At 1,116 pages long, Trump’s latest tax plan promises sweeping changes, but not everyone comes out on top. US President Donald Trump ’s massive new tax proposal, titled the One Big Beautiful Bill Act , is making waves in Washington. The bill passed the House of Representatives by a razor-thin margin of 215–214 on Thursday. It now moves to the Senate, where further changes are likely.
The plan aims to make Trump’s 2017 tax cuts permanent, overhaul several tax rules, and make major spending changes. While it offers some benefits to American households overall, experts warn the biggest gains will go to the wealthiest, while low-income groups may lose out, reports USA Today.
The Congressional Budget Office (CBO) and independent analysts have already taken a closer look at who stands to win and who stands to lose.
Winners: Who gains under Trump’s planHigh-income earners
According to the nonpartisan Tax Policy Center, those earning $217,000 or more a year would see the biggest tax breaks. “The bill would cut taxes on average by about $2,800 in 2026,” the centre found, with nearly a quarter of those cuts going to people earning over $1.1 million annually.
Families with children
The Child Tax Credit would rise by $500 to $2,500 through 2028, before dropping to $2,000. But there’s a catch — around 4.5 million children may become ineligible under new rules requiring both parents to have a Social Security number.
Additionally, parents with children under eight would receive $1,000 per child to open special savings accounts called “MAGA” accounts, short for Money Accounts for Growth and Investment.
Car buyers
Buying American could come with perks. The bill allows a temporary tax deduction of up to $10,000 in car loan interest — but only for US-made vehicles.
Workers earning overtime
Overtime pay would no longer be taxed under the new plan. That includes federal and state income taxes, as well as Social Security and Medicare deductions. A study by the Tax Foundation and Yale’s Budget Lab suggests this change could reduce federal revenue by as much as $866 billion between 2025 and 2034.
Tipped workers
Waiters and other tipped employees would also benefit — tips would not be taxed. Although tips are often underreported, the IRS estimates businesses underreport by as much as $23 billion. This tax break on tips would end after 2028.
Losers: Who could end up paying the price
Low-income Americans
Those earning under $50,000 a year could end up worse off. People with annual incomes between $17,000 and $51,000 might lose about $700, and those earning less than $17,000 could lose over $1,000. These losses would stem mainly from cuts to assistance programmes such as Medicaid, food stamps (SNAP), and student loan support.
SNAP and Medicaid recipients
The bill proposes cutting $698 billion from Medicaid, which could leave 7.6 million Americans without health insurance over the next decade, the CBO said. SNAP would also face a $267 billion cut, with added work requirements for recipients aged 55 to 64. Currently, about 42 million Americans rely on food stamps.
Students and families with education loans
Student loan forgiveness rules introduced under President Joe Biden would be cancelled. The number of repayment plans would shrink to just two. The bill would also cap the amount parents and undergraduates can borrow, and eliminate loans for future graduate students.
The federal budget
Despite all the cuts, the bill could still increase the federal deficit by $3.8 trillion from 2026 to 2034, according to the CBO. That figure factors in the extended tax cuts and the resulting drop in government revenue.
Undocumented immigrants
The plan includes steep fee hikes for those navigating the immigration system. Asylum seekers would face a $1,000 application fee and $500 payments for work permits every six months. Immigrants would also be charged hundreds of dollars to appeal court decisions. States would be discouraged from using local funds to provide Medicaid to undocumented children.
The plan aims to make Trump’s 2017 tax cuts permanent, overhaul several tax rules, and make major spending changes. While it offers some benefits to American households overall, experts warn the biggest gains will go to the wealthiest, while low-income groups may lose out, reports USA Today.
The Congressional Budget Office (CBO) and independent analysts have already taken a closer look at who stands to win and who stands to lose.
Winners: Who gains under Trump’s planHigh-income earners
According to the nonpartisan Tax Policy Center, those earning $217,000 or more a year would see the biggest tax breaks. “The bill would cut taxes on average by about $2,800 in 2026,” the centre found, with nearly a quarter of those cuts going to people earning over $1.1 million annually.
Families with children
The Child Tax Credit would rise by $500 to $2,500 through 2028, before dropping to $2,000. But there’s a catch — around 4.5 million children may become ineligible under new rules requiring both parents to have a Social Security number.
Additionally, parents with children under eight would receive $1,000 per child to open special savings accounts called “MAGA” accounts, short for Money Accounts for Growth and Investment.
Car buyers
Buying American could come with perks. The bill allows a temporary tax deduction of up to $10,000 in car loan interest — but only for US-made vehicles.
Workers earning overtime
Overtime pay would no longer be taxed under the new plan. That includes federal and state income taxes, as well as Social Security and Medicare deductions. A study by the Tax Foundation and Yale’s Budget Lab suggests this change could reduce federal revenue by as much as $866 billion between 2025 and 2034.
Tipped workers
Waiters and other tipped employees would also benefit — tips would not be taxed. Although tips are often underreported, the IRS estimates businesses underreport by as much as $23 billion. This tax break on tips would end after 2028.
Losers: Who could end up paying the price
Low-income Americans
Those earning under $50,000 a year could end up worse off. People with annual incomes between $17,000 and $51,000 might lose about $700, and those earning less than $17,000 could lose over $1,000. These losses would stem mainly from cuts to assistance programmes such as Medicaid, food stamps (SNAP), and student loan support.
SNAP and Medicaid recipients
The bill proposes cutting $698 billion from Medicaid, which could leave 7.6 million Americans without health insurance over the next decade, the CBO said. SNAP would also face a $267 billion cut, with added work requirements for recipients aged 55 to 64. Currently, about 42 million Americans rely on food stamps.
Students and families with education loans
Student loan forgiveness rules introduced under President Joe Biden would be cancelled. The number of repayment plans would shrink to just two. The bill would also cap the amount parents and undergraduates can borrow, and eliminate loans for future graduate students.
The federal budget
Despite all the cuts, the bill could still increase the federal deficit by $3.8 trillion from 2026 to 2034, according to the CBO. That figure factors in the extended tax cuts and the resulting drop in government revenue.
Undocumented immigrants
The plan includes steep fee hikes for those navigating the immigration system. Asylum seekers would face a $1,000 application fee and $500 payments for work permits every six months. Immigrants would also be charged hundreds of dollars to appeal court decisions. States would be discouraged from using local funds to provide Medicaid to undocumented children.
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