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President Trump JUST Signed The LARGEST Tax Cut In American History – What’s Inside!
What is being called the Largest Tax Cut in American History was just signed into law by President Trump!
Of course, this is courtesy of the passing of the One Big, Beautiful Bill on this historic July 4th.
But now that the bill is finally passed into law, what does it mean for YOU?
What kind of tax savings or other benefits can you look forward to?
Earlier this week we looked at earlier House and Senate versions of this Bill, but now I want to look at the final law.
And for that we turn to one of the largest financial YouTubers out there, Graham Stephan, who posted this video which I thought was excellent.
You can watch here or scroll down for the full text transcript — Enjoy:
Timestamps:
00:00 – Trump Tax Plan Has Been SIGNED
01:26 – Tax Cuts And Jobs Act Has Been Extended
01:59 – No Tax On Tips
02:57 – No Tax On Overtime
04:00 – $40,000 SALT Deduction
05:14 – SALT Deduction Loophole
06:17 – Save Money On Your Phone Bill!
07:51 – 6 Substantial Tax Savings
10:43 – Auto Loan Deductions
12:30 – No Tax On Social Security
13:13 – The “Free” $1000
14:15 – The “Big, Ugly Bill” Downsides and Cost
Summary:
Trump’s new tax plan is signed into law, extending key provisions of the 2017 Tax Cuts and Jobs Act through at least 2030.
No tax on tips for workers in tipped industries (e.g., restaurants, hospitality) between 2025–2028, up to $25,000. Phases out for higher earners.
No tax on overtime pay, with deductions allowed for the overtime portion of wages. Subject to income caps and deduction limits.
SALT (State and Local Tax) deduction cap raised from $10,000 to $40,000 through 2029, adjusted for inflation. Phases out for incomes over $500,000.
SALT workaround for S-Corp owners remains legal, allowing high earners in high-tax states to deduct state taxes via their corporation.
Six other key tax provisions include:
Current income tax brackets (12–37%) remain through 2029.
Mortgage interest deduction up to $750,000 loan value.
Bonus depreciation made permanent—100% write-off in year one for qualifying business expenses.
Increased standard deduction: $15,750 (single), $31,500 (married).
20% small business deduction for pass-throughs made permanent.
1099 reporting threshold raised from $600 to $2,000.
New car loan deduction: Personal car loan interest (up to $10,000/year) is now deductible if the car is U.S.-made. Phases out for high earners.
$7,500 EV tax credit eliminated early, now set to expire Sept 30, 2025 instead of end of year.
Senior citizens (65+) get an additional $6,000 standard deduction from 2025–2028, phased out above certain income levels.
New $1,000 Trump account: Every child born between 2025–2028 gets a $1,000 government-funded investment account, with optional parental contributions.
Projected cost: $2.9 trillion over 10 years, with an estimated $4.5 trillion drop in tax revenue. Critics say it adds to the debt; supporters argue it boosts growth.
Top 50% of earners pay 97% of income taxes, so most benefits naturally go to top taxpayers. Some say bottom earners may see slight increases.
Work requirements added to Medicaid may reduce coverage for some. Supporters say it promotes work; critics say it harms vulnerable families.
New gambling rule caps deductible losses at 90%, which may create taxable income on losses—seen as controversial.
FULL TRANSCRIPT:
Graham Stephan
Trump Tax Plan Has Been SIGNED
What’s up you guys? It’s Graham here.
So, you better prepare yourself because starting today, it is 100% confirmed that we are seeing some of the biggest tax breaks and cuts of the last decade.
That’s right. Trump’s new tax plan is now officially signed into law. And I gotta say, if you make any amount of money whatsoever, you need to hear exactly what’s inside because it could either end up saving you or costing you a ton of money, all depending on how fast you’re able to act.
That’s why if you want to hear about all the new changes that are about to directly impact you, along with how you could receive no tax on tips, no tax on overtime, $1,000 for every child, car loan write-offs, and massive $40,000 state tax deductions among a variety of other initiatives—here’s everything that you need to know and more, along with one little secret that could instantly save you thousands of dollars that almost nobody knows about.
Although before we start, I don’t usually do this, but as a quick disclaimer, when I was researching this video, it was almost impossible to find sources that were not incredibly biased.
Like one side says it’s a disgusting abomination that ends America’s time as a great power. While the other side says it’s the best thing ever and it’ll spark economic growth.
So if you appreciate just hearing a neutral stance with just the facts, it would mean the world to me if you hit the like button or subscribe if you haven’t done that already.
