most, and who could lose out.
How the Rich Are Raking It In
The bill locks in and expands key tax perks for high-income households, real estate investors, and business owners:
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Permanent tax cuts: Trump’s 2017 tax cuts were set to expire in 2025, but this bill makes those reduced rates permanent. That means top earners will continue paying just 37% instead of reverting to the pre-2017 rate of 39.6%—a major savings for those with large incomes.
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Estate tax bonanza: The estate tax exemption has now doubled to $30 million for married couples—up from $14.28 million. Wealthy families can pass down vast fortunes without paying a dime in federal taxes.
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State and local tax (SALT) deduction cap raised: For households earning less than $500,000, the SALT cap jumps from $10,000 to $40,000. This mostly helps wealthy people in high-tax states like California, New York, and New Jersey, allowing them to deduct much more on their federal returns.
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Business tax sweetener: Small business owners and investors can now deduct 23% of pass-through income, up from 20%. This primarily helps high-earning partnerships, real estate developers, and consultants.
Some Perks for Middle Class and Seniors—But They’re Temporary
There are a few popular provisions aimed at middle-income workers and retirees, but they expire after 2028:
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No tax on tips and overtime: If you earn under $150,000 ($300K for couples), you can exclude up to $25,000 in cash tips and overtime from income taxes.
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Senior tax relief: Retirees age 65+ making less than $75,000 ($150K for couples) get a special $6,000 deduction to offset taxes on Social Security benefits.
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Auto loan interest deduction: For U.S.-assembled cars purchased between 2025–2028, taxpayers earning under $100K (or $200K jointly) can deduct up to $10,000 in car loan interest.
These breaks sound great, but critics point out they are short-lived, while the rich get permanent benefits.
What It’s Costing the Rest of America
To pay for these tax cuts, the bill slashes funding for several critical programs:
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Medicaid takes a major hit, losing nearly $930 billion over the next decade, threatening healthcare coverage for millions of low-income Americans.
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SNAP benefits (food stamps) face severe reductions, which experts warn could push more families into food insecurity.
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Clean energy incentives introduced under the Biden administration are wiped out, including tax credits for electric vehicles and home energy upgrades.
National Debt? Exploding.
According to the Congressional Budget Office, the bill will add roughly $3.4 to $3.8 trillion to the national deficit over the next 10 years. The federal debt ceiling was also raised by $5 trillion, raising serious concerns among fiscal watchdogs.
Winners and Losers: By the Numbers
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Top 20% of earners: Gain an average of $12,000 per year in tax savings.
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Bottom 20%: Lose out by an average of $1,600 per year, mostly due to cuts in public benefits.
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Middle-income households: Gain a modest $500 to $1,000 annually, but lose access to key safety nets.
The biggest breaks go to those who already have the most, sparking criticism that the bill prioritizes wealthy donors and corporations over working families.
Final Word
The “Big Beautiful Bill” may offer short-term perks for some, but its long-term impact favors the top 1% in a major way. With deep program cuts, growing deficits, and most benefits locked in for the ultra-rich, the bill is being praised in boardrooms and condemned in living rooms across the country.
