House Passes "One Big Beautiful Bill" with Major Tax Changes

On May 22, the House passed H.R. 1, dubbed the "One Big Beautiful Bill", which proposes sweeping tax reforms, including the extension of several 2017 Tax Cuts and Jobs Act (TCJA) provisions.

Key elements include retaining the higher standard deduction, capping the SALT deduction at $10,000, and enhancing the Child Tax Credit.

Analysts estimate the bill could reduce federal taxes for millions of middle-class families and small businesses, although critics warn it may add over $3 trillion to the national debt.

The bill now heads to the Senate, where partisan divides could lead to revisions or delays.

Still, its passage signals continued political interest in shaping the post-pandemic tax landscape.

If enacted in its current form, Americans will see changes on their 2025 returns, potentially affecting withholdings, deductions, and overall liability.

The bill also includes incentives for retirement savings, childcare, and homeownership, making it a major legislative package with wide-ranging implications.