Dear friend,

I’ve written to you about the changes we’ve made to Medicaid through the One Big Beautiful Bill (OBBB), in order to strengthen the program for those who need it. I’ve also written about the misinformation surrounding those reforms. You can read that here.

There is also misinformation about taxes in the bill. National Democrats claim that the OBBB is one big tax break for the ultrawealthy. But that is simply NOT true.

FACT: The OBBB cuts taxes for American workers and American Families

• The average American household will see a $2,100 tax cut next year.
• By permanently doubling the standard deduction, there are no taxes on the first $15,000 earned by a single taxpayer or $30.000 for a married couple in 2025.

FACT: If the Tax Cuts and Jobs Act (TCJA) had not been extended through the One Big Beautiful Bill, rates would have gone up across the board

• Standard deduction for single filers would have gone down from $14,600 (TCJA) to $8,300.
• Standard deduction for joint filers would have gone down from $29,200 (TCJA) to $16,600.
• The Child Tax Credit would have decreased from $2,000 (TCJA) to $1,000 per qualifying child.

FACT: The OBBB cuts taxes for American Businesses Large and Small

• Small businesses will receive a permanent 20% tax deduction.
• The small business deduction cuts taxes by $736 billion over 10 years.
• Provides full and immediate deductions for American business investment including research and development.
• Immediate & permanent business expensing will provide a $504 billion tax cut on investments in the U.S.

FACT: The OBBB slashes spending:

• OBBB reduces federal spending by $1.212 trillion over 10 years and cuts spending by $170 billion in 2025 alone.
• Spending cuts over 10 years result in deficit reduction totaling $3,570 per American.

Additional Tax Benefits in the OBBB:

NO TAX ON TIPS OR OVERTIME

Tips make up18 percent of Nebraska restaurant workers' income. These and other hard-working employees who earn tips and overtime will no longer have their tips or overtime pay taxed by the federal government.

NO TAX ON SOCIAL SECURITY

After struggling under record inflation, Nebraska seniors will now pay no taxes on their Social Security benefits.

No taxes on tips, overtime, and Social Security combined with more money for the Child Tax Credit will have real economic relief for Nebraska workers and families. Tax cuts will provide economic certainty and financial security to those who need it most.

When income is taxed less and workers keep more of their own paycheck, they reinvest in their homes, businesses, families, and communities.Tax cuts help all Nebraskans.

As always, it is a pleasure to serve the 2nd District of Nebraska. If you have a question, concern, comment or need help with a federal agency, don’t hesitate to reach out. https://bacon.house.gov/contact/