Education
OBBB Becomes OBBL
Many said it couldn’t be done, and others (including me) were merely skeptical to some degree. Back in January 2025, President Trump 47 indicated to House Speaker Mike Johnson that he did not want to partition Trump’s tax plan into several components. That created a bit of an uproar in Washington, D.C., as that is “NOT THE WAY WE’VE ALWAYS DONE IT.”
What I, and many others, didn’t give enough credit, was the political and practical power of Trump. Through pure force of will, he gathered support in Congress, and across the country, for creating One Big Beautiful Bill, and skeptics everywhere pooh-poohed his chances of success.
Fittingly, on Independence Day, we kicked off a year of counting down to our nation’s 250th year of Independence, with the signing of One Big Beautiful Bill (OBBB) into the One Big Beautiful Law (OBBL). The ceremony was not without fanfare, I might add. You know — Trump Style! Now that the ink has dried, I am 86ing the term OBBB, in favor of OBBL.
Reportedly comprised of 940 pages, OBBL will impact virtually every American. We will begin by explaining some key provisions we believe will have the largest impact on readers, listeners, clients, and friends.
Tax Rates and Brackets. The Tax Cuts and Jobs Act of 2017 (TCJA) reduced Individual Income Tax Rates, while simultaneously widening Individual Income Tax Brackets. In combination, these items assured a vast majority of Americans receive a substantial tax cut (for 8 years). As of the OBBL, those tax reduction provisions have been codified and made permanent.
Standard Deduction. For all taxpayers, the Standard Deduction, which doubled in TCJA, has increased an additional 10%, for each of the 4 years of the Trump 47 Presidency. Larger Cost of Living Adjustments (COLAs) make it even better for taxpayers in the lowest three Tax Brackets.
Child Tax Credits. For 40 million Americans with children, the Child Tax Credit was increased to $2,200, made permanent, and inflation indexed.
No Tax on Tips. Millions of Americans in jobs that rely on Tip Income will pay no Income Tax on up to $25,000 of Tip Income annually.
No Tax on Overtime. For approximately 80 million Americans, up to $12,500 of annual overtime pay is no longer subject to Federal Income Tax.
Charitable Deduction Improvement. A new, above-the-line deduction for Charitable Contributions up to $1,000 person, or $2,000 per couple, allows everyone to reduce taxable income for donations to their favorite charities.
By far, OBBL’s most important provision is the permanent codification of tax provisions from TCJA that were set to expire on December 31, 2025, resulting in a record-breaking tax increase on Americans. In coming weeks, we will report on further provisions that affect great numbers of American taxpayers.
