What's Happening?
The One Big Beautiful Bill Act introduces significant changes to the U.S. tax code, including the elimination of personal exemptions and an increase in the standard deduction. The Act also raises the cap on state and local tax deductions and introduces a new
deduction for seniors. These changes aim to simplify tax filing and provide relief to certain demographics, though they may also impact high-income taxpayers by limiting itemized deductions.
Why It's Important?
The Act's provisions could lead to a shift in tax planning strategies for many Americans. While the increased standard deduction simplifies filing for some, the elimination of personal exemptions and limits on itemized deductions may require others to reassess their financial strategies. The changes could particularly affect high-income earners and those who previously relied on itemized deductions to manage their tax liabilities.
