Congress is at a pivotal point in rewriting the tax code. The latest bill out of the House Ways and Means Committee, informally referred to as the “One Big Beautiful Bill”, seeks to extend, revise, and consolidate a wide range of tax provisions. While comprehensive in scope, the bill’s sweeping ambition may also be its greatest obstacle.

At the heart of the proposal is the extension of many of the provisions in the 2017 Tax Cuts and Jobs Act (TCJA), including:

• The continuation of reduced individual tax rates
• The expanded standard deduction
• Continued and increased deduction for qualified business income
• Increased estate and gift tax exemption amounts.

These changes, originally scheduled to sunset at the end of 2025, have become central to the conversation around ongoing tax relief and economic uncertainty. Also included in the bill is an extension of the child tax credit, with inflation indexing beginning in 2029, as well as a proposed expansion of the 1099 requirement threshold back to a more manageable level.

One of the most talked-about provisions is the proposed increase of the state and local tax (SALT) deduction, from $10,000 to $30,000. While this offers some relief to taxpayers in high-tax states, the cap remains a flashpoint among legislators, especially those representing constituencies who feel the cap penalizes their regional cost structure. Meanwhile, green energy tax credits are on the chopping block and the bill proposes sunsetting several clean energy incentives by 2031. The elimination of these credits is being framed as a “pay-for”, though the revenue math behind the bill remains under scrutiny.

Notably, the legislation also proposes curtailing tax, through 2028, on two categories of income that are particularly important to working families and retirees; tips and overtime pay. These inclusions have gained quiet bipartisan interest and may prove to be some of the bill’s most enduring and publicly popular features; despite how the broader package is received.

What’s Next on the Hill

The bill is being advanced through budget reconciliation which gives Republicans the ability to pass the measure with a simple majority vote. However, that same procedural tool means that every detail must thread a political needle and that any single point of contention among Republicans could stall the entire process. With an estimated cost approaching $5 trillion over a decade, the bill's lack of clear offsets or spending reductions has already sparked significant debate within the budget committee.

The path forward is far from certain. Lawmakers will need to balance public-facing wins, such as tax relief for families and small business owners, with less visible structural trade-offs. Still, the direction is clear; most of the favorable tax treatment that was set to expire this year is now positioned to continue. For individuals and business owners, that continuity opens the door to more confident long-term planning—assuming action is taken before the window closes.

Tax reform isn’t coming. It’s already here and shifting in real time as Congress negotiates what stays, what fades, and what quietly gets reshaped in the process. If you have questions about how this might impact you or you haven’t begun adjusting for what’s ahead, we’re here to help.

Please consult with an attorney or a tax or financial advisor regarding your specific legal, tax, estate planning, or financial situation. The information in this article is not intended as legal or tax advice.