House Republicans Push “One, Big, Beautiful Bill” Forward with Trillions in Tax Cuts

Muhammad Bilal
7 days ago
3 min read

In mid-May 2025, the House Ways and Means Committee advanced a landmark Republican tax package—nicknamed the “One, Big, Beautiful Bill”—on a strict party-line vote. This 389-page proposal combines permanent and temporary tax cuts totaling an estimated $3.8 trillion to $5 trillion over the next decade, balanced by targeted revenue-raisers and spending offsets. With a full House vote scheduled before Memorial Day, the legislation represents the centerpiece of the GOP’s domestic agenda and aims to extend and expand many provisions of the 2017 Tax Cuts and Jobs Act (TCJA) while introducing new tax measures.

Bill Overview

Scope & Scale: The legislation would make permanent the 2017 individual and corporate rate cuts—locking in a top individual rate of 37% and a 21% corporate rate—while rolling back certain pandemic-era relief measures and green-energy incentives.
Duration: Many new provisions sunset between 2028 and 2029, creating future fiscal cliffs unless extended.
Legislative Path: After the Ways and Means markup (26–19 party-line vote), the bill moves to the Budget Committee for bundling with mandatory spending cuts, then onto the full House for final passage. Politico

Key Provisions: Major Tax Cuts

Permanent TCJA Rates: Maintains individual brackets and the 21% corporate rate beyond their current expiration dates.
Child Tax Credit Expansion: Raises the credit from $2,000 to $2,500 per child, though new eligibility rules—such as requiring valid Social Security numbers for both parents—could exclude up to 4.5 million children. The Guardian
State and Local Tax (SALT) Deduction: Increases the SALT cap from $10,000 to $30,000, offering relief for taxpayers in high-tax states.
Tip Income Exemption: Exempts certain service industry tips from federal taxation, benefiting hospitality and restaurant workers.

Key Provisions: Targeted Revenue-Raisers

Green-Energy Incentive Rollback: Phases out or rescinds select clean-energy tax credits enacted under the Biden administration.
College Endowment Tax: Increases taxes on large university endowment earnings, directing additional revenue toward targeted spending cuts.
Medicaid Savings & SNAP Changes: Enacts stricter work requirements for food-aid beneficiaries and shifts more program costs to states, projected to save $900 billion over ten years. AP News

Political and Economic Context

Intraparty Dynamics: The bill exposed rifts within the GOP—representatives from high-tax states criticized the SALT cap increase as insufficient, while conservatives pressed for deeper spending cuts.
Fiscal Impact: The Committee for a Responsible Federal Budget estimates the measure would add $3.8 trillion to deficits if temporary provisions expire or $5.3 trillion if extended.
Public Reception: Democrats and advocacy groups decried the package as skewed toward high-income households, pointing to expanded child credit exclusions and limited support for low-income families.

Implications for Businesses and Individuals

Corporate Planning: Permanent rate certainty aids long-term investment decisions, but sunsetting provisions may complicate capital budgeting beyond 2028.
Household Budgets: Expanded child credits and higher SALT caps benefit many families, yet tighter eligibility criteria and sunset clauses introduce uncertainty.
Estate and Retirement Planning: While most retirement rules remain intact, impacts on charitable giving and endowment taxes could affect nonprofit funding strategies.

Next Steps & Timeline

Full House Vote: Expected before Memorial Day 2025.
Budget Reconciliation: The bill will be paired with mandatory budget cuts in the Senate, requiring 51 votes under reconciliation rules.
Conference Committee: Differences between House and Senate versions must be reconciled, with final enactment timing unclear amid intraparty negotiations.

Conclusion

The “One, Big, Beautiful Bill” represents the most ambitious Republican tax overhaul since 2017. Its combination of sweeping tax cuts, targeted revenue-raisers, and sunset provisions underscores the GOP’s strategy to cement former TCJA benefits while managing deficit impacts. As the bill moves toward a full House vote and subsequent Senate reconciliation, businesses, tax professionals, and households should monitor evolving provisions and prepare for both the benefits and uncertainties ahead.