A Guide to the Tax Cuts In and Out of Trump’s ‘Big, Beautiful Bill’
By Kelly Phillips Erb
Updated May 14, 2025
In a significant move that aims to reshape the American tax landscape, President Donald Trump’s draft House version of a massive GOP tax and budget bill, often referred to as his "big beautiful bill," emerges as a pivotal document. The legislation proposes a whopping $3.7 trillion price tag for tax cuts over the next decade, as reported by the Joint Committee on Taxation (JCT).
Making Tax Cuts Permanent
A cornerstone of this draft bill is the proposal to make many of the expiring provisions from Trump’s previous tax agenda, the Tax Cuts and Jobs Act (TCJA), permanent. The TCJA, introduced in 2017, was a keystone of Trump’s economic policy, which dramatically altered the tax code, lowering rates for corporations and individuals alike.
This latest draft aims not only to maintain these cuts but also to enhance certain benefits. For example, it seeks to address the expiration of some tax benefits and make them permanent, ensuring that American taxpayers can count on these advantages moving forward.
Key Proposals and Highlights
One of the significant components of this draft bill is the enhancement of the child tax credit. While the existing structure provides necessary financial relief for families, the legislation proposes an increase that could provide even greater support for working parents.
Additionally, tax breaks surrounding tips and overtime pay are set for a temporary boost under this proposal. Supporters argue that these changes would offer immediate financial benefits to workers in the service sector and beyond, potentially increasing their take-home pay significantly.
The Political Landscape
As the draft moves through the legislative process, it is expected to face scrutiny and debate, especially concerning its potential impact on the national deficit and economic inequality. Critics may voice concerns over the significance of the tax cuts, questioning whether they primarily benefit wealthier Americans or corporations at the expense of public services and infrastructure investment.
However, proponents of the bill argue that these tax cuts stimulate economic growth, create jobs, and ultimately benefit all Americans by allowing them to keep more of their hard-earned money.
Looking Ahead
The journey for Trump’s ‘big beautiful bill’ from draft to ratification will likely involve negotiations and amendments to address differing views among lawmakers. As the process unfolds, taxpayers across the country will be keenly watching how these proposed changes could reshape their financial landscape over the next decade.
In summary, Trump’s proposed tax cuts aim to make significant adjustments to the current tax framework, with promising revisions to child tax credits and temporary benefits for tips and overtime. As political discussions continue, the full extent of these plans and their long-term effects remain to be seen.
Stay informed as we continue to track developments on this pivotal legislation. For more financial insights and updates on the latest tax policies, subscribe to our newsletters.
Share this article:
