Posted On May 25, 2025

The Latest On The “One Big Beautiful Bill Act” - A Sweeping Tax and Spending Package [Part 2]

- Will you benefit from the new tax legislation if passed? Well, if you own a business and or make a certain threshold income, chances are that you might benefit from it.

- Those who do not own businesses nor meet a certain threshold may not benefit from it. They may actually be penalized or suffer consequences.

Feel free to contact Asher Taxation Law for further consultation or help.

As of late May 2025, the "One Big Beautiful Bill Act"—a sweeping tax and spending package championed by President Donald Trump—has narrowly passed the U.S. House of Representatives and is now under consideration in the Senate.(New York Post)

🏛️ Key Provisions of the Bill

• Tax Cuts: The legislation seeks to permanently extend the 2017 Tax Cuts and Jobs Act, introduce new tax exemptions for tips and overtime pay, and increase the child tax credit to $2,500. (New York Post)
• Social Program Reductions: To offset an estimated $3.8 trillion in lost tax revenue over a decade, the bill proposes over $1 trillion in cuts to federal safety net programs, including Medicaid and SNAP, and imposes stricter work requirements. (AP News)
• Defense and Immigration Spending: The bill allocates $350 billion in new spending, including funding for defense initiatives and immigration enforcement measures such as building the border wall and increasing ICE personnel. (AP News)
• State and Local Tax (SALT) Deduction: It proposes raising the SALT deduction cap to $30,000 for individuals earning $400,000 or less, though lawmakers from high-tax states are advocating for a higher threshold. (New York Post)

📊 Economic and Political Implications

• Economic Outlook: Proponents argue the bill will stimulate economic growth, with the White House projecting up to 5.2% GDP growth by 2029. However, economists from institutions like Penn Wharton and Goldman Sachs express skepticism, citing potential negative impacts on GDP due to cuts in social programs and the repeal of green energy incentives. (POLITICO)
• Political Dynamics: The bill passed the House with a narrow 215-214-1 vote, reflecting divisions within the Republican Party. Key GOP lawmakers have expressed concerns over aspects like Medicaid reforms and the SALT deduction cap. The Senate is expected to scrutinize the bill further, with potential challenges from both conservative and moderate senators. (The Washington Post)
• The Washington Post
• POLITICO
• AP News