President Donald Trump. (Photo: Whitehouse.gov)
One Big Beautiful Bill Passes House, Goes to Trump for July 4 Signature
This is a sweeping MAGA victory on taxes, the border, energy, welfare reform, and defense
By Katy Grimes, July 3, 2025 5:20 pm
“OBBB” as the One Big Beautiful Bill is nicknamed, has passed the House and is one its way to President Donald Trump for a July 4th signing. What a symbolic signing that will be.
There’s a lot to love in H.R.1, the OBBB, even if 0ver-spending hasn’t yet been halted. We will get to that below.
Let me count the ways:
Planned Parenthood will be unfunded, and will lose close to $1 BILLION in taxpayer dollars. Budget hawks are saying PP could close as many as 200 locations.
Medicaid fraud has been defunded. As the Paragon Health Institute explains, “The One Big Beautiful Bill would reverse the Biden-era Medicaid and Obamacare spending surge and significantly reduce waste, fraud, abuse, and corporate welfare in Medicaid and Obamacare. The Senate version improves upon the House version by further cracking down on Medicaid money laundering with an opportunity to address Obamacare’s Medicaid discrimination against the most vulnerable.”
“The House-passed OBBB addressed Medicaid money laundering by freezing the provider tax scam and halting egregious schemes—like those implemented in California—that involve kickbacks and were used to finance Medicaid coverage for unauthorized immigrants. It capped Medicaid payments sent through managed care plans at or just above Medicare rates to address the rising corporate welfare in the program.”
More of Joe Biden’s Illegal aliens will be deported because ICE will receive an infusion of more than $100 billion through 2029: $45 billion for detention facilities, $46 billion for border wall operations in the U.S.-Mexico border and $14 billion for deportation operations. ICE currently has about 6,000 employees, and will hire an additional 10,000 new agents by 2029 with the funding infusion.
No tax on tips and overtime: The White House calculated that on $500 weekly take-home pay, with $200 in tips, and $100 in overtime pay, no-tax on tips and overtime Saving per Week $36, Savings per Month $154, and Yearly Savings of $1,854.
The White House also estimates with the no taxes on tips and overtime, that California employees take home more pay annually between $9,200 to $16,000 annually.
No tax on Social Security – According to the White House:
Overview
• The One Big Beautiful Bill (OBBB) delivers on President Trump’s promise of No Tax on Social
Security.
• The bill includes the largest tax break in American history for our nation’s seniors:
o 88% of seniors receiving Social Security benefits will pay no tax on their benefits under the
OBBB as a result of their total deductions exceeding their taxable Social Security benefits.
• The deductions ensure that seniors who earned their Social Security through years of hard work get more money back in their pockets.
No Tax on Social Security: Senate Draft Bill
The One Big Beautiful Bill provides a new bonus deduction of $6,000 for seniors age 65 and older ($12,000 for married seniors) beginning in 2025. This amounts to the largest tax break in American history for our nation’s seniors. The new deduction is on top of the standard deduction and the current-law additional
deduction for seniors. The bill also increases and permanently extends the standard deduction and many other features of the 2017 Tax Cuts and Jobs Act that were otherwise scheduled to expire after this year, resulting in significant ongoing savings for most taxpayers.
Under the One Big Beautiful Bill, 51.4 million seniors – 88% of all seniors receiving Social Security income – will pay no tax on their Social Security.
*Includes seniors who receive Social Security income but have no such income in their AGI.
Note: Calculations are for tax year 2026 and correspond to the version of the Senate OBBB text published on June 16, 2025. In that version, the standard deduction for 2026 was $16,000. In the version published June 28, 2025, the 2026 standard deduction will be based on an inflation-indexed value that exceeds $16,000. Source: U.S. Treasury, June 24, 2025.
As for U.S. spending and the colossal deficit, many of Trump’s critics have claimed his reciprocal tariffs will increase inflation and destroy jobs. Au contraire.
Notably, the jobs report out Thursday showed a much bigger-than-expected increase in employment – 147,000 jobs were added in June, surprising the nay-sayers. “Economists polled by The Wall Street Journal had forecast a slender 110,000 increase in new jobs last month,” MarketWatch said.
The unemployment rate decreased slightly to 4.1%, again lower than economists’ expectations of 4.3%, Fox Business reported.
Honest economists have predicted that President Trump’s tariffs could create 15 million new jobs by bringing manufacturing back to the U.S. And as we’ve reported for years, manufacturing jobs are high-paying with really good employee benefits. These are the jobs that were sacrificed by NAFTA since 1992.
Defense Gets a Boost
Defense spending got a big boost, as well: “A $157 billion defense funding boost that the Pentagon has been counting on to compensate for an otherwise flat budget,” Military.com reported. “In addition to bulking up defense funding, which includes a few billion dollars for service member quality-of-life improvements, the bill will slash social safety net programs, including food assistance that military families and veterans rely on.”
Some details:
- The OBBB has $1 billion barracks restoration, divvied up between the Army, Air Force, Navy and Space Force.
