AMERICANS TO SEE $3,752 AVERAGE TAX CUT UNDER ONE BIG BEAUTIFUL BILL

The One Big Beautiful Bill Act (OBBBA), signed into law by President Donald Trump on July 4, 2025, will deliver an average tax cut of $3,752 to American taxpayers in 2026, according to the nonpartisan Tax Foundation. Described as the largest middle-class tax relief in history, the legislation builds on the 2017 Tax Cuts and Jobs Act (TCJA), extending key provisions and introducing new benefits to boost economic growth and support families and small businesses.

The OBBBA makes permanent several TCJA measures, including lower tax rates, a $15,000 standard deduction, a $2,000 Child Tax Credit, a 20% Qualified Business Income deduction for small businesses, and a $750,000 cap on home mortgage interest deductions. New provisions include tax breaks for tips and overtime pay, with the Child Tax Credit increasing to $2,200 in 2025 and adjusting for inflation in 2026. The State and Local Tax (SALT) deduction cap will rise to $40,000 in 2025 but revert to $10,000 by 2030 for high earners.

Taxpayers in all 50 states will see reduced federal taxes, though benefits vary. Wyoming, Washington, and Massachusetts residents are projected to receive the largest cuts, averaging $5,100, while West Virginia and Mississippi taxpayers will see smaller reductions, around $2,400. Mountain resort towns will benefit most locally, while rural counties will see the least. 

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The Tax Foundation estimates the OBBBA will create 938,000 full-time jobs, fueling economic activity nationwide.However, some provisions, like deductions for tips and overtime, are temporary and will expire by 2030, reducing the average tax cut to $2,505. By 2035, inflation will increase the nominal value of permanent cuts to $3,301. Critics highlight the bill’s fiscal cost, including a $2.4 trillion addition to the national debt and a $5 trillion debt ceiling increase, raising concerns about long-term economic stability.

White House Deputy Press Secretary Anna Kelly praised the OBBBA, stating, “President Trump’s bill delivers historic tax relief, lower inflation, and massive investments, launching a Golden Age for the Trump Economy.” Supporters emphasize benefits like a $1,300 boost for tipped workers and tax-free overtime for linemen aiding disaster recovery. Republicans also note the bill prevents a $4 trillion tax hike that would have occurred if the TCJA expired.The OBBBA is projected to drive significant economic growth, with the President’s Council of Economic Advisers estimating up to 5.2% higher GDP and 7.4 million jobs over four years. 

While the tax cuts offer immediate relief and stimulate the economy, debates persist over their fiscal impact as the nation navigates a transformative economic future.