It actually makes a huge difference and it helps me more than you could imagine.
And as a thank you for doing that, here’s a picture of a blue tang. So, thanks so much and also big thank you to Helium Mobile for sponsoring this video.
But more on that later.
All right, so to start, let’s just get right into it.
For those unaware, back in 2017, Donald Trump passed what’s called the Tax Cuts and Jobs Act, which lowered taxes for practically everybody across the board.
It reduced corporate income taxes from 35% down to 21% and it gave some pretty substantial write-offs for nearly anyone who was self-employed.
However, those were scheduled to expire at the end of this year if nothing was done.
Except, as I’m sure you’ve seen, something is done. And now we have a brand new tax plan that’s going to take place through 2030 and beyond.
So here’s what’s inside.
First, let’s start with one of the most popular items, and that would be no tax on tips.
This one was a huge part of Trump’s campaign promise, and believe it or not, he was actually able to push it through, although with a few slight variations.
Like as much as people would love for this to be permanent, the no tax on tips clause is only applicable from 2025 through 2028, up to a maximum of $25,000.
Now, in terms of who qualifies, this applies to those who work in traditionally tipped industries like in restaurants, hospitality, bartending, or taxi services.
And you could still claim the benefit even if you receive a W-2 paycheck.
On top of that, tips in this case will also include both cash and credit card transactions, which is good for anyone who is worried about that.
However, the benefit of this will begin to phase out for higher earners.
So if you make over $150,000 single or $300,000 married, you’re not going to be eligible for the full benefit, and it’s unclear about whether or not this is going to be available after 2028.
Kind of like the next one, which is going to be no tax on overtime.
Here’s the deal. If you work overtime, as in more than 40 hours in a week, that overtime pay could now be deducted against your total income, thereby reducing your taxes by that exact same amount.
Separate from that, it’s also important to clarify that the tax-exempt status only refers to the overtime pay portion of your paycheck and not the entire amount.
So if you normally make $20 an hour, but with overtime you make $30, that extra $10 would be considered the tax-free portion and not the entire amount, if that makes sense.
Now, in terms of who’s eligible, this does phase out if you make more than $150,000 single or $300,000 married.
And there are limits to how much you’re able to deduct, which is capped at $12,500 to $25,000, respectively.
Of course, critics are quick to point out that only 8% of hourly and 4% of salary workers receive or are eligible for overtime pay.
So this only applies to a very small subset of workers, but if it does apply to you—great, more money to you.
However, speaking of critics, this next one has been the most controversial for the last few years, and that would be the new $40,000 SALT deduction.
See, prior to the 2017 Tax Cuts and Jobs Act, state and local taxes could be completely deducted from your federal income taxes.
So, as an example of this, if you lived in California and paid $30,000 in state income taxes along with $20,000 in property taxes, that $50,000 could be completely deducted from what you owe the federal government.
But beginning in 2018, all of that changed. Instead of being able to deduct the full $50,000, the new tax plan capped state and local tax deductions to just $10,000 total, regardless of if you were single or married, and not adjusted to inflation—leaving residents in states like California, New Jersey, and New York paying a lot more money than they did before.
Except now, that’s beginning to change. Starting in 2025 and running all the way through 2029, state and local tax deductions have been quadrupled to $40,000, increasing with inflation every year thereafter.
However, as a way to prevent high-income earners from getting the majority of this benefit, this tax plan will begin to phase out these deductions once you begin earning above $500,000 a year adjusted to inflation.
Meaning, if you make more than this amount, your deductions begin to shrink back down to its original $10,000 limit.
Although, here’s a quick tip for anyone living in a high-income tax state who makes over $500,000 a year.
And seriously, this is worth a like and subscribe because if you didn’t know about this already, it could easily save you tens of thousands of dollars.
And it’s what’s called the SALT cap workaround. Here’s an overly simplistic view of exactly how it works.
Instead of an S-Corp owner paying themselves the full distribution and then being required to pay state taxes on a personal level, the S-Corp will pay its portion of state taxes as a deduction since that’s not limited by the 10 or $40,000 SALT cap.
And then that credit will transfer to you on the individual level, essentially allowing you to use the full amount that you pay for state and local taxes as a tax write-off.
Don’t believe me? Well, so far 30 states have already approved the strategy and the IRS even issued their guidance on how to proceed with it.
On top of that, the Senate was considering language that would close this loophole, but they didn’t do it.
Beyond that, though, I’m going to be honest. These tips and tricks are really just the very beginning because there are others that you absolutely have to be made aware of, especially since it’ll have a direct impact on you starting today.
