House Passes One Big Beautiful Bill Act Tax Package

The United States House of Representatives passed the One Big Beautiful Bill Act (OBBBA), a legislative package that pairs over $5 trillion in tax cuts with more than $1 trillion in reductions to food stamps and Medicaid.

A primary component of the act is a permanent 20% tax deduction for pass-through businesses, enabling owners to utilize lower individual tax rates instead of corporate rates. The legislation also establishes a deduction for new auto loan interest, which is projected to cost the federal budget between $5 billion and $10 billion annually over the next four years.

House Speaker Mike Johnson defended the tax cuts as a benefit for small business owners. However, critics and available data suggest the benefits primarily favor the wealthiest 1% of the population, specifically real estate developers and car dealers described as "Main Street millionaires."