One Year After Trump Signs Tax Bill, Effects on Households and Programs Emerge

President Trump signed the One Big Beautiful Bill Act on July 4, 2025. One year later the law's tax reductions and spending changes are producing measurable effects on households, businesses and federal programs, CBS News reported. The legislation extended provisions of the 2017 Tax Cuts and Jobs Act that were set to expire.

It permanently kept the top individual income-tax rate at 37 percent for individuals earning over $640,000 and married couples earning at least $768,000. The measure also raised the state-and-local-tax deduction cap from $10,000 to $40,000 per year. Corporations gained from restored 100 percent bonus depreciation and immediate deductibility of domestic research-and-development expenses.

Amazon, Alphabet, Meta and Tesla together received $51 billion in tax breaks in 2025, much of it from the new law, according to Jon Whiten of the Institute on Taxation and Economic Policy. Tipped workers and those earning overtime benefited from new deductions.

About 7 million workers claimed the tips deduction with a typical amount of $7,000, while 28 million claimed the overtime deduction averaging $3,100, the House Ways and Means Committee reported.

Seniors over age 65 received a $6,000 bonus deduction subject to phase-outs above $75,000 for single filers. The law created Trump Accounts that provide a $1,000 Treasury deposit for eligible newborns born through 2028. Treasury Secretary Scott Bessent said more than 6 million Americans have opened such accounts.

On the spending side, the act imposed new SNAP work requirements on able-bodied adults aged 18 to 64. Participation fell by more than 4 million people, or 10 percent, between July 2025 and March 2026. Federal tax incentives for electric vehicles ended, and EV sales in 2026 are down 22 percent from the prior year, Cox Automotive data showed.