Here’s the thing. With all of these tax changes soon going into effect, it’s more important than ever to find savings wherever we can.
Like, most of us have just gotten used to spending over $100 a month for phone service. But there’s actually a way to pay way less without giving up good coverage.
All thanks to our sponsor, Helium Mobile.
They’ve got phone plans starting at $0 a month with no contracts and no credit card needed.
It’s literally just a free phone plan, which is perfect if you’re a light user or just want a second SIM for additional coverage.
All you need to do is share your anonymized location data, which Helium Mobile doesn’t sell and only uses to improve coverage throughout the country.
They’ve even got an unlimited plan with calls, texts, and data for just $30 a month—no contracts and you could cancel at any time.
And if you’ve got kids, there’s also the new Sprouts plan for only $5 a month, which comes with 3 gigabytes of data, unlimited talk and text, nationwide coverage, and you stay completely in control of their plan and how they use it.
Helium Mobile is able to do all of this because they combine nationwide 5G coverage from T-Mobile with a community-built network powered by everyday users.
Plus, what makes Helium Mobile different is that they actually reward you for using your phone.
In this case, you could earn cloud points for doing simple things like referring your friends or sharing anonymized data.
And after 90 days, you could spend those points on gift cards from places like Amazon, Apple, Sephora, and tons more—all from within the Helium Mobile app.
So, if you want to try it out, even as just a free option, feel free to use the link down below in the description and use the code Graham to get $10 in cloud points for gift cards.
Again, the link is down below in the description to get started today.
Thank you so much. And now, let’s get back to the video.
All right. So, in terms of the brand new tax plan, there are six more major items that you have to be made aware of, with the first being lower tax rates.
Essentially, the current tax brackets between 12 and 37% will remain as they have been since 2018 and will increase with inflation every year through 2029.
This means no more 39.6% tax bracket, and after-tax income for nearly all Americans will be going a little bit higher.
Two, we have the mortgage interest deduction. This allows the interest up to the first $750,000 worth of a mortgage on a primary residence to be written off of your income.
So, as an example of this, if you have a $750,000 mortgage and you pay 6% interest, that is $45,000 that you could potentially use to reduce your income.
On top of that, mortgage insurance premiums could also be eligible for a deduction.
Three, we got a big one—bonus depreciation is back.
Honestly, from this entire plan, this one is the biggest tax write-off for high-income earners. And if you fall into the right industry, it could save you a ton of money.
Like for those unaware, in 2018, Trump made it possible for certain business owners to deduct 100% of qualifying expenses against their income in the first year it’s placed into service, saving them a ton of money.
And even though this was scheduled to phase out and expire, he just made it permanent.
With this new tax structure, 100% bonus depreciation is here again indefinitely, which means business-used cars that weigh more than 6,000 lbs once again become a 100% tax write-off.
Planes could be a 100% tax write-off, and certain real estate expenses could be bonus depreciated in their first year against all income.
So, it’s pretty incredible.
But after that, we also have four—an increased standard deduction.
In this case, the standard deduction is raised to $15,750 single or $31,500 for married filing jointly effective in 2025.
So even if you don’t qualify for anything else on this list, there you go. That is a reduction of your income right off the top.
Five, there’s also a qualified 20% small business deduction that’s back.
This allows eligible pass-through entities like an S corporation to take a 20% deduction right from their top-line revenue.
And now it’s officially been made permanent, effectively giving anyone who qualifies an instant 20% deduction indefinitely.
And six, we now have the threshold for a 1099 reporting going from $600 in a year to $2,000 in a year.
This one has probably been one of the simplest, quietest wins of the entire bill.
Because prior to this, if you paid someone more than $600 in a year, you would have to issue them a 1099, get their tax information, and report that to the IRS.
But now that’s been increased to $2,000, saving a lot of people who pay for small jobs a lot of paperwork.
Now, even though most of these that we’ve discussed so far are existing that have either been increased or made permanent, these next few ones are something that we’ve never seen before—like this deducting interest on personal car loans.
Here’s just something to consider.
As of right now, the average car payment in the United States is $742 a month at an average interest rate of 6.35% with an average loan size of $41,572.
Typically, the interest you pay on something like this is not tax-deductible unless it’s used as a business expense.
But now—congratulations—it can be.
Starting this year and through 2028, you could now deduct the interest payments on personal used car loans up to $10,000 a year on top of the standard deduction if the car is manufactured in the United States.
In terms of who qualifies for this, this deduction is available for those who earn up to $100,000 a year single or $200,000 a year married, and then begins to phase out by $200 for every $1,000 you make above that amount.
