What’s Inside the “One, Big, Beautiful Bill”: A Preliminary Overview

Introduction

Many of our clients frequently read, listen to, or watch the news. While there is surely no shortage of hot topics, one piece of significant legislation is working its way through the U.S. Congress that we are closely following—the so-called “One, Big, Beautiful Bill”. The proposed bill is a sweeping legislative package that proposes extensive changes to the U.S. tax code, health care policies, energy credits, and social benefit programs. Championed as a continuation and expansion of the 2017 Tax Cuts and Jobs Act, this new bill outlines a broad vision aimed at economic growth, tax relief, and program reform. At more than 1,100 pages, it touches nearly every corner of federal fiscal policy. Below is a high-level overview of what the current version includes.

Note: The legislation summarized in this post is the initial version of the "One, Big, Beautiful Bill" that recently cleared the House Budget Committee. It has not yet passed the full House or Senate and is subject to amendment, revision, or removal of provisions. The final legislation may vary significantly from the current House version.

Key Components of the Bill

📉 Permanent and Expanded Tax Cuts

• Individual Income Tax: Makes the 2017 lower tax brackets permanent and adds new inflation adjustments.
• Standard Deduction: Nearly doubles the standard deduction again for 2026 with temporary additional boosts through 2028.
• Child Tax Credit: Preserves the expanded $2,000 per-child credit permanently and increases it to $2,500 temporarily.
• Qualified Business Income Deduction: Permanently raises the deduction from 20% to 23% and modifies income thresholds to avoid high marginal tax spikes.
• Estate and Gift Tax: Increases the lifetime exemption to $15 million per person, indexed for inflation.

💼 Targeted New Tax Breaks

• Above-the-line deductions for:
  • Tips
  • Overtime pay
  • Car loan interest (up to $10,000)
  • Senior deduction ($4,000 for low- to mid-income seniors)

🍼 Money Accounts for Growth and Advancement (MAGA) Accounts

A new savings vehicle for children:

• $5,000/year contribution limit
• Government-funded $1,000 deposit for newborns (2024–2028)
• Funds accessible at age 18 for education, home purchase, or business creation

🩺 Health Savings and Flexibility

• Expands Health Savings Account (HSA) eligibility, even for seniors on Medicare
• Permits contributions and reimbursements from flexible arrangements like HRAs and FSAs
• Includes wellness-related expenses like gym memberships and direct primary care

🏘️ Support for Rural America and Small Business

• 100% immediate expensing for equipment and factories through 2029
• Enhanced tax credits for small businesses offering childcare
• New round of Opportunity Zones, emphasizing rural designations

🌿 Rollback of Clean Energy Incentives

The bill proposes a phased repeal or acceleration of sunset dates for:

• Electric vehicle tax credits
• Residential clean energy and efficiency improvements
• Credits for clean electricity production and hydrogen

New restrictions would also limit eligibility for energy credits to companies not linked to “prohibited foreign entities.”

🚧 Immigration and Taxpayer Eligibility Provisions

• ACA premium tax credits and Medicare eligibility would be limited to citizens and permanent residents
• A 5% excise tax would be applied to international remittance transfers unless the sender is a verified U.S. citizen

🛠️ Fraud Prevention and Program Integrity

• Strengthened verification for premium tax credit eligibility
• Stricter enforcement for Earned Income Tax Credit (EITC) duplication
• Investment in AI tools to detect Medicare fraud
• Sunset of the IRS’s Direct File program in favor of a public-private partnership

🧮 Budget Impact and Controversies

• While the bill offers broad tax relief and simplification, it’s projected to add $2.5–$5.8 trillion to the national debt over the next decade.
• The repeal of climate incentives and expansion of tax breaks without offsetting revenue is drawing criticism from fiscal conservatives and environmental advocates alike.
• Strict eligibility and verification rules for many credits aim to reduce fraud but may exclude vulnerable populations.

A Work-in-Progress

As with all major legislation, this bill will likely evolve in the weeks and months ahead. It still requires approval by the full House of Representatives and then the Senate—each of which may revise, expand, or remove significant sections. Key areas of potential debate include the bill’s projected cost, its changes to energy policy, and implications for federal revenue.

Final Thoughts

The “One, Big, Beautiful Bill” represents a substantial effort to reshape multiple layers of tax, healthcare, energy, and welfare policy. While it includes a number of family- and business-friendly provisions, it also proposes sweeping changes to existing tax credits and social programs. As the legislative process continues, we’ll monitor revisions and provide updates as needed.

We encourage readers to treat this summary as an early-stage snapshot, not a final roadmap. Regardless of where one stands politically, staying informed about major legislative proposals is an important step toward thoughtful financial planning and civic engagement.

Disclosure: The information provided in this blog post is for educational and informational purposes only and should not be construed as financial advice. While we strive to present accurate and up-to-date information, the financial, tax, and legal landscape is subject to change, and individual circumstances vary. Readers are encouraged to consult with a qualified financial advisor or professional before making any financial decisions or implementing strategies discussed in this post. Our firm does not guarantee the accuracy, completeness, or suitability of the information provided, and we disclaim any liability for any direct or indirect damages arising from the use of this information. Past performance is not indicative of future results. Any investment involves risk, and individuals should carefully consider their financial situation and risk tolerance before making any investment decisions.