FAQ: The One Big Beautiful Bill, Explained
Our experts explain how this major tax legislation may affect you and how policymakers can better improve the tax code.
24 min read
Featured Articles
2026 Tax Calculator: How the One Big Beautiful Bill Act’s Tax Changes Will Affect You
How will recent federal tax changes affect you?
4 min read
The One Big Beautiful Bill Cuts Taxes Across the US, New Analysis Finds
We estimate the OBBBA will reduce federal taxes on average for individual taxpayers in every state. Across all individual tax filers throughout the US, the average tax cut per taxpayer will be over $3,700 in 2026.
4 min read
One Big Beautiful Bill Act Tax Policies: Details and Analysis
Our analysis of the major tax provisions included in the OBBBA finds it will increase long-run GDP by 0.7 percent. The major tax provisions will reduce federal tax revenue by nearly $5.2 trillion between 2025 and 2034, on a conventional basis.
12 min read
The Good, the Bad, and the Ugly in the One Big Beautiful Bill Act
The One Big Beautiful Bill Act makes many of the individual tax cuts and reforms of the TCJA permanent. It improves upon the TCJA by making expensing for R&D and equipment permanent. However, for the most part, it does not include further structural reforms, and instead introduces many new, narrow tax breaks to the code, adding complexity and raising revenue costs.
7 min read
State Tax Implications of the One Big Beautiful Bill Act
For Congress, work on the One Big Beautiful Bill Act is done. But in state capitols, the work has not yet begun. Many of the tax changes in the federal reconciliation act flow through to state tax codes—automatically in some states, and subject to an update in states’ Internal Revenue Code conformity date in others.
39 min read
Federal Tax System Remains Highly Progressive After the OBBBA
The 2017 Tax Cuts and Jobs Act (TCJA) simultaneously increased tax progressivity and decreased redistribution in the tax code. Our estimates suggest the OBBBA similarly combines a more progressive tax system with a lower degree of tax redistribution.
4 min read
What to Expect from the New OBBBA Expensing for Manufacturing Structures
Expensing for manufacturing structures is a significant step forward for the tax treatment of structures, but it could be improved in several ways.
7 min read
The One Big Beautiful Bill, Explained
We break down the House GOP’s One, Big, Beautiful Bill—a sweeping tax package designed to extend key parts of the 2017 Tax Cuts and Jobs Act before they expire in 2026.
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Lessons From European Geoeconomics & The Future Of International Tax Policy
European policymakers would be wise to refocus tax and trade policies on what is good for Europe rather than trying to change policies in countries beyond European borders. Meanwhile, the Trump administration would be wise to recognize that the transatlantic relationship is a geoeconomic asset that can be mutually beneficial.
How Does the Additional Senior Deduction Compare to No Tax on Social Security?
The increased senior deduction with the phaseout would deliver a larger tax cut to lower-middle- and middle-income taxpayers compared to exempting all Social Security benefits from income taxation and would not weaken the trust funds as much. But given the temporary nature of the policy, it would increase the deficit-impact of the reconciliation bills without boosting long-run economic growth.
3 min readState Individual Income Tax Rates and Brackets, 2026
Individual income taxes are a major source of state government revenue, accounting for more than a third of state tax collections. How do income taxes compare in your state?
9 min read
Simplicity Is Still Missing from Michigan’s Tax Debate
Michigan’s tax code remains too complex, and taxpayers should be asking for a system that bends toward simplicity, not the other way around.
Here’s Why Corporate Taxes May Appear Lower After the OBBBA
Near-term corporate tax payments may fall, and financial statement data may appear unusual, but over time, revenues will stabilize, book-tax gaps will fade, and the US tax code will incentivize domestic investment.
8 min read
State Tax Trends to Watch in 2026
State lawmakers around the country have begun their legislative sessions, and many are considering tax reform. This piece highlights some of the areas on which they are likely to focus.
4 min read
Trump Tariffs Threaten to Offset Much of the “Big Beautiful Bill” Tax Cuts
The tariffs now in effect threaten to offset much of the GDP growth from the tax cuts, while falling short of paying for them.
3 min read
One Big Beautiful Bill Act Tax Policies: Details and Analysis
Our analysis of the major tax provisions included in the OBBBA finds it will increase long-run GDP by 0.7 percent. The major tax provisions will reduce federal tax revenue by nearly $5.2 trillion between 2025 and 2034, on a conventional basis.
12 min read
New York Should Be Cautious About Governor’s Near-Sighted Budget
Although New York’s 2027 budget proposal avoids tax increases on income, sales, and property taxes, it is full of policy proposals that threaten the long-run integrity of the state’s finances and harm New York taxpayers.
5 min read
Yes, You’re Getting a Bigger Tax Refund. But That’s Not the Whole Story.
Economic policy in 2025 came with historic highs but also disappointing lows.
Will the OBBBA Tax Cuts Grow the US Economy?
Over the long run, OBBBA’s permanent extension of lower marginal tax rates on work, saving, and investment lays a solid foundation for stronger economic growth.
6 min read
Cut the Income Tax, Not Taxes on Tips and Overtime
Though politically popular, “no tax on tips and overtime” is a short-sighted gimmick that risks derailing West Virginia’s path to prosperity.
Tax Refunds and the One Big Beautiful Bill Act
When taxpayers file their 2025 tax returns in 2026, many will see larger refunds than in recent years. That’s due to the One Big Beautiful Bill Act (OBBBA), which reduced individual income taxes for 2025 by an estimated $129 billion.
4 min read
2026 Tax Brackets
Explore the IRS inflation-adjusted 2026 tax brackets, for which taxpayers will file tax returns in early 2027.
5 min read
Trump Tax Policy Shift Toward Stability Must Stay the Course
The Trump administration has rightly shifted its focus from pursuing legislative changes to implementing new permanent rules. But in this shift, it’s crucial that the White House doesn’t lose focus on the larger task at hand.
Movers and Shakers in the International Tax Competitiveness Index
For the past 12 years, the International Tax Competitiveness Index has examined which countries have truly embraced tax competitiveness and which ones have lagged behind. Our experts examine how country rankings have changed over time and identify the largest movers and shakers.
5 min read
2025 Tax Review | What OBBBA Changed, the Impact of Tariffs, and What’s Next
In this episode, we break down what the OBBBA did, walk through our projections, and zoom out to other defining fights of 2025: Trump’s “Liberation Day” tariffs, the Supreme Court challenge over presidential tariff power, and the growing wave of property tax revolts across the states.
Quite the Skewed Business Subsidy: QSBS Exclusion Is a Poor Way to Encourage Investment
QSBS exclusion distorts business choices by influencing business structure choices, timing of expansion, and investor’s decisions on capital allocation.
5 min read
How Does the OBBBA Impact Debt, Deficits, and Tax Revenue?
Our modeling indicates the One Big Beautiful Bill Act (OBBBA) will boost economic growth but increase deficits, leading to record high debt in 2028 that rises to 124 percent of GDP by 2034.
7 min read
Some States Will Tax NCTI Despite Prior Votes to Exempt International Income
Several states have decoupled from GILTI by name rather than statutory citation. Lawmakers in those states should amend these statutes to ensure that their tax code does not accidentally incorporate a much more aggressive tax on international income than the tax from which they previously decoupled.
6 min read