The ‘Big Beautiful Bill’ Could Kill These Taxes – Are You About to Get a Bigger Paycheck?

If you’ve heard about something called the “Big Beautiful Bill” and thought, “That can’t be real,” well… it is. And it’s gaining momentum in Washington.

This bill — officially over 1,000 pages long — is backed by Donald Trump and aims to make his 2017 tax cuts permanent. But it also goes way further, proposing some sweeping changes that could reshape how much of your paycheck you actually take home.

Let’s break down what’s in the bill, what it might repeal, and how it could actually affect you — whether you’re living paycheck to paycheck, saving for retirement, or trying to make greener choices at home.

What the Bill Is Trying to Do

At its core, this bill is about:

• Locking in the 2017 Trump tax cuts (which are set to expire in 2025)

• Giving new tax breaks to working Americans

• Repealing several taxes and incentives, especially around clean energy

That sounds great at first glance, but there’s a lot more going on under the hood.

What Taxes Might Disappear?

1. No More Federal Taxes on Tips and Overtime (Temporarily)

If you’re someone who earns tips or works extra hours, this is a big deal. The bill would eliminate federal income taxes on tips and overtime pay for workers making up to $160,000 a year. That means more money in your pocket. But — and it’s a big “but” — this would only last through 2028 unless extended.

2. Auto Loan Interest Deduction Comes Back

Under this bill, you could deduct up to $10,000 per year in auto loan interest. That’s especially helpful now, with car loans more expensive due to higher interest rates. It’s a throwback to deductions we had decades ago.

3. Bigger Standard Deduction for Seniors

If you’re over 65, this bill would give you a larger standard deduction — meaning you’d pay less in taxes without needing to itemize. It’s a simple change, but one that could make retirement a little more affordable.

4. Larger SALT Deduction Cap

Right now, there’s a $10,000 limit on how much state and local taxes you can deduct on your federal return. This bill would raise that cap to $40,000 for households earning under $500,000. That’s a win for folks living in high-tax states like California, New York, or New Jersey.

5. Clean Energy Credits Would Be Slashed

Here’s where things get controversial. The bill would repeal or shrink many tax credits tied to clean energy. That includes:

• Solar panel installation credits

• Home energy-efficiency upgrade credits

• Electric vehicle (EV) purchase incentives

So if you were thinking of going solar or buying an EV, this could cost you.

6. Miscellaneous Repeals

The bill also tosses out a few lesser-known taxes, like:

• The indoor tanning tax (yes, that’s real)

• The federal tax on gun silencers (which has stirred plenty of debate)

Who Benefits and Who Might Not

People likely to benefit:

• Hourly workers who earn tips and overtime

• Middle-income families buying cars

• Seniors filing taxes on a fixed income

• Households in high-tax states

People who might lose out:

• Anyone planning to buy an electric car or upgrade their home to be more energy-efficient

• Low-income Americans relying on federal assistance, as the bill cuts Medicaid and food stamp funding

• Future taxpayers, because the bill could add trillions to the national debt

Why It’s Not a Done Deal Yet

Right now, the bill has passed the House but is facing tough opposition in the Senate. Even some Republicans are concerned about how much it would cost — estimates say it could add $2 to $5 trillion to the deficit over the next decade.

Democrats are also pushing back, especially over the parts that slash clean energy funding and social safety net programs.

So while it’s definitely making waves, this bill isn’t law yet. And it may go through serious changes before it even gets a final vote.

What You Should Be Thinking About

If you’re wondering how this could affect you, here are a few things to consider:

• If you earn tips or lots of overtime, keep an eye on this bill. It could put more money in your pocket — for a few years, at least.

• If you’re buying a car or already have a big loan, that interest deduction could help lower your tax bill.

• If you were planning to invest in solar or buy an EV, you may want to act sooner rather than later.

• If you’re a retiree or nearing retirement, the bigger standard deduction could work in your favor.

The “Big Beautiful Bill” is loaded with changes — some that could put cash back in your wallet and others that could take away benefits you were counting on. It’s a mix of tax relief and spending cuts, and depending on where you stand financially or politically, it’ll hit you differently.

So stay informed, check how this might affect your personal taxes, and if you’re unsure — reach out to a tax advisor.

The bill isn’t law yet, but if it passes, it’ll be one of the biggest shifts to tax policy in years.

Let me know if you’d like a quick checklist, a simplified summary for social media, or even a local breakdown based on your state.