Republicans tout tax relief and economic incentives in the new bill, but critics warn of long-term trade-offs.**

Republican leaders celebrated a legislative milestone Thursday morning as the House passed a sweeping budget proposal worth several trillion dollars. The measure, dubbed the “One Big Beautiful Bill Act,” aligns with President Donald Trump’s key policy priorities, including extended tax cuts, expanded border security funding, and new energy investments.

However, despite the fanfare, the bill is not yet law—and it faces significant hurdles in the Senate and with public scrutiny.

Still, supporters of the bill are emphasizing what they say are immediate gains for middle- and lower-income Americans. Here’s what the proposed legislation includes—and what it could mean for everyday families.

What the Lower and Middle-Class Stands to Gain

The bill aims to build on the 2017 tax overhaul with several new provisions designed to extend relief to middle-income earners, at least temporarily.

Permanent Extension of 2017 Tax Cuts

Preserves the $15,000 standard deduction, $2,000 child tax credit, and 20% Qualified Business Income (QBI) deduction.

Boosted Deductions (2025–2028)

+$1,000 for single filers

+$2,000 for joint filers

QBI deduction increases to 23%

Child tax credit increases by $500

Tax-Free Tips and Overtime

Tips and overtime income will no longer be subject to federal income tax—offering a boost to hospitality, service, and gig sector workers.

Higher SALT Deduction Cap

Raises the state and local tax deduction cap from $10,000 to $40,000 for households earning up to $500,000—especially beneficial in high-tax states.

Support for Seniors and Families

$4,000 additional deduction for seniors

Partial refundability** of the adoption tax credit

Zero-interest loans - for U.S.-made cars

While the bill offers notable short-term tax relief, most provisions expire after 2028 unless reauthorized. Critics are also sounding alarms over deep cuts to Medicaid, SNAP, and clean energy programs, which could have indirect but significant impacts on middle-income and vulnerable families.