The One Big Beautiful Bill

Big, Beautiful Bill: What the New 2025 Tax Law Means for You

July 11, 2025 • Ramsey Financial, Canton OH

The “One Big, Beautiful Bill Act” became law on July 4 and immediately rewrote large parts of the tax code. Below is a plain-English look at the key items most families, retirees and small-business owners will notice. (This post is educational only; consult a qualified tax professional for advice on your situation.)

1. Lower Income-Tax Brackets Made Permanent

The 2017 TCJA’s reduced rate schedule no longer expires in 2026. The top bracket stays at 37 percent instead of bouncing back to 39.6 percent, and every other bracket keeps its lower rate. Bracket thresholds also rise to keep pace with inflation, so more of your income is taxed at those lower rates. Tax Foundation

2. Bigger Standard Deduction—Plus a Senior Bonus

Starting with 2025 returns, the standard deduction jumps to $31,500 (married) and $15,750 (single), indexed for inflation. Taxpayers 65 and older may claim an extra $6,000 deduction through 2028 (subject to a phase-out above $75,000 single / $150,000 joint). Tax Foundation

3. Child Tax Credit Boost

Families now receive up to $2,200 per qualifying child under 17 beginning in 2026, with the same income phase-outs as before ($200 k single / $400 k married). Tax Foundation

4. Temporary SALT Relief

For 2025-2029, the cap on state-and-local-tax deductions rises to $40,000 for most households, then phases back to $10,000 after 2029. The higher cap begins to phase out once income exceeds $500 k. Tax Foundation

5. New Above-the-Line Deductions (2025-2028)

Deduction	Maximum	Income Phase-out Begins	Who Might Benefit
Made-in-USA auto-loan interest	$10,000	$100 k single / $200 k joint	New-car buyers financing qualifying U.S-built vehicles
Tip income	$25,000	$150 k single / $300 k joint	Restaurant & hospitality workers
Overtime premium pay	$12,500 single / $25,000 joint	$150 k single / $300 k joint	Hourly employees working extra shifts

6. Estate & Gift Taxes

The federal estate-tax exemption doubles to $15 million (single) / $30 million (married) in 2026 and will adjust for inflation each year. Tax Foundation

7. Breaks for Small-Business Owners

• 20 % Qualified Business Income deduction (Section 199A) is now permanent and phases out at higher income levels.

• 100 % bonus depreciation for equipment is back for good, and research-and-development costs may again be expensed immediately.

• Gross-receipts ceiling for the cash-accounting method rises to $50 million. Tax FoundationMI Chamber

  
  

8. Budget Offsets—Why You’re Hearing About Medicaid & Energy Cuts

To pay for the tax relief, the bill trims federal spending on several programs, including Medicaid, some nutrition benefits and a number of clean-energy credits. Critics argue this could reduce coverage for millions of low-income households, while supporters say the tax certainty will spur economic growth. MI Chamber

What to Do Next

1. Run a quick projection. Many clients will see a smaller federal tax bill in 2025; others (especially high-income itemizers in high-tax states) must weigh the temporary SALT expansion.

2. Update withholding or estimated payments once payroll tables are released later this year.

3. Plan large purchases—a new car or major overtime season—while the temporary deductions are available (2025-2028).

4. Review your estate plan if your net worth approaches the new exemption amounts.

Questions? We’re here to walk through how the Big Beautiful Bill applies to your unique goals and help you adjust before the changes take effect.