The Beautiful Bill: How It Impacts You

After six months of drama, threats and compromise, Trump’s One Big Beautiful Bill (OBBB) is now law. But what’s in it and how will it impact you and your money?

This summary is qualified by the fact that the bill is over 1,000 pages long and it’s impossible to cover every provision and loophole in a single article.

Even with the items mentioned below, there are technical definitions and exceptions to exceptions that require expert analysis beyond the scope of one article. Some of the tax credits and deductions are phased out for those with high incomes. Different effective dates mean that some of these provisions are not effective until 2026.

That said, here are the highlights:

• Permanently extends the lower tax rates Trump passed in 2017.
• Increases the standard deduction by $750 for individuals and $1,500 for couples.
• Permanent increase in the child tax credit to $2,200.
• Full expensing of business capital investment and domestic research and development expenses.
• Eliminates most itemized deductions.
• Limits on gambling loss deductions so that winnings may still be taxed.
• Eliminates the moving expense deduction except for active-duty military and intelligence officials.
• Raise the cap on state and local tax deductions to $40,000.
• No tax on overtime pay up to $12,500 for individuals and $25,000 for a couple.
• No tax on tips up to $25,000.
• Tax credits allowed for contributions to groups that fund private school scholarships.
• Increase the reporting threshold for payments to independent contractors.
• Taxes on farmland sales can be paid in installments.
• Eliminate the firearms transfer tax.
• Increase the income tax on large college endowments.

Other Changes and Provisions

In addition to these provisions, there are some important changes of note.

Environmental related provisions will expedite environmental reviews for investment projects and rescind funds under the Inflation Reduction Act of 2022 (actually the Green New Scam in disguise) for green energy programs that were diverted to progressive activist groups.

In the area of natural resources, the OBBB will replenish the Strategic Petroleum Reserve that was depleted by Joe Biden for political purposes. The moratorium on new coal leasing permits will end. Oil and gas leasing in Alaska is approved. Onshore oil and gas lease sales will be expanded, and timber harvesting will be increased.

This is why your American Birthright is more important than ever. As the Trump administration makes it easier for energy and mining companies to do business with the federal government, it opens up profit opportunities for you as an investor.

Of course, there’s more to the OBBB, but the most important provisions are noted above. This list of funding, recissions and tax programs show that OBBB was truly a landmark piece of legislation comparable to LBJ’s Great Society and FDR’s Hundred Days programs.

The ultimate success of the OBBB remains to be seen, but there is no question about its economic impact on affected programs and that it was an historic example of promises made and promises kept by President Trump.