Originally published by the Wausau Pilot and Review
This month, Congress passed the One Big Beautiful Bill (OBBB), and President Trump signed it into law. This historic legislation delivers the largest tax cut in American history, putting more money back in your pocket and protecting benefits for the most vulnerable.
Before diving into how this bill will help you directly, let’s clear up one important fact: the OBBB does not cut Medicaid for mothers, children, people with disabilities, or seniors. In fact, it strengthens and preserves Medicaid by removing 1.4 million illegal aliens from the program.
The bill also restores commonsense work requirements to the welfare system. Able-bodied adults will now be required to work or volunteer at least 20 hours a week in order to receive taxpayer-funded benefits. Exemptions apply to those who are elderly, pregnant, disabled, caring for young children or aging parents, or enrolled in school at least half-time. This policy encourages personal responsibility while protecting resources for truly vulnerable Americans, and over 80% of Wisconsinites supported this requirement in the 2023 referendum.
Now, what does the OBBB mean for you?In Wisconsin, families are expected to take home over $7,000 more each year thanks to this bill. According to the nonpartisan Joint Committee on Taxation, the biggest tax cuts will benefit Americans earning under $50,000 a year. Overall, people making between $30,000 and $80,000 can expect to see their taxes drop by about 15%.
The bill also raises the Child Tax Credit to $2,200 per child and establishes a $1,000 investment account for American newborns, helping give every child a head start. It also supports working parents by expanding the Employer-Provided Child Care Credit, encouraging more businesses to offer affordable child care.
Beginning in 2025, tipped workers will be able to deduct up to $25,000 in tips from their taxable income—whether received in cash, by card, or through tip pooling. Workers who log overtime, including nurses, police officers, factory workers, and countless others, will also be able to deduct their overtime pay from federal taxes. That means more money stays in the pockets of those keeping America running.
Seniors benefit too. Thanks to the enhanced $6,000 standard deduction, nearly 9 in 10 Social Security recipients—more than 51 million Americans—will no longer pay federal taxes on their Social Security benefits.
For small businesses, the legislation makes permanent the Section 199A Qualified Business Income Deduction, which was set to expire at the end of 2025. This provides lasting relief for millions of small business owners—whether they are sole proprietors, gig workers, or part of S corporations. It also restores 100% bonus depreciation, allowing businesses to immediately deduct the full cost of new equipment, a crucial tool for industries like manufacturing, construction, and farming. Additionally for farmers, the bill improves crop insurance and ensures that family farms can be passed on without being hit with crushing death tax burdens.
Lastly, the bill strengthens national security by funding the border wall, giving DHS tools to carry out deportations, and codifying 28 of President Trump’s America First executive orders. These include unleashing American energy, increasing mineral development, and expanding timber production.
While there is still much work left to do this Congress, the OBBB signals a new direction for our country. Whether you are raising a family, running a small business, operating a family farm, clocking in on the night shift, or living on a fixed income as a senior, this bill was crafted for you. It opens a new chapter in Washington, one that puts the American people first.