Alyssa Farah Griffin, who briefly served as the president's director of communications during his first term, says she can't remember him ever 'not doing what they're very vocally asking him to do.'
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Senate Democrats say Trump's policies are hurting America's ability to compete with China
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Opinion - 5 big wins for the middle class in the ‘big, beautiful' law
President Trump has once again defied the odds and the Washington establishment. With the stroke of a pen, the 'big, beautiful' budget bill became law on July 4, delivering a stunning victory for his second-term agenda and a bold affirmation of his promise to put America's middle class first. The new tax and spending law delivers real, lasting changes that strengthen working families, reward productivity, and restore common sense to Washington's economic priorities. Here are five ways it will benefit the middle class, highlighting how this legislation serves as a cornerstone for a more prosperous economic future for tens of millions of Americans. 1. Extending the tax cuts The centerpiece of the new tax and spending law is an extension of the personal income tax cuts created by the Tax Cuts and Jobs Act, which President Trump signed into law in 2017. The 2017 tax cut law provided one of the most significant tax cuts in history for middle-income Americans. Earlier this year, I published an updated study about the effects of the 2017 tax cuts for individuals and families. As I showed in that report, the taxpayers who received the biggest cuts, in terms of percentage saved, were those earning less than $75,000. The study further revealed that more than 50 million middle-income filers have likely saved between $6,322 and $13,494 each because of the legislation's tax cuts. The personal income tax cuts included in the 2017 law were set to expire at the end of this year. Without the extension contained in the 'big, beautiful' bill, the sunset of the tax cuts would have caused one of the largest tax increases in history for nearly all Americans, including the middle class. Tens of millions of families would have been forced to pay thousands more in taxes over the next five years as a result of letting the Tax Cuts and Jobs Act cuts expire. Thankfully, that didn't happen. The new spending law has made those personal tax cuts permanent, creating much-needed certainty and preventing skyrocketing tax bills for families. 2. Increasing the Child Tax Credit The new tax and spending law expanded and made permanent the Child Tax Credit, which was also set to expire at the end of this year. The revised Child Tax Credit will provide a $2,200 cut to families' tax bills for each qualifying child, a $200-per-child increase compared to this year. Additionally, the Child Tax Credit will increase in future years, based on inflation. Middle and working-class filers are the biggest beneficiaries of the Child Tax Credit, which phases out for higher-income earners. The new Child Tax Credit will save families with two children or more at least $4,400 per year, or $22,000 over the next five years. Had the current tax credit expired at the end of the year, the credit would have dropped to $1,000 and eligibility requirements would have excluded many families from taking advantage of the provision. 3. Reduced taxes for tips and overtime pay In keeping with two of President Trump's most-talked-about campaign promises, the 'big, beautiful' law dramatically reduced taxes for tips and overtime, policies that benefit middle-income and working-class filers the most. Under the new law, workers will be allowed to deduct as much as $25,000 in tips from their income tax bill. The cap decreases for individuals earning $150,000 per year or more and couples earning $300,000 or more. The deduction for overtime pay is $12,500. These two provisions could save filers thousands of dollars per year, depending on current income levels. However, because of budget reconciliation rules, both provisions are set to expire in 2029. 4. Trump Accounts Perhaps the most underrated part of the new tax and spending law is the creation of a new tax-advantaged program commonly called Trump Accounts. Trump Accounts allow parents to save as much as $5,000 per year for their children. Contributions are tax-deductible, which means parents won't pay taxes on the money they contribute each year to the fund. Trump Account funds will be invested in a U.S. stock index fund, a relatively safe way to enjoy long-term investment gains. The funds cannot be withdrawn until a child turns 18, but at that time, he or she can use the funds for qualified expenses, which includes buying a home, starting a small business or paying for college. During the year of withdrawal, children would have to pay income taxes on the funds withdrawn, but since most young adults do not have high-paying jobs, the tax bills should be low. Employers will also be allowed to contribute up to $2,500 per year for their employees' Trump Accounts. Those funds will not be counted as income for employees for tax purposes, either. Additionally, the law creates a four-year pilot program that automatically opens accounts for children born between Jan. 1, 2025 and Dec. 31, 2028 and provides each of those children with a $1,000 deposit. If used properly, Trump Accounts will be a powerful way for middle-income families to set their children up for success. Based on an annual average return of 10 percent, a family that contributes just $200 per month to a child's Trump Account would provide that child with about $120,000 at the age of 18, assuming the parents start at the time the child is born. That's more than enough money to help a child buy a small home, start a business or pay for college expenses. 5. Tax deduction for seniors The legislation provides a tax deduction up to $6,000 for filers aged 65 or older and whose income is $75,000 or less ($150,000 or less for couples). When combined with the new, increased standard deduction offered under the law, the $6,000 deduction for seniors will effectively eliminate taxes on Social Security income for the vast majority of filers. The Social Security Administration says thanks to the new changes, 'nearly 90 percent of Social Security beneficiaries will no longer pay federal income taxes on their benefits.' Justin Haskins is a New York Times bestselling author, a senior fellow at The Heartland Institute, and president of the nonpartisan think tank Our Republic. Copyright 2025 Nexstar Media, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed. Sign in to access your portfolio
