A NEW bill from the GOP was passed on Thursday, and it could save Americans some money in the coming years.
Several aspects of the legislation, including those involving Social Security, could potentially result in thousands for some.
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President Donald Trump has promised a “golden age” for Americans during his presidency, and the One Big Beautiful Bill Act is part of that vision.
Votes were 215 to 214 to get the spending bill through the House, and it will now go to the Senate, where changes are expected, per The Guardian.
A main point of the bill is extending the tax cuts permanently that Trump signed in 2017.
Those cuts included lowered income tax rates, an increased standard deduction, a child tax credit expansion, eliminated personal exemptions, a state and local tax deduction cap, a limited mortgage interest deduction, and a repealed individual mandate penalty.
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Businesses also saw corporate tax rate reductions, a territorial tax system, pass-through business deductions, full expensing, and limitations on deductions.
Some of the deductions are part of the Trump administration’s promise to help working-class families.
They could save select Americans between $1,000 and $4,000.
SAVINGS BREAKDOWN
The Child Tax Credit (CTC) that can be selected by eligible taxpayers when filing their annual returns is set to increase by $500 under the bill.
Additionally, parents will be given the option of opening “Trump accounts” to start saving money for their child’s home or schooling after they turn 18.
Once the age is hit, the government would contribute a free $1,000.
With Social Security, some seniors could also save cash.
There’s a new $4,000 deduction for those who qualify at 65 or older under the One Big Beautiful Bill.
Except, there’s only one problem with the money-saving benefits.
They don’t extend through Trump’s presidency.
Trump’s main policy points
DONALD Trump closed the Republican National Convention on July 18, telling supporters he wanted to become president for “all Americans.
- Implementing tax cuts, including no tax on tips.
- Protecting Social Security and Medicare – Trump said, “Incomes will skyrocket and the middle class will prosper like never before.”
- Protecting borders – He pledged to end the “border nightmare.” That means two things on day one – “Drill baby Drill,” as he said, and close the borders.
- Finishing building the wall.
- Keeping our “sons and daughters safe.”
- Replenishing the military and building a military “dome” – Trump insisted he could stop wars with just a phone call and said no military would be able to penetrate the USA if he came into office.
- Ending the war in Ukraine and imposing tariffs on Iran.
- Vowing to “beat” China.
- Working to decrease prices and ease inflation.
- Bringing down the cost of energy.
- Making cities “safe, clean and beautiful” again.
- Making it possible for Americans to buy gas-run cars by ending the electric vehicle mandate on the first day of his presidency.
So, once 2028 ends and his term finishes up in January 2029, the tax relief will expire.
The government’s deposits into the “Trump accounts” would also be no more, along with the $500 bump in the CTC.
WORK REQUIREMENTS
There are also several potential downsides being argued for by Democrats.
A point of specific contention is work requirements that would take place starting in 2027 for select Medicaid recipients.
According to The Urban Institute, a left-leaning think tank, the requirements could result in about 5.2 million Americans losing health insurance coverage due to a misunderstanding or being unable to prove their work hours were completed.
Work requirements would also be in place for those who need the Supplemental Nutrition Assistance Program (SNAP) benefits, which help pay for groceries and essential items.
About another 11 million Americans could lose those benefits, as per The Urban Institute’s research.
WEALTH HELPS
The non-partisan Congressional Budget Office (CBO) also released an estimate that noted mostly wealthier Americans will benefit from the One Big Beautiful Bill.
According to what the CBO found, those with higher incomes will see resources increase by 4% in 2027 and 2% in 2023 from the tax cuts.
Americans experiencing financial hardship will have a drop in resources by about 4% when 2033 rolls around.
Even so, some taxpayers are also getting direct payments soon.
Residents in a key state will get $1,000 this summer as part of a massive rebate program.
Others can get $500 monthly checks for two years, depending on whether they meet certain criteria.
