House Republicans have unveiled the full text of President Trump’s much-anticipated tax and economic reform package, titled “The One, Big, Beautiful Bill.” Led by House Ways and Means Committee Chairman Jason Smith (R-MO), the proposal builds on the 2017 Tax Cuts and Jobs Act (TCJA) and is designed to lock in permanent tax cuts for American workers, raise wages, and reinvigorate U.S. economic strength through a series of pro-growth, America-first reforms.
The legislation centers around three core priorities: safeguarding American workers, accelerating economic growth, and holding powerful elites accountable. Key provisions include scrapping taxes on tipped income and reversing what Republicans describe as corporate giveaways embedded in President Biden’s Inflation Reduction Act. The package adopts a direct, worker-first approach aimed at benefiting American families.
At its core, the bill introduces sweeping tax relief measures for workers. It eliminates income taxes on tips, directly supporting roughly 4 million employees in the hospitality and service sectors. Additionally, it removes taxes on overtime pay, benefiting more than 80 million hourly workers nationwide.
For families, the proposal includes a full deduction for auto loan interest on American-made vehicles—a potentially major financial win for working-class households. It also offers an extra $4,000 deduction to middle- and lower-income seniors, providing needed relief amid ongoing inflation.
The legislation makes permanent several key provisions from the TCJA, including the doubled standard deduction and reduced tax rates. Without an extension, the average working family could face a $1,700 tax increase, according to the House Committee on Ways and Means.
The bill boosts the Child Tax Credit by $500, bringing the total to $2,500 per child, which supporters say will help families combat rising living costs. According to estimates from the Council of Economic Advisers (CEA), the reforms would increase annual real wages by $2,100 to $3,300 per worker and lift median household take-home pay by $4,000 to $5,000.
Supporters argue the bill is crucial to preventing a looming employment crisis. The National Association of Manufacturers warns that allowing the TCJA to expire could cost the economy up to 6 million jobs, including over 1 million in manufacturing alone.
Industry-specific projections highlight the bill’s potential impact: saving an estimated 719,000 jobs in retail, 658,000 in food services, 634,000 in healthcare, 584,000 in science and tech, and many more across construction, waste services, and finance.
Beyond individual tax relief, the legislation contains robust incentives to drive investment and economic expansion. It restores full, immediate expensing for business investments and research and development, and permanently enshrines the 23% Small Business Deduction. CEA projections suggest these measures could lift business investment by 4.2% to 6.6% and raise long-term real GDP by up to 1.5%.
The bill also expands Opportunity Zones, a signature element of the 2017 tax law, aiming to attract $100 billion in private investment to struggling communities. Early indicators show these zones have nearly doubled housing development and boosted employment in low-income areas by up to 4.5 percentage points compared to similar areas.
In contrast to the Inflation Reduction Act, which Republicans have criticized as “green corporate welfare,” the bill repeals more than $500 billion in subsidies for electric vehicles, solar energy, and luxury housing developers. It also ends tax breaks for professional sports team owners, cracks down on left-leaning nonprofits exploiting tax exemptions, and applies the corporate tax rate to large university endowments.
Finally, the legislation targets foreign abuse of U.S. tax systems by eliminating benefits for undocumented immigrants, closing Medicare loopholes, and combating fraudulent Obamacare claims.
