The big beautiful bill has officially passed. After many weeks of deliberation in Congress, a final draft was sent to the president for approval on July 3rd. President Trump signed the bill into law on July 4th, 2025, our Independence Day. How patriotic. The big beautiful bill is the largest and most significant piece of tax legislation since the Tax Cuts and Jobs Act of 2017. It will have a strong impact on taxes for the vast majority of American citizens. So today, I'm going to walk you through all of the key provisions of this bill so that you will know how it will impact you and what moves to make to optimize your tax approach in the Big Beautiful era. So without further ado, let's dive in. [Music] All right, guys. So the Big Beautiful Bill, which is officially titled the One Big Beautiful Bill Act, is a comprehensive legislation pushed by Republicans to advance President Donald Trump's agenda. It combines tax cuts, spending reductions, border security, and energy policy changes. But key provisions of the Big Beautiful bill will be outlined next. Let's start with the tax provisions. A permanent extension of the Tax Cuts and Jobs Act was enacted. The bill makes the 2017 TCJA Individual Income Tax Cuts permanent. These tax cuts were set to expire at the end of 2025, and now they won't. Here is what the tax brackets looked like before the TCJA and here's what they look like now. So, for example, if you're currently in the 12% tax bracket, you will not be jumping back up into the 15% tax bracket. If you're currently in the 37% bracket, you will not be jumping back up into the 39.6% bracket. The extension of the income tax cuts from the TCJA will save millions of people thousands of dollars every single year in taxes or more. Now, what about no taxes on tips and overtime? The bill provided a temporary above the line deduction for tips up to $25,000 and overtime pay up to $12,500 for single filers or $25,000 for joint filers. These changes apply to workers with incomes below $150,000 if you're single or $300,000 for joint filers. These deductions phase out above these thresholds and they expire in 2028. Let's move to the auto loan interest deduction. The big beautiful bill allows a temporary deduction of up to $10,000 for interest on loans for United States assembled vehicles, but this will be phasing out for incomes above $100,000 for single filers or $200,000 for joint filers. This rule is effective from 2025 all the way until 2028. So, if you'll be financing the purchase of a US-made car in the next few years, then this provision of the big beautiful bill could help you tremendously. Let's talk about the salt deduction adjustments. This one I'm very happy about. The bill increased the state and local tax deduction cap from 10,000 to 40,000 for taxpayers with incomes below half a million. The deduction phases down for people with income exceeding half a million, but it never falls below $10,000. In 2030, the salt deduction cap will revert back to $10,000 unless the new changes are extended. Next, we'll talk about the child tax credit or CTC. The bill permanently extends the $2,000 per child credit, which was scheduled to drop back down to $1,000 at the end of 25. In fact, the One Big Beautiful Bill Act actually increases this credit to $2,200, and it makes it inflation adjusted. Plus, it requires at least one parent to have a social security number for eligibility. Also, it phases out for single filers making over $200,000 or for joint filers making over $400,000. So, keep that in mind. Next thing we'll talk about is the updates to the standard deduction. The legislation permanently extends the Tax Cuts and Jobs Act increase standard deduction. The massive increase to the standard deductions that were added in 2017 were set to expire at the end of 2025. Now, however, the increases have been made permanently and they have been raised even more. The standard deduction for single filers for 2025 is now $15,750. And for joint filers, it is now $31,500. So, under the big beautiful bill, these amounts will continue to be adjusted for inflation instead of dropping down to their pre207 levels. What about deductions for seniors? This legislation introduces an additional $6,000 deduction for individuals aged 65 and older with incomes below $75,000. For joint filers, the additional deduction amount is 12,000 and the income threshold is $150,000. The deduction phases out above these income thresholds. This provision is effective from 2025 to 2028. So, if you're a senior citizen, you might be able to benefit from an additional tax deduction depending on your income level. The next one I want to talk about is Trump accounts. The Big Beautiful Bill establishes Trump Accounts, a children's saving program in which the government will provide a $1,000 Treasury deposit for kids born between 2025 and 2028. These tax deferred accounts will be managed by the parents. The funds in the account will be invested in index funds. Up to $5,000 in annual contributions can be made to those accounts by the parents and they're available to the US citizens children without income restrictions. This is amazing. These