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Here's how Trump's big bill will change taxes

13 13
04.07.2025

President Trump's domestic agenda bill spans military and immigration measures, major cuts to national healthcare, and numerous industrial incentives — but the heart of the bill is still tax cuts.

The Congressional Budget Office and the Joint Committee on Taxation scored the Senate version of the bill as cutting deficits by $500 billion over ten years without the cost of the main tax cuts in the bill, which are extensions of cuts initially passed in 2017.

With those cuts included in the accounting, the cost is $3.3 trillion, or about 9.1 percent of the total U.S. debt stock at $36 trillion. This number does not include additional interest costs necessary to pay for the debt.

Revenues from tariffs are expected to offset a significant portion of the cost at about $2.5 trillion, not counting macroeconomic and debt-service costs, but are still less than the overall cost of the bill.

Here’s a breakdown of the big tax provisions that are the bill’s centerpiece.

Individual provisions

The 2017 tax law’s lower marginal tax rates, higher standard deduction, and cancellation of personal exemptions are all maintained and made permanent.

The standard deduction is boosted by $750 for single filers and by $1,500 for couples. Inflation adjustments apply to the bottom two tax brackets only.

The child tax credit is boosted to $2,200 from $2,000, adjusted for inflation and restricted to taxpayers with a Social Security number.

The alternative minimum tax exemption is made permanent, but the phaseout happens twice as fast.

The inheritance and gift tax exemptions are increased to $15 million for........

© The Hill