The House of Representatives passed the “Big Beautiful Bill Act,” a tax plan backed by President Trump. The bill includes tax cuts on tips and overtime, but does not eliminate taxes on Social Security benefits as promised during the campaign. Instead, the bill offers a temporary enhanced deduction of $4,000 for seniors aged 65 and above, subject to income limitations.
The bill also includes provisions such as exempting tips from tax, exempting overtime from tax, and increasing the child tax credit. President Trump celebrated the bill’s passage, urging quick action in a statement. He highlighted the tax cuts, border security measures, pay raises for ICE and Border Patrol agents, and funding for “TRUMP Savings Accounts” for newborn babies.
The bill now heads to the Senate, where it may undergo amendments before being voted on again. Any changes could lead to further negotiations between the two chambers before the President can sign it into law. Ways and Means Chairman Jason Smith (MO-08) called the bill a major milestone in delivering lasting tax relief.
House passes Trump-backed tax plan
He stated that families could gain over $13,000 in take-home pay, and workers could see wage increases of more than $11,000. The bill is expected to secure more than 7 million jobs in the next four years.
The legislation makes the 2017 Trump tax cuts permanent and includes additional pro-growth policies. It aims to support families, workers, farmers, and small businesses through various measures, including expanding the Child Tax Credit, preserving the doubled standard deduction, and increasing access to child care. Texas Democrats have criticized the bill’s cuts to Medicaid spending and work requirements. Rep.
Sylvia Garcia called the measures “bureaucratic red tape meant to disqualify people,” while Rep. Al Green stated that the harm done by the cuts will be permanent. The bill also includes $12 billion to reimburse states like Texas for their efforts to secure the border during the Biden administration. Gov.
Abbott had requested over $11 billion in reimbursements earlier this year.