(CNN) — President Donald Trump’s megabill is now a megalaw with wide-reaching implications for many Americans.
Trump has touted that his tax and spending law will boost the economy and put more money in people’s pockets, especially for hourly workers.
However, as is the case with most federal laws — especially one that’s nearly 900 pages long and peppered with plenty of eleventh-hour additions — the outcomes aren’t always that cut and dry.
The law’s passage “happened overnight and on a holiday weekend,” said Nisha Verma, a partner in Dorsey & Whitney’s labor and employment practice. “This will change the lives of Americans, but exactly how still has to be examined.”
Here’s a quick look at some of the more notable provisions that could have a significant impact on American workers:
No tax on tips
In the 2024 presidential campaign, both Trump and Vice President Kamala Harris supported tax-free tips. However, some tax experts and economists balked at such proposals, claiming that costs could outweigh the benefits and that such a law could have ripple effects such as keeping a lid on lower-earning workers’ wages and creating a deduction that could be abused.
Under the One Big, Beautiful Bill Act, workers who received qualified tips will be able to deduct $25,000 of those tips annually from their taxable income. The provision, which has an income cap of $150,000 ($300,000 in the case of a joint return jointly), will be retroactive in a way, because it will apply to the 2025...
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