The One Big Beautiful Bill Act is 1 year old. Here are the winners and losers.
The One Big Beautiful Bill Act Marks One Year: Winners and Losers Emerge
The One Big Beautiful Bill Act is - A year has passed since President Trump enacted the "One Big Beautiful Bill Act," a significant piece of legislation reshaping tax policies and federal spending. As its effects unfold, the bill’s outcomes for various groups are becoming clearer. While it provided tax relief to millions, it also made strategic cuts to programs supporting low-income Americans.
White House Perspective on the Law
White House spokesperson Kush Patel emphasized that the law serves dual purposes: offering immediate economic support and fostering long-term growth. “President Trump’s Working Families Tax Cut is delivering short-term relief while setting the stage for sustained economic progress,” Patel noted in an email to CBS News. He highlighted provisions like full equipment expensing and a 20% permanent tax deduction for small businesses, which he claimed would drive investment and job creation.
“The benefits extend beyond one-time refunds, with other elements fueling long-term investment that will raise wages and create opportunities,” Patel added.
Partisan Views on the Legislation
Republican lawmakers praised the OBBBA for its focus on tax relief for middle-class families and its efforts to streamline federal programs. They argued that the bill reduces inefficiencies and supports economic growth. In contrast, Democrats criticized it for prioritizing cuts to aid programs like Medicaid and food stamps, which they say disproportionately affect the most vulnerable populations.
Andrew Lautz of the Bipartisan Policy Center acknowledged the duality of the law’s impact. “Both perspectives can be valid,” he said. “Many tax cuts are targeted at middle-class taxpayers, while other provisions primarily benefit the wealthy.”
Immediate Impacts of the OBBBA
Although some major provisions—such as new Medicaid work rules and changes to student loan policies—will take effect later in 2026 or 2027, the law’s early effects are already visible. The analysis here focuses on the measures that began influencing households, businesses, and federal programs immediately.
High-Income Households: A Major Beneficiary
One of the OBBBA’s most notable advantages was extending provisions from the 2017 Tax Cuts and Jobs Act. Without this, those tax cuts would have expired at the end of 2025, increasing taxes for many families. High earners, however, gained from the law’s decision to permanently keep the top individual tax rate at 37%, instead of raising it to 39.6%. This primarily impacts the top 2% of U.S. taxpayers, including those with incomes exceeding $640,000 or married couples earning over $768,000 annually.
“The top 1% are set to receive $1 trillion in tax cuts over a decade,” said Jon Whiten of the Institute on Taxation and Economic Policy (ITEP).
Corporations: Major Winners of the Law
The OBBBA delivered substantial benefits to businesses, including making 100% bonus depreciation for short-lived assets permanent. This allows companies to deduct full costs of investments immediately, reducing their taxable income. Additionally, the law made domestic research and development expenses fully deductible, further lowering corporate tax burdens.
“The bill includes a range of special incentives that drastically reduced tax liabilities for profitable firms,” Whiten stated. “For example, Amazon, Alphabet, Meta, and Tesla collectively received $51 billion in tax breaks in 2025, largely from this legislation.”
Tipped and Overtime Workers: Gaining Financial Relief
The bill’s “no tax on tips” provision aimed to boost earnings for workers in service industries, such as waiters and hairdressers. Similarly, the “no tax on overtime” clause supported employees who rely on additional pay. According to the House Ways and Means Committee, 7 million workers utilized the tip deduction, while 28 million claimed the overtime benefit. The average savings for tips was $7,000, and for overtime, it was $3,100 in the latest tax year.
These measures, part of Trump’s signature provisions, have given tens of millions of working-class Americans more disposable income, as noted by Patel.