Upticks: The One Big Beautiful Bill Act: What it Could Mean for Your Money and Future

By Luke Sullivan on July 10, 2025

A sweeping new tax law is here—and it’s packed with changes that could reshape your financial plan. Jake and Cory break down the most impactful updates from the 870-page “One Big Beautiful Bill,” including tax bracket changes, new deductions, retirement perks, and even a government-funded account for newborns. They cover what matters most with practical insights, smart planning tips, and a few opinions, too.


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Read an overview of the conversation below

Tax Brackets and Standard Deductions

One of the most impactful changes introduced in the “One Big Beautiful Bill Act” is the permanent extension of the Tax Cuts and Jobs Act (TCJA) income brackets. Originally set to sunset at the end of 2025, these brackets will now remain in place, eliminating a major source of uncertainty for taxpayers.

Cory emphasized the significance of this change: “The uncertainty around it has been removed. Tax brackets aren’t going to change at the end of this year like they were going to if this bill didn’t pass.” Jake added, “To be clear for our audience, many people’s tax brackets were set to increase starting in 2026. Now that is not going to happen.”

In addition to the tax bracket extension, the standard deduction has been increased. For 2025, the deduction rises to $15,750 for single filers and $31,500 for married couples filing jointly. This change, while not dramatic, continues the trend of encouraging standard deduction use over itemization. As Cory noted, “The higher the standard deduction is, presumably, the less people there are that are itemizing on their tax returns.”

Tips, Overtime, and Auto Loan Tax Deductions

The bill introduces several provisions aimed at providing relief to working-class Americans. One of the most notable is the exemption of up to $25,000 in tips and overtime from federal income tax. This change is particularly beneficial for service industry workers and those in roles with variable hours.

Jake shared a real-world example: “I was talking to the UPS driver that comes by our office, and he was talking about how much of a game changer that’s actually gonna be for him.” However, this benefit comes with income phase-outs—$150,000 for single filers and $300,000 for married couples—and is not available to those filing separately.

Another provision allows for the deduction of up to $10,000 in auto loan interest, provided the vehicle is assembled in the U.S. and purchased between 2025 and 2028. This aims to support domestic manufacturing while offering financial relief to car buyers. “If you’re in the market or going to be in the market for a new vehicle, this is something to consider,” Cory advised.

Retirees and older Americans also stand to benefit from the new legislation. A standout feature is the “senior bonus deduction,” which provides an additional $6,000 deduction for individuals aged 65 and older, or $12,000 for couples. This deduction is phased out at $75,000 for single filers and $150,000 for joint filers.

Retirement and Senior Benefits

Cory explained the rationale: “This senior bonus deduction is a way to hopefully help more people pay less income tax on their Social Security benefits.” While it doesn’t eliminate taxes on Social Security, it can significantly reduce the burden for many retirees.

The estate tax exemption has also been increased to $15 million per individual, or $30 million for married couples. While this affects a smaller segment of the population, it’s a critical planning point for high-net-worth individuals. “Many of our clients will be over that $15 or $30 million mark in 20 or 30 years,” Jake noted, emphasizing the importance of long-term estate planning.

Education and Healthcare

The bill expands the scope of 529 education savings plans, allowing funds to be used for tutoring and caregiver certifications. This change reflects a broader definition of educational needs and supports workforce development in caregiving professions. “You can use a 529 to get a caregiver certification to help elderly people,” Jake explained. “That’s awesome.”

However, not all changes are beneficial. One of the more concerning developments is the rollback of expanded Affordable Care Act (ACA) subsidies. Starting in 2026, subsidies will revert to pre-2021 levels, reinstating the 400% federal poverty level cliff. Cory clarified, “If someone is not on Medicare yet and they are getting any kind of ACA subsidy, those subsidies are going to be reduced.”

This change could significantly increase healthcare costs for early retirees and others relying on ACA coverage. “Healthcare cost planning after this year for people who are not yet on Medicare is really something to check in on in 2025,” Cory advised.

Political Implications and Fiscal Concerns

While the bill introduces numerous benefits, it also raises serious questions about fiscal responsibility. The legislation includes a $5 trillion increase in the national debt ceiling, prompting concern from financial professionals like Cory. “Nobody in Washington, D.C. has any desire to get the budget or the debt under control,” he stated bluntly.

Jake offered a counterpoint, suggesting that tariffs and spending cuts might offset some of the costs. However, Cory remained skeptical: “The government is going to spend more money on servicing the debt than on the military and defense this year. Is that sustainable?”

The conversation concluded with a broader reflection on the motivations behind the bill. Jake speculated, “I think they’re doing it to keep the power. For me, government is all about power. And if you make the people happy, they vote you in.” Cory agreed that while the bill may offer short-term relief, it fails to address the long-term structural issues facing the U.S. economy.

All information sourced from Congress.gov as of July 10, 2025

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Thank you for tuning in, we hope you have a great week!


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