Cape News

American families, workers, small businesses, and manufacturers are set to benefit from what is being described as the largest tax cut in American history. The One, Big, Beautiful Bill passed the House of Representatives with a vote of 218-214 and is now awaiting President Trump's signature.

Ways and Means Committee Chairman Jason Smith (MO-08) stated, “For two years, the Ways and Means Committee has been preparing for this moment, and thanks to President Trump’s overwhelming victory in November, a historic, pro-growth, pro-America tax bill that delivers on the president’s promises to American workers and families will soon become law."

The bill aims to make permanent several provisions from the 2017 Trump tax cuts. It includes measures such as no taxes on tips, overtime pay, or car loan interest. There are also tax reliefs for seniors and incentives for businesses that manufacture in the U.S. and hire American workers.

Smith further commented on the legislation's impact: “This legislation will not only be transformational for the American economy, ensuring that it works for working-class Americans but it also provides the largest one-time investment in border security in American history."

According to details of the bill, typical families could receive up to $10,900 more in take-home pay. Workers might see wage increases up to $7,200. Families earning under $100,000 are expected to get a 12 percent tax cut compared to current rates.

The bill is projected to protect or create up to 7.2 million jobs annually through small businesses. Specific provisions include no taxes on tips and overtime pay which would increase annual earnings by $1,300 for tipped workers and $1,400 for hourly workers.

Additionally, it enhances existing credits like the Child Tax Credit which will rise to $2,200 benefiting over 40 million families. The Standard Deduction is increased to $31,500 for families.

Education savings accounts are expanded under this bill allowing more flexibility for K-12 materials or postsecondary trades credentials. Child care credits are broadened along with paid leave tax credits becoming permanent.

In health care reform efforts within this bill include expanding health savings accounts while addressing fraud within Obamacare and blocking taxpayer-funded benefits for illegal immigrants.

New initiatives like Trump savings accounts aim at building financial security starting at birth.