WE ARE 100% INDEPENDENT AND READER-FUNDED. FOR A GUARANTEED AD-FREE EXPERIENCE AND TO SUPPORT REAL NEWS, PLEASE SIGN UP HERE, TODAY.
PULSE POINTS
❓WHAT HAPPENED: President Donald J. Trump’s One Big Beautiful Bill Act (OBBBA) will save Americans an average of nearly $4,000 in tax cuts.
👤WHO WAS INVOLVED: President Donald J. Trump, Congress, the Tax Foundation.
📍WHEN & WHERE: The Tax Foundation released statistics on the OBBBA on August 13.
💬KEY QUOTE: “The OBBBA not only prevents a major tax increase for most filers but introduces new relief aimed at working households.” – Erica York, senior economist at the Tax Foundation
🎯IMPACT: The OBBBA will save Americans thousands of dollars per year, likely boosting spending and stimulating the economy.
IN FULL
The One Big Beautiful Bill Act (OBBBA), signed into law by President Donald J. Trump in July, will reduce federal taxes for individual filers by an average of $3,752 in 2026, according to new estimates from the Tax Foundation. The legislation marks the most significant update to federal tax policy since the 2017 Tax Cuts and Jobs Act (TCJA), which the America First leader also pioneered.
The OBBBA permanently extends the individual tax cuts first enacted under the TCJA, previously scheduled to expire at the end of 2025. Without this extension, roughly 62 percent of taxpayers would have seen their taxes increase starting in 2026. The law also introduces new tax breaks for individuals and businesses, including deductions for tips and overtime income, a larger standard deduction, and an expanded Child Tax Credit.
“The OBBBA not only prevents a major tax increase for most filers but introduces new relief aimed at working households,” said Erica York, senior economist at the Tax Foundation.
It also maintains 100 percent bonus depreciation for businesses and allows continued full expensing for domestic research and development (R&D) costs. Previously, these changes were slated to be phased out or reduced.
The Tax Foundation projects that the law will support the creation of around 938,000 full-time equivalent jobs over the long term.
Join Pulse+ to comment below, and receive exclusive e-mail analyses.
show less
