Trump's 'big, beautiful bill' would have wide ranging effects for Americans, from SALT to overtime

Big earners are expected to benefit more from the tax cuts and policies laid out in the bill than lower-income Americans, according to a number of nonpartisan economic studies. Households earning $217,000 or more — the top 20% of American earners — would see an average tax cut of $12,500, or 3.4%, of their after-tax income, according to an analysis by the nonpartisan Tax Policy Center. The lowest-income earners, those making $35,000 or less, would see a tax cut of less than 1% of their income, according to the study. The tax cuts would result in the top 20% of income earners seeing an average boost of $5,700 to their annual income, according to an analysis by the Yale Budget Lab, which uses a simulation model to weigh how policies will impact different demographic groups.

Under the bill, many adults currently on Medicaid will have to work, volunteer or attend school for 80 hours a month to keep their benefits. That includes people between the ages of 19 and 64 who are considered able-bodied. Exemptions include people who are disabled and pregnant. The Senate version of the bill limits that exemption for parents of children 13 years of age or younger. The bill would also eliminate, or defer, minimum staffing levels at long-term care facilities and a requirement that a registered nurse is on site at all times. Federal matching funds would no longer be allowed to help gender-transition procedures including hormone treatment, puberty blockers and surgery.

If you itemize your taxes, the Senate bill would enable you to deduct up to $30,000 more in state and local taxes, known as SALT, for the 2025 tax year. The measure would increase the current $10,000 cap to $40,000 for those earning $500,000 or less and raise it by 1% annually — a win for largely middle- and upper-middle-class taxpayers in high cost-of-living areas, especially on Long Island. The cap would remain $10,000 for those earning $600,000 or more, and revert back to $10,000 for everyone in 2030. If you don’t itemize, you could still see tax relief from the bill including an increased standard deduction of $15,750 for single filers and $31,500 for married couples.

For Long Islanders considering green-energy enhancements to their homes or businesses, the bill adds urgency to those decisions. Buying a home solar system will get considerably more expensive with the potential loss of some federal tax credits by the end of the year. The federal subsidy covers around a third of the $20,000-plus purchase and installation cost. Leased systems can still be eligible for a tax credit until the end of 2027. The bill will also put timelines on credits for certain green-energy technologies, potentially making it more expensive to install all-electric heat pumps to cool and heat homes, conduct and retrofit homes with efficiency measures and to buy an electric car — EV tax credits are set to disappear by year’s end.

If you work overtime, the proposed bill will allow you to deduct overtime pay, up to a maximum of $12,500 for individuals and $25,000 for couples, from your annual federal tax bill until 2028. The benefit would be phased out for individuals making more than $150,000 a year, or joint filers making more than $300,000 annually. The average take-home pay for workers receiving overtime could grow between $1,400 and $1,750 under the proposal, according to estimates from the White House’s Council of Economic Advisers. But the nonpartisan Tax Policy Center estimated that only 2% of U.S. households would benefit from the tax cut.

If you rely on the Supplemental Nutrition Assistance Program, or SNAP, the bill could affect your eligibility. Now, many parents with children under 18 are exempt from SNAP work requirements. Under the Senate bill, parents of children ages 14-17 would have to meet those work requirements or risk losing their benefits. More older Americans would also face work requirements. Currently, those older than 54 years old who don’t have children are exempt from SNAP work requirements. Under the bill, adults would be subject to those work requirements until they turn 65.

If you are a farmer, a proposed provision in the Senate bill would allow capital gains taxes on the sale of qualified farmland property to be paid in four installments instead of all at once. To qualify, the land must have been used for farming for the past 10 years and must continue to be used for farming for 10 years after the sale. Farmers who rely on workers living in the country illegally could face challenges maintaining their workforce, as the bill boosts funding for U.S. Immigration and Customs Enforcement.

The bill includes key changes for student loan borrowers including limits on several federal loan programs and the elimination of deferment programs. The Grad Plus Loans, which help students enrolled in graduate, professional degree programs or certificates cover attendance cost, would be eliminated. The bill would cap unsubsidized graduate borrowing at $20,500 per year, or $100,000 lifetime. Students seeking professional degrees in areas like law and medicine would be limited to borrowing $50,000 per year, or $200,000 lifetime. For undergraduate students, parents taking out Parent Plus loans also would be capped to $20,000 annually and $65,000 lifetime per student.

Under the bill, borrowers would be limited to two repayment programs, including a standard plan, where borrowers make fixed payments for 10 to 25 years based on the loan amount, or a new income-driven plan. Deferment plans related to unemployment and economic hardship would be eliminated.

The bill contains $12.5 billion to help modernize the air traffic control system by revamping communications, radio and other equipment nationwide. This comes after radar and communications outages led to widespread cancellations and delays at Newark Liberty Airport in April and May, and a midair collision in January killed 67 people near Washington, D.C.

If you are a tipped worker, such as a server, bartender or hairdresser, the bill includes a proposal that will allow those workers to deduct tips — until 2028 — from their federal income tax bills, up to $25,000. The Senate version would phase out the benefit for individuals who make more than $150,000 a year, or couples making more than $300,000 annually.

While the proposal is a tax cut for tipped workers, groups like One Fair Wage argue that the bill takes more from lower-wage workers than it gives. Over a third of the nation’s 4 million tipped workers — 2.5% of the workforce — are already not subject to federal income tax because they make so little, according to Yale Budget Lab data. "More workers will lose Medicaid and food stamp benefits than they will gain from no tax on tips," said Saru Jayaraman, president of One Fair Wage.

The bill includes billions of dollars in funding to increase U.S. Immigration and Customs Enforcement's ranks by an estimated 10,000 agents over the next five years while spending another $45 billion for more detention facilities. ICE, which would receive an infusion of more than $100 billion through 2029, becoming the nation’s highest-funded law enforcement agency, currently has around 6,100 deportation officers and a budget of about $10 billion annually. Customs and Border Protection would also receive about $7 billion to hire new agents at ports of entry. The measure, which also includes funding to hire new immigration judges, would dedicate nearly $1 billion for signing and retention bonuses for ICE and CBP agents.

The budget bill provides plenty of cash to throw America an over-the-top party. The measure appropriates $150 million to the Interior Department for activities commemorating next year's 250th anniversary of the signing of the Declaration of Independence. Although planning for the nation’s semiquincentennial is ongoing, it’s safe to expect parades, flyovers and more than a few fireworks. Trump is also expected to announce plans for a Great America State Fair next year in Iowa and a federally funded Patriot Games, featuring youth athletes from around the country competing in a multitude of sports.