What the Big Beautiful Bill May Mean for You
By Matt Held, CFP®
After years of discussion, varying forecasts, and no small amount of controversy, President Donald Trump’s Big Beautiful Bill was finally passed by Congress and signed into law on July 4. Its name may sound like a lilting, playful one, but that masks the sweeping changes that may result. The 940-word bill covers a lot of ground, and its sheer heft can leave everyday Americans uncertain as to how it affects them.
This post looks at some of the most impactful provisions of the Big Beautiful Bill. Learn about the potential benefits it may provide, as well as a few of the cutbacks the bill puts into motion. Finally, find out how they might affect you and your family.
What’s in the Big Beautiful Bill?
Much of the Big Beautiful Bill focuses on making temporary provisions in the Tax Cuts and Jobs Act of 2017 (TCJA) permanent. It restricts income tax rates up to 37% from increasing. The bill also increases standard deductions ($15,750 for single filers, $23,625 for heads of household, and $31,500 for married couples), with adjustments for inflation.
The bill also increases deductions of state and local taxes (SALT) from $10,000 to $40,000 until 2030 for those with adjusted gross income (AGI) below $500,000. Seniors now get a standard deduction of $6,000 if they’re over 65 and have an AGI of $75,000 (single) or $150,000 (married). The Big Beautiful Bill also makes the Child Tax Credit permanent and raises it from $1,750 in 2025 to $2,200 in 2026.
Other interesting specifics about the Big Beautiful Bill include:
- Deductions for tips and overtime pay for up to $25,000 annually
- Deductions for new car loan interest if the vehicle was assembled in the U.S.
- Changes to federal financial aid and student loans, including increased eligibility for Pell Grants
- Cementing of federal estate tax exemptions to limits of $15M (single) and $30M (married filing jointly)
- Expansion of the Section 199A deduction for small businesses
There are savings opportunities in the bill as well. It expands the qualified parameters of Section 529 savings accounts for education and increases approved distributions to $20,000 a year. The bill also provides savings accounts for newborns, seeded with $1,000 from the government from now until 2018.
What the Big Beautiful Bill Takes Away
Most criticism about the Big Beautiful Bill centers on cuts and the elimination of some long-standing programs. They include:
- $1 trillion cuts to the federal Medicaid program
- Work requirements of 80 hours a month for qualified Medicaid members
- Elimination of benefits for 1.4 million immigrants with insufficient documentation
- Funding reductions for the Supplemental Nutrition Assistance Program (SNAP), plus new work requirements
- Around $490 million in cuts from Medicare funding
- Elimination of automatic re-enrollment as put forth by the Affordable Care Act (ACA)
- Massive cuts to clean energy funding, ending investment credits for sustainable energy
These cuts, whether temporary or permanent, may put a measurable strain on the U.S. trade deficit.
How to Plan for the Future
The overall effects of the Big Beautiful Bill may have ramifications on the financial future of America and its citizens. In the next few months, expect financial professionals to study the new law carefully to grasp its full impact. Most importantly, families and taxpayers need to know what they should do in light of the new provisions.
Clarity Wealth Management can help you understand what the Big Beautiful Bill means and what you can do to retain a strong financial standing. We expect many clients will contact us as the effects of the bill unfold; we can put our approach to work for your family as well.
Interested in a no-obligation, icebreaker call? Schedule online here, call (513) 278-9420, or email Info@ClarityWealth.org.
About Matt
Matt Held, CFP®, is the lead advisor and a founding partner of Clarity Wealth Management, a boutique firm based in Cincinnati, OH. Since entering the industry in 2006, Matt has helped corporate executives, professionals, and business owners uncover opportunities and build long-term financial strategies. Driven by a desire to control his own future and create a lasting brand, Matt co-founded Clarity Wealth Management in 2012. His mission was to build a firm that would provide truly personalized guidance—and become a legacy for his own family. Today, Clarity serves about 100 households and focuses on helping clients simplify and navigate complex financial decisions, particularly those involving equity compensation, tax planning, and executive retirement.
Matt’s approach is rooted in trust, loyalty, and hard work. As a CERTIFIED FINANCIAL PLANNER® professional, he is deeply committed to long-term relationships and believes that clarity doesn’t mean predicting the future, but having the confidence that your plan can handle whatever comes your way.
Outside of work, Matt enjoys time with his wife, Abby, and their twins, Henry and Kinsley. Whether it’s watching sports (they love their Ohio State Buckeyes), hitting the slopes out West, or squeezing in a workout, he’s passionate about staying active and present. He’s also a proud graduate of Moeller High School and The Ohio State University. Matt holds Series 7 and 66 licenses, is licensed for health insurance, and earned his CFP® certification in 2012. He has been named a Five Star Wealth Manager in the Cincinnati area since 2013.* To learn more about Matt, connect with him on LinkedIn.
*2013-2018 and 2020-2024 Five Star Wealth Manager Award, created by Five Star Professional. The 2024 award was presented in September 2024 based on data gathered within 12 months preceding the issue date. Advisors pay a fee to hold out marketing materials. Not indicative of advisor’s future performance. Your experience may vary. For more information, please visit www.fivestarprofessional.com.
