Republican lawmakers have rolled out what they’re calling “The One, Big, Beautiful Bill”—a sweeping and controversial tax proposal that mixes deep Medicaid cuts with generous tax breaks for high earners, parents, and tipped workers. Touted as a fulfillment of several Trump-era campaign promises, the bill could reshape everything from overtime pay to electric vehicle incentives—while ballooning the federal deficit by nearly $5 trillion over the next decade.
Unveiled by the House Ways and Means Committee, the proposal aims to slash taxes across the board, but not equally. According to a preliminary report by the Urban Institute’s Tax Policy Center, nearly 70% of the benefits in 2026 would go to households earning more than $217,000 annually. Middle-class and lower-income Americans would see far smaller gains—and many could lose health coverage due to the bill’s drastic Medicaid reductions.
What’s in the GOP’s Giant Tax Proposal?
Massive Medicaid Cuts
At the heart of the proposal is a staggering $880 billion in cuts to Medicaid, the healthcare lifeline for low-income Americans. The reduction has sparked backlash, not just from Democrats but also from some Republicans, including Missouri Sen. Josh Hawley. A recent report from the Congressional Budget Office warns that millions could lose coverage if the plan passes.
Tax Breaks for Tips and Overtime
Starting in 2025, the bill would eliminate federal income tax on tips and overtime pay—two forms of income central to workers in hospitality and service industries. To prevent abuse by high earners, the tax break would apply only to those in traditionally tipped jobs and earning less than $160,000.
A Boost to the Child Tax Credit
Parents would see a bump in the child tax credit, increasing from $2,000 to $2,500 through 2029. It’s a nod to rising living costs, though critics argue it doesn’t go far enough for low-income families.
Bigger Standard Deductions
Taxpayers would enjoy a temporary $1,000 increase in the standard deduction, with seniors aged 65 and up getting an additional $4,000 from 2025 to 2028. That extra deduction phases out for individuals earning over $75,000, or $150,000 for couples.
Higher SALT Deduction for High-Tax States
The bill would triple the SALT deduction (state and local taxes) cap from $10,000 to $30,000 for married couples—a significant win for residents of high-tax states like California and New York.
Estate Tax Changes
The threshold for federal estate taxes would rise to $15 million, benefiting the wealthiest Americans and drawing criticism for favoring the ultra-rich.
New MAGA Savings Accounts for Kids
The bill introduces a “Money Account for Growth and Advancement”—or MAGA account—which lets parents invest up to $5,000 a year for a child’s education, home purchase, or business startup. Babies born between 2025 and 2028 would automatically get a $1,000 deposit.
Car Loan Interest Deduction—With a Catch
Buyers of U.S.-made cars could deduct some car loan interest, but the perk fades out for those earning $100,000 or more.
Charitable Deduction Without Itemizing
A small but popular tweak: standard deduction filers could deduct up to $150 in charitable donations ($300 for couples), without itemizing.
What’s Getting Cut?
Electric Vehicle and Renewable Energy Credits Gone
The proposal wipes out $7,500 EV tax credits starting in 2026 and begins a rollback of clean energy incentives introduced under President Biden.
New Tax on Remittances
A 5% tax on money sent abroad by non-citizens would be introduced, with U.S. citizens exempt. It’s expected to impact millions of immigrant workers.
University Endowment Taxes
Private colleges with large endowments—like Harvard and Stanford—would face up to a 21% tax on investment income, continuing the GOP’s criticism of elite institutions.
Targeting Terrorist-Linked Nonprofits
The bill grants the State Department the power to revoke tax-exempt status from nonprofits it designates as supporting terrorism.
As the bill heads to committee, Republican leaders face a tightrope walk: they’ll need nearly unanimous support to get it through the House. In the meantime, debates are heating up—not just over what gets taxed, but over what gets left behind.
What about the PROMISE NO TAX ON SOCIAL SECURITY?
What about THE PROMISE NO TAX ON SOCIAL SECURITY? That better be in your so called
“ONE BIG BEAUTIFUL BILL” If not I will not support anything you or Congress does anymore