One beautiful invoice law: Five important policies that must be known

Republicans in Congress passed the president Donald Trump The tax cuts and spending policies known as the one beautiful law of law (OBBA), which the president is expected to sign in the law on the fourth of July.

The draft law extends Tax discounts The tax cuts and jobs law is scheduled to end in 2017, and some are permanently extended, such as low tax rates and deduction of the highest level of taxpayers.

OBBA also includes new forms of tax exemptions, including relief provisions for workers who acquire advice and additional work, as well as retirees, while addressing tax problems for small companies and those facing costly capital investments.

Given the breadth of the bill, companies, workers, families and retirees will witness changes to the tax policies that affect them. Here is a look at five major political areas touched by the bill.

What is in the “Great and Beautiful Bill” for American workers?

Federal income taxes

the A single beautiful invoice work (OBBA) makes permanent among the low tax brackets with the revised income thresholds created by TCJA.

OBBA also performs the standard discount, which has almost doubled under TCJA, and is always before its expiration of this year. The draft law also increases $ 750 for individuals, $ 1500 for married couples, and $ 1125 for the head of the family, which is effective in the tax year 2025. About 90 % of Federal taxpayers are used to standard discount instead of detailing the discounts.

Capital and factories investments

OBBA regains the immediate expenses by 100 % for the capital investment that was temporarily allowed under TCJA and applies it retroactively on the investments made on January 19, 2025, the day before President Trump’s inauguration.

Providing permanent capital investment expenses under OBBA, and the maximum taxpayer is increased to $ 2.5 million under the bill.

Republicans challenge financial critics to pay the “beautiful” Trump tax discounts

To encourage building Manufacturing factories The construction of new factories in the United States made more economically feasible, the bill allows companies to enforce new factories and fully improve factories.

In fact, this allows companies to perceive the tax benefits of the incentive immediately, which can make such investments more attractive. Under the IBBA tax law, companies were asked to deduct the cost of non -residential real estate property over 39 years.

Small business deduction

OBBA makes a conclusion 20 % Small companiesIncluding the only ownership, partnerships and companies S to deduct up to 20 % of qualified work income, in addition to 20 % of qualified real estate investment profits (ReIT) and entered the qualified partnership circulating for the public (PTP).

It will also create new Amendment of inflation The minimum discount of $ 400 for taxpayers with at least $ 1,000 in qualified business income to ensure that qualified small business owners can reach an improved basic discount.

Most Americans are imposed on a height if the house is unable to pass a “large and beautiful invoice”

Reducing retirees tax

OBBA provides an additional discount of 6000 dollars for taxpayers 65 and above at the top of the standard deduction available to all taxpayers, in addition to an additional record of $ 2000 for individual candidates and $ 1,600 for each pair qualified for the participating candidates 65 and above.

The bonus deduction of $ 6000 will be valid and it will be valid until 2028 Retired high incomeWith a full discount available for individuals who have an income of $ 75,000 or $ 150,000 for joint candidates. It comes out entirely for individuals who earn more than $ 175,000 and husbands who earn $ 250,000.

The judgment was placed as an alternative to the proposal to eliminate taxes on Social Security The benefits are directly, instead compensation for some of what they owe based on their income levels.

Advice and additional work

While the bill does not stop canceling federal income taxes completely on Income And on the additional work as it was discussed in the campaign’s path, it creates new discounts that will provide relief to such workers until 2028, when their validity ends.

Get Fox Business on the Go by clicking here

Muniche workers, such as restaurant servers, two, and drivers, will be able to deduct up to $ 25,000 in qualified tips.

In addition, the invoice creates an income discount over the line for the additional installment payments of $ 12,500 for clock workers working in additional work.