Washington politicians were ready to hit hardworking Americans with one of the largest tax increases in history — a $4 trillion hike that would have raised taxes on almost every family, with the middle class bearing the brunt. The Big Beautiful Bill (OB3) stopped it.
Without OB3, tax rates would have gone up nearly across the board. The child tax credit and standard deduction would have been slashed in half. Small businesses would have lost their pass-through deduction and faced federal tax rates as high as 39.6%. Millions more Americans would have been forced to pay the alternative minimum tax and the death tax. And thanks to complicated new rules, 2-3 times as many families would have been forced to itemize their deductions, wasting more time and money just to file their taxes.
>>> Read more: OB3 Ending Decades of Tax Policy Games
By blocking this tax hike and adding new cuts, OB3 will save the average American $1,922 per year in federal income taxes between 2026 and 2034 — not including the indirect benefits from business tax relief. Roughly 80% of those savings come from stopping the tax increase that was scheduled to take effect.
>>> Read more: The Tax Cuts Help Small Businesses
OB3 also delivers targeted tax relief to families and workers:
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Raises the child tax credit from $2,000 to $2,200 (it would have fallen to $1,000 in 2026 without action) and adds a cost-of-living adjustment for the first time.
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Increases the standard deduction by $1,500 for married couples ($750 for singles).
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Allows deductions for tipped income (up to $25,000), overtime pay (up to $12,500), domestic car loan interest (up to $10,000), and new deductions for seniors ($6,000 per eligible senior, $12,000 for married couples).
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Creates a charitable deduction of up to $1,000 ($2,000 for married) for Americans who claim the standard deduction.
>>> Read more: Reasons to Make Trump’s Tax Cuts Permanent
On the business side, OB3 permanently removed tax penalties that discouraged investment in equipment and machinery while temporarily removing penalties for building factories, refineries, and farm structures.
It also phases out or eliminates costly green energy subsidies that funneled billions into the “Green New Scam.” The EV tax credit is gone, and subsidies for new solar and wind projects are being phased out.
The Big Beautiful Bill is one of the most significant pro-growth, pro-family tax reforms in decades — protecting Americans from crushing tax hikes, restoring common sense to the tax code, and ensuring more money stays in the pockets of the people who earn it.
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