So, if you earn over $150,000 to $300,000 single or married, you don’t get this.
Although, speaking of cars, there is one aspect of this bill that’s getting a lot of negative attention, and that would be the elimination of the $7,500 EV tax credit.
For those unaware, over the last few years, electric vehicles would qualify for a $7,500 tax credit if you make under $150,000 single or $300,000 a year married.
This meant that if you owed $7,500 or more in federal income taxes, they would give you all of that money back dollar for dollar just for buying an EV, which is crazy.
However, all of that is now coming to an end—sooner than expected.
Instead of initially expiring December 31st, 2025, it’s now scheduled to expire September 30th, 2025.
So, if you’re thinking about getting an EV and getting that $7,500 tax credit before it goes away, now is probably the last chance you’re going to have to do it.
On top of that, there’s a few other discounts that you should be made aware of, including senior citizen discounts.
Now, even though Trump initially promised no taxes on Social Security income, this proved to be way too difficult to implement.
So instead, they simply raised the standard deduction by $6,000 for those over the age of 65 through tax years 2025 to 2028.
From there, it phases out once you begin to earn over $75,000 a year single or $150,000 a year married.
Essentially, this could help shield some, if not all, of a person’s qualifying income from Social Security taxes, especially since not all Social Security income is taxed to begin with.
So yes, some people get a huge benefit while others get absolutely nothing from this if they make too much money.
Although, there is one more that we have to talk about, and that would be the brand new $1,000 Trump account.
With this, eligible children born 2025 through 2028 will receive a $1,000 credit funded by the U.S. government into an account that could then be invested.
The goal here is that with compound interest, the $1,000 would grow to a significant amount in the future that could then be used towards qualifying expenses like a first-time home purchase, higher education, or startup expenses.
And if you don’t use any of that money towards qualifying expenses, then eventually it’s going to be cashed out and you’ll pay taxes on it as though it’s ordinary income.
On top of that, parents would also be able to contribute up to $5,000 a year for kids under the age of 18, essentially giving their children a huge head start when you account for the compound interest growth.
However, if parents really just wanted to do this, they could already go and create an investment account for their children who would then pay 0% taxes depending on their tax bracket.
So, to me, this one is a bit repetitive. But then again, a thousand bucks is a thousand bucks.
Although in terms of the impact that this tax plan is going to have over the next 10 years, keep in mind it’s not all sunshine and rainbows and it’s going to cost a significant amount of money—like $2.9 trillion.
Here’s the thing. I always like to remain neutral in my videos and show the perspectives of both sides so that that way you could come to your own opinion.
But when it really comes down to the cost, there’s just no way around it. This is going to be adding to the national debt.
Now, proponents of this say that extra spending will help boost the economy, and a little more debt in the big picture isn’t that big of a deal.
But critics argue that a $2.9 trillion spending spree is ridiculous and only hurts future generations, especially when it’s estimated to also reduce federal tax revenue by $4.5 trillion during that same time.
On top of that, some other people have reported that this tax plan is going to cost the bottom 20% of taxpayers $560 a year, while the top 20% get a boost of more than $6,000 a year.
Although, when you really look at this one and notice that the top 50% of taxpayers pay 97% of all income taxes, it makes sense that overall the top earners would see the biggest benefits since they pay the vast majority of all income taxes the U.S. receives.
Separate from that, there’s also been a lot of criticism that this bill would reduce Medicaid benefits by mandating work requirements, which might result in people losing coverage.
Supporters of this say that it simply encourages able-bodied adults to go and work while cracking down on abuse, but others argue it hurts low-income, vulnerable families who struggle with unstable employment.
There was also a very unusual amendment that was included last minute that caps gambling losses at 90%.
Meaning, if you gambled $10,000, lost all $10,000, and then won $10,000 back, you could only deduct 90% of your loss, effectively making it so that you have to pay taxes on $1,000 worth of a gain that you didn’t actually make.
Or I guess put more simply, gamblers are now going to have to pay a 10% tax on their losses, which makes absolutely no sense to me.
Seems like a money grab, but what do I know?
Overall though, this is quite a divisive bill. Some people think there are too many cuts, too few cuts, too much spending, too little spending.
There’s no winning.
But if you appreciate the face-value information just for what it is on the surface and how it impacts you, like I said, it would mean the world to me if you hit the like button or subscribe if you haven’t done that already.
This video took me more than you could imagine to put together.
So again, that’s all I ask for.
Thank you so much and until next time.
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