From an increase in the child tax credit to a repeal of student loan forgiveness, here’s how Donald Trump’s „big beautiful bill“ could affect you.
From taxes to student loan forgiveness, provisions in President Donald Trump’s „big beautiful bill“ are one step closer to affecting Americans‘ wallets.
Earlier this week, the Senate narrowly passed its version of Trump’s expansive domestic agenda that would extend the president’s 2017 tax cuts and make key changes to the tax system, along with implementing significant changes to Medicaid and the Supplemental Nutrition Assistance Program.
Now, House Republicans have to plot a way forward. They could accept the Senate’s changes to the legislation and send it to Trump’s desk, or make additional tweaks of their own. Trump has pressured Congress to pass the bill by the Fourth of July, adding a deadline to the debate.
Beyond the effects on Americans‘ wallets, the legislation provides roughly $150 billion to ramp up immigration enforcement.
The nonpartisan Congressional Budget Office said the bill would add at least $3.3 trillion to the US deficit. In May, Moody’s Analytics downgraded the US’s credit rating, citing rising federal debt. It said an extension of Trump’s 2017 taxes could add $4 trillion to the deficit over the next decade. This could lead to higher interest rates on mortgages, auto loans, and more down the road.
Here are four other key ways the tax bill could affect Americans‘ finances.A slew of tax policies
Many of Trump’s campaign promises are included in the tax bill.
The legislation would eliminate taxes on tips and overtime wages. About two-thirds of tipped workers earn enough to owe federal income tax. After a final bill is signed, the Trump administration is expected to release a list of qualifying occupations.