accounts are designed to promote long-term wealth building. Funds are accessible after the child turns 18 for qualified expenses such as education, purchasing a home, or starting a small business. Automatic enrollment occurs at birth, similar to the social security number registration. What about the withdrawals? Withdrawals from non-qualified purposes before age 30 are subject to a 10% penalty and are taxed at ordinary income rates, while qualified withdrawals are taxed at long-term capital gains rates. So, you can see here the differences. Let's talk about some of the updates to estate taxes. The bill also permanently increased the estate tax exemption to 15 million, and this amount will be indexed for inflation from 2026 onward. This change significantly reduces the number of estates subject to federal estate taxes. The increased exemption allows for greater tax-free transfer of wealth to heirs with the inflation adjustment ensuring the threshold keeps pace with economic changes over time. Now it is time for us to talk about the repeal of clean energy credits. The bill eliminates hundreds of billions of dollars in inflation reduction act clean energy tax credits such as those for home energy efficiency, wind, solar, and more after 2025. This includes getting rid of the $7,500 electric vehicle tax credit that was extremely popular amongst electric vehicle enthusiasts and manufacturers. This tax credit will expire on September 30th, 2025. So, if you are thinking of buying an electric vehicle to take advantage of this tax credit, you might want to do so sooner rather than later. The bill also does away with the residential clean energy credit. The residential clean energy home improvement credit is something that you are able to take a tax credit on for putting clean energy inside of your home or stalling solar on your roof. Many more of these deductions will vanish. Now, let's talk about business tax incentives. Bonus depreciation, one that we rarely talk about on this channel. Psych. We talk about it every single day. The legislation permanently restores 100% bonus depreciation for qualifying property placed in service after January 19th, 2025. The property must have a recovery period of 20 years or less. This is absolutely huge because it means you'll be able to fully write off your costs for qualifying business property in year 1. We love that. Qualifying property includes machinery, equipment, vehicles, certain improvements to real property, and more. The provision reverses the TCJA phase down which had set bonus depreciation at 40% in 2025 and 20% in 2026 and 0% in 2027. So if you're a business owner like I am, you'll now be able to get massive year 1 write- offs for eligible business property and you should be happy about that. Let's talk about research and development. The big beautiful bill also allows immediate expensing of domestic research and development expenses. So, if you own a business and you need to invest in research and development to create a new product or service, then you'll be able to write these expenses off in the year you incur them. This will make it significantly easier for businesses to invest in R&D and one that I want to see more business owners doing. Let's talk a little bit about the QBI deduction. If you're new to my channel, you probably don't know about this. If you've been on my channel, we've broughten up the QBI deduction a million of times. There was a permanent extension of the qualified business income or QBI deduction in the bill. The QBI deduction grants eligible business owners an immediate deduction of 20%. To qualify for this deduction, your business must be a pass through entity such as a sole proprietorship, an LLC, partnership LLC, or an S corporation. Certain trusts and estates can also qualify. This deduction was set to expire at the end of 2025. We would no longer have it. However, the big beautiful bill makes this deduction permanent. This means that if you're a business owner, you might be able to use this deduction to save a lot of money in taxes well beyond 2025, and you should be happy about that. Let's talk about section 179. You've seen people writing off cars that weigh over 6,000 lb. The big beautiful bill increases the maximum amount a taxpayer can expense under section 179 to $2.5 million. This applies to qualifying property placed in service after December 31st, 2024. The phase out threshold was also raised to $4 million. All right, let's talk about some other provisions. Medicaid cuts. This legislation imposed roughly 1 trillion in spending cuts to Medicaid and the children's health insurance program over the next decade. Ouch. It achieves this through stricter eligibility requirements and other means. The spending cuts to Medicaid will help to offset the lost tax revenue from the tax cuts in the one big beautiful bill act. What about SNAP reforms? Not sure if you guys have heard of this one. The legislation reforms the supplemental nutrition assistant program or SNAP. It requires states to cover a certain percentage of SNAP benefit costs depending on payment error rates. The higher the payment error