The One Big Beautiful Bill Act is 1 year old. Here are the winners and losers.
As we approach the one-year mark since President Trump signed the “One Big Beautiful Bill Act,” the impact of this landmark tax and spending law is becoming clearer. The legislation has brought about significant changes, with winners and losers emerging as a result of its provisions.
The law, which lowered taxes for millions of households and businesses, also involved cuts to federal spending on programs like Medicaid and food stamps. According to White House spokesman Kush Patel, the Working Families Tax Cut, a key component of the law, is designed to provide both immediate economic relief and lay the foundation for long-term economic growth. The aim is to create jobs, raise wages, and stimulate investment through provisions like full equipment expensing and a 20% tax deduction for small businesses.
While Republican lawmakers praise the legislation for offering tax relief to low- and middle-income families and reducing waste in federal programs, Democrats argue that the tax cuts primarily benefit high-income families and corporations at the expense of vulnerable Americans. Andrew Lautz, the director of tax policy at the Bipartisan Policy Center, acknowledges that the law contains provisions that benefit both the middle class and the wealthy.
With several major provisions set to take effect in the coming years, the current analysis focuses on the parts of the law that are already impacting households, businesses, and federal programs.
Winners: High-income households
One of the major beneficiaries of the OBBBA are high-income households, who saw tax benefits from the extension of provisions from the 2017 Tax Cuts and Jobs Act. The preservation of the top individual tax rate at 37% and an increase in the state and local tax deduction have particularly favored the top 2% of U.S. taxpayers.
Winners: Corporations
Corporations have also reaped the rewards of the OBBBA, with provisions like 100% bonus depreciation for short-lived asset investments and immediate deductibility of domestic research and development expenses contributing to lower tax bills for businesses.
Winners: Tipped and overtime workers
The law includes provisions aimed at helping tipped and overtime workers retain more of their income, benefiting millions of working-class Americans in the process.
Winners: Senior citizens
Taxpayers over the age of 65 received a $6,000 bonus deduction under the OBBBA, with about 34 million seniors claiming this deduction.
Winners: Families saving money for their kids
The creation of Trump Accounts, a tax-advantaged investment account for children, has provided families with a new way to save for their kids’ future, with over 6 million Americans opening accounts so far.
Losers: SNAP recipients
The OBBBA brought significant changes to the SNAP program, imposing new work requirements that have led to a decline in participation by over 4 million people. The impact of these changes extends to retailers who may see reduced revenue as a result.
Losers: EV and clean energy businesses
Electric vehicle incentives were ended by the OBBBA last year, causing a sharp decline in EV sales. Additionally, some clean energy credits were phased out, impacting businesses in the clean energy sector.
