It is fitting that President Trump aims to sign the Big Beautiful Bill by July 4: Americans will have the freedom to keep more of what they earn.
The bill provides across the board income tax cuts for American households and powerful, job-creating tax cuts for American businesses. The tax cuts will increase take-home pay and make America even stronger and more competitive.
House and Senate Republicans will send the bill to President Trump’s desk in the coming days.
To start, the bill prevents a $5 trillion tax increase on Americans. Thankfully the GOP has full control of the House, Senate, and Presidency, because if Kamala Harris had prevailed last November, the 2017 Trump tax cuts would expire on December 31.
Harris threatened repeatedly to “eliminate” the Trump tax cuts. If that were to happen, every single American taxpayer would see their income tax rate increase back to the higher level of the Barack Obama years.
Thankfully President Trump campaigned and won vowing to make the Trump tax cuts permanent across the board.
The permanence of the bill’s tax cuts is of chief importance.
Permanently reduced tax rates and business expensing allows American companies to invest in productivity-increasing technology, purchase new trucks and plant and equipment and hire more employees secure in understanding what the tax rules are now and will be in the decades ahead. This also means businesses can afford to pay their workers more. The tax bill increases annual real wages per worker by up to $7,200 in the first four years of implementation, according to an analysis by the Council of Economic Advisers.
Next, the big beautiful bill enacts Trump’s no tax on tips promise. This includes tipped employees as well as independent contractors and the gig economy. It will help barbers, stylists, restaurant servers, bartenders, drivers, delivery workers, caddies and dozens of other traditionally tipped occupations.
The bill also expands the standard deduction, providing an income tax cut and a tax simplification at the same time.
The bill extends small business tax relief, expands the per child tax credit, ends the tax on overtime, and provides tax relief for seniors.
The bill also reins in the IRS by repealing Biden’s 1099-K IRS surveillance law. This IRS paperwork nightmare imposed by Democrats forces Americans to deal with invasive paperwork any time they use Venmo or PayPal for more than $600 in transactions in a given year.
You’ll no longer have to prove to an IRS agent that the Venmo transfer from your roommate to cover his part of the rent is not taxable income. Or the funds you collected for ticket purchases are not taxable. Same goes for the payment you received when you sold an old bike or lawn mower out of your garage.
The big beautiful bill will help the economy grow faster, creating more jobs and higher wages in the process.
President Trump is a historic tax cutter, and this bill builds upon his success.
When the corporate income tax rate was reduced by Trump from a highest-in-the-developed world 35% (even higher than China’s 25%) down to 21%, the economy grew substantially.
Before Trump’s 2017 tax cuts, many businesses “inverted” — they were bought by foreign companies and moved their headquarters overseas.
Why? Because our then-high tax rates and onerous laws required income earned overseas to be taxed again if it was brought back to the United States. That meant many companies were worth more if moved to France or Canada.
Not now. Since the Trump tax reforms there have not been any large companies “inverting.” Now companies move to the United States.
Trump’s signature on the big tax cuts will reward hard-working Americans and turbocharge American economic growth. And leave the Euroweenies in the dust.
Grover Norquist is President of Americans for Tax Reform.
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