rate, the more that the state has to pay. States will now also have to fund 75% of administrative cost. The bill also imposes work requirements of 80 hours per month for able-bodied adults under 65 to start to receive these SNAP benefits. And these reforms result in savings of up to a h 100red billion over the next decade. All right, let's go into border security. The legislation allocates tens of billions of dollars of additional funding for border security. This includes 46.5 billion for border wall construction and funds to hire 10,000 additional immigration and custom enforcement agents. The funds will also go towards the development of detention facilities as well as deportation operations. Next, we'll talk about energy policy. The legislation revises a lot of energy policy. For example, it repeals methane taxes introduced during the Biden administration. It unlocks oil and gas development on federal lands and invests in aviation fuel production. It also introduces a tax incentive to support coal production. Pretty interesting. Now, let's talk about the military. We have some military spending to go over. The legislation increases military spending by over a hundred billion, including 25 billion for the development of a Golden Dome missile defense system. 29 billion will go towards ship building and 15 billion will go towards nuclear deterrence. What about aviation? What about infrastructure? The legislation provides 12.5 billion to modernize Federal Aviation Administration air traffic systems. This investment aims to improve aviation infrastructure. Next, we'll talk about the debt sealing increase. The One Big Beautiful Bill Act increases the debt ceiling by 5 trillion, which is higher than the four trillion increase initially proposed. Whoa. This adjustment allows the United States government to borrow more to cover programs already approved by Congress. This addresses the need to avoid potential defaults as warned by Treasury Secretary Scott Besset, who urged action by mid July 2025. Now, let's talk about deficit increases. The Congressional Budget Office estimates the bill adds around three to four trillion to the deficit over 10 years with tax cuts reducing revenue by 4.4 to5 trillion. The deficit increase will be partially offset by spending cuts and revenue raises like tariffs. But what about economic projections? You see, the Tax Foundation estimates a 1.2% long-term GDP increase, which is about 938,000 new jobs and about4% higher wages. What about the current sentiment and challenges that we're seeing? The White House, the National Federation of Independent Business, Job Creators Network, and Airlines for America support the bill for its economic and security benefits, but Democrats led by House Minority Leader Hakee Jeff criticized it as a regressive tax scam due to Medicaid and SNAP cuts. So, what was left out of this bill? The most noticeable items that was left out of this bill was the elimination of taxes on social security income. This was something that Trump promised, but the bill did not deliver on. I was pretty pissed off about that. However, keep in mind that, as I mentioned earlier, the bill did include an additional $6,000 deduction for seniors. So, there is still some tax relief for seniors in this bill. The big beautiful bill also did not modify the existing corporate tax rates of 21% that was established in the TCJA. The proposals to lower the tax rates to 15% were discussed, but it did not make it into the final version of the bill. The bill did deliver a large percentage of other tax provisions that President Trump promised while he was in the campaign trail. So, it appears that Trump and the Republicans who supported him got most of what they asked for, the key tax changes that they wanted implemented. Now, I want to know what you guys think about the One Big Beautiful Bill Act. Do you like all of these changes? Do you think this bill will put our country in a better position or a worse position? What do you think of the extension of the TCJA, the tax cuts? What do you think of the auto loan interest deduction? What do you think of the repeal of the clean energy credits? I want you to share your thoughts in the comments below. And before I wrap up the video, I also want to take the time to remind every single one of you that my 5-day taxfree wealth challenge is taking place August 4th through August 8th. This event is specifically designed for high income earners. I'll be revealing highly advanced tax strategies that could help you cut your tax bill by 50 all the way up to 100% legally and effectively. So, if you are a business owner earning over $300,000 a year or your W2 making over $300,000 a year, then this event is for you. I'll be explaining the exact methods that you can use to reduce your tax bill by 50 to 100% with the new rules included in the big beautiful bill. If you're interested, go ahead and sign up by clicking the link in the description below. But that's all I got for today's video. Don't forget to like, comment, subscribe. Let me know if you like this in the comments below. And I look forward to seeing you on the next one. Cheers.