- $350 million specifically for the Marine Corps‘ housing improvement initiative known as Barracks 2030.
- temporary authorization for more widespread barracks privatization, an idea that has gained steam in recent years as the services have struggled with maintenance backlogs.
- $29 billion for shipbuilding, $25 billion for munitions and $25 billion for the Golden Dome.
Even egg prices are down once again:
Current Price: $2.55 per dozen as of June 2025
Average Price: $4.05 per dozen selected period
Highest Price: $8.17 per dozen reached March 2025
Lowest Price: $2.52 per dozen reached May 2025
Notably, the highest egg prices are in California – I can attest to this.
As President Trump noted on Truth Social:
This is a sweeping MAGA victory on taxes, the border, energy, welfare reform, and defense. More details to come.
A California native and Navy mom, Katy lives in Sacramento, CA.
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September 29, 2018 -
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I believe President Trump is a national treasure.
Happy Independence Day folks!
(Even you, Guber Newsom! Because after all, sometimes it just takes a little leftist nudge from wannabe tin-pot autocrats like yourself, which causes good citizens to rise up, at the just the right moment, to bring traditional America home.)
The reason that the price of eggs is down is because the public pushed back on the culling of chickens that even Trump’s USDA wanted to continue doing. We have to continue to pressure that agency to do the right things.
And despite what Trump and the SSA is claiming, what the bill does is provide a 4 year cut in taxes for seniors with incomes below $75,000. It does not eliminate taxes on Social Security.
You are correct that not all SS recipients will not see the taxes eliminated from SS although the percentage who did see taxes removed from it went up. As I understand it you can blame reconciliation rules and not was originally proposed. While it’s personally disappointing (I am in the 12% group whose SS will still be taxed) with what I know so far about the OBBB it looks like our federal taxes (my wife still works, and we file jointly) will still be going down about $2,500 a year. Stop and think for a second they used reconciliation process because a simple majority in the Senate doesn’t matter. Talk about tying the governments hands and bogging it down. There are poison pills at every level of government that stops it from being effective that need to be ended. California is one of the worst about bogging things down because of stupid government policies.
Hal, thanks for your information. I’m receiving SS but still working. How can I determine if my SS will no longer be taxed?
Fed Up there are several different individual filing factors that determine if your SS is taxable. Household income and filing status are the 2 primary factors. What is good for folks over 65 with the OBBB is the additional $6,000 deduction per filer over 65 that is new for 2025. There is also a new up to $2,000 charitable donation tax credit without itemizing in the bill. The standard deduction for 2025 is going up for a married couple to $30,000. There is also an over 65 extra increases to the standard deduction for a couple of either $3,200 per couple if both are over 65 or $1,600 if only 1 is 65. If you are a couple of 2 that makes $2,000 in charitable donations and are both over 65 your deduction for 2025 would be $47.200. To drill down to your individual situation, you will need to research on the IRS web site. Soon there will be a flood of information on the web that you can look at as well.
Thanks Hal!
what about the egregious 1099k/$600 income tax????
Egg prices have nothing to do with who is president. After the massive die off of hens due to the Bird flu, their population is starting to rebound and the supply is more plentiful. More supply, same demand, prices decrease. Very simple and basic economics.
It wasn’t so much a “massive die off” but the fact that farmers were paid by the government to kill their chickens.
https://merylnass.substack.com/p/whats-up-with-bird-flu
Donald Trump and his fellow Republicans have created the vehicle to spend America into utter obliteration.
Three weeks ago the third major credit reporting company (Moody’s) downgraded America’s credit rating with no comment from the President; MAGA is deception.
Musk knows of Trump’s insincerity thus he bailed.
Trump and the Republicans who supported the egregious spending legislation are the swamp.
I have had a middle to slightly lower income my entire working life. I’m getting two tax breaks from this bill. Can we safely assume that you will return any “fascist inspired” tax break you get in protest? TDS. The gift that keeps on giving.
Believe me, I pay my share of taxes; federal, income and corporate plus real estate. My tax liability subsidizes many but not the issue.
The interest on the already amassed debt exceeds the defense budget. For Trump and his cohorts to exacerbate this egregious liability knowing reconciliation of the debt breaching the impossible is blatantly criminal and a gross breach of fiduciary duty; the elements of criminal intent exist.
The prevailing mind set of most America’s is that of Bernie Madoff’s clients: They knew what is happening too good to be true and fraudulent in nature but don’t care so long as they can maintain their hedonistic pursuits.
To further incumber America with irreconcilible debt and the interest that debt commands
This is Chicken Little speak. I hope that you still aren’t holding your breath for inflation caused by tariffs.
Thanks, for the fireworks.
The bill is not perfect, but it is an overall improvement for our nation. For instance, I don’t understand why tips and overtime should not be taxed. Self-employed people are constantly working overtime, and they are still taxed. Meanwhile, I don’t think Social Security should be taxed at all. It’s double taxation. On the plus side, the original Trump tax cuts stay in place. There is money for border security and defense. Some of the government fraud with Medicaid fraud is addressed.
REALLY
https://www.informationliberation.com/?id=64976