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The winners (and losers) in Trump's 'big beautiful' tax bill—now law


President Donald Trump’s One Big Beautiful Bill Act, which will transform taxes and other federal policies, is indeed big: 887 pages in the final Senate version that the House passed on July 3. How attractive it is to you depends largely on how big your paycheck will be in 2026.

The general themes haven't changed as the bill has traveled through Congress: Americans won't face bigger tax bills next year, and a portion of the deficit spending will be offset with cuts in health and food assistance programs, affecting the finances of lower-income Americans.

Trump signed the bill into law at July 4 a White House ceremony.

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The winners and losers in the 'big beautiful bill'
These are the potential winners and losers from the tax bill, which President Donald Trump has dubbed the 'big beautiful bill'.

What's in the 'Big Beautiful Bill'

The plan makes permanent the 2017 tax cuts from Trump’s first term. It reduces some taxes, but raises others, and changes spending amounts. Paste BN looked for winners and losers when the bill becomes law. Here are examples of what we found.

High-income households would benefit most

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Top 5 winners

High-income earners

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The bill “would cut taxes on average by about $2,800 in 2026,” according to an analysis by the nonpartisan Tax Policy Center. More than two-thirds of the total cuts would go to those with annual incomes of about $217,000 or more, the center said. Those with incomes of $1.1 million or more would get nearly a fourth of the cuts.

Families with children

The bill increases the maximum child tax credit by $200 to $2,200. The permanent credit would adjust for inflation. Some children may become ineligible under a new requirement that at least one parent have a Social Security number.

Children younger than 8 would be given $1,000 each for their parents—at least one who is a U.S. citizen—to open "Trump accounts," which are similar to individual retirement accounts. Annual contributions are capped at $5,000, and the savings can be used after the child turns 18.

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Car buyers

From 2025 through 2028, the bill allows people to deduct up to $10,000 annually in car loan interest payments if they buy an American-made vehicle. The tax credit phases out between $100,000 and $150,000 and between $200,000 and $250,000 if you file jointly. It's not available for fleet purchases, commercial vehicles or leasing.

Those with overtime pay

A portion of overtime wages, which are treated like regular wages with federal and state income taxes, Social Security and Medicare withholding, will not be taxed. The first $12,500 of extra overtime pay will be tax-deductible through 2028 with $150,000 income limit ($300,000 if filing jointly).

Waiters and workers who get tips

The first $25,000 of tips will not be taxed through 2028—with a $150,000 income limit ($300,000 if you file jointly). Tips are historically underreported, according to the IRS. Unreported tip income from noncompliant businesses could be as high as $23 billion, according to a report from the Treasury Inspector General for Tax Administration in 2018.

Top 5 losers

Those making less than $50,000

Americans making about $17,000 to $51,000 would lose about $700. Those with an income of less than $17,000 would lose more than $1,000 on average. The losses are mainly a result of cuts in assistance programs including Medicaid, health insurance marketplaces, the Supplemental Nutritional Assistance Program and student loans.

SNAP/Medicaid recipients

The bill's changes to Medicaid could result in as many as 7.6 million Americans losing health insurance over the next 10 years, according to initial estimates by the CBO. Nearly $1 trillion could be cut from the program spending by 2034.

The measure cuts $267 billion in federal spending for Supplemental Nutrition Assistance Program, known as SNAP or food stamps, CBO said. It would also impose work requirements on those age 55 to 64 who benefit from the program, which provides food assistance to about 42 million Americans.

People with student loan debt

Student loan plans such as SAVE enacted by President Joe Biden's administration will be phased out, and the number of repayment plans for federally held loans would shrink to just two programs. The bill would also impose significant caps on loans for parents and undergraduate students. The bill does create a new Pell Grants for workplace training programs.

Higher federal deficit

The bill's provisions are projected to increase the federal deficit by $3.8 trillion from 2026 to 2034, according to the CBO, which cited tax changes, including the extension of the 2017 tax act and its revenue and outlays for refundable credits.

Undocumented people

Besides multiple provisions limiting access to financial, health and food benefits, the bill would increase fees for legal immigration. It would impose a $100 fee on requests for asylum and require $550 payments for work authorizations. It would charge immigrants hundreds of dollars if they appeal court decisions, among other fees.

CONTRIBUTING Riley Beggins, Bailey Schulz, Lauren Villagran Zachary Schermele, Chris Quintana and Dan Morrison

SOURCE Paste BN Network reporting and research; Reuters; Tax Policy Center; Penn Wharton at the University of Pennsylvania; Center on Budget and Policy Priorities; Congressional Budget Office

(This story was updated to include video.)