Is the sky really falling or are those blue skies overhead?

On Friday, July 4, President Trump signed into law the One Big Beautiful Bill (OBBB). Every member of Connecticut's federal delegation (Sen Chris Murphy-D, Sen Dick Blumenthal-D, and Rep Himes-D) voted against this bill. Sen Murphy called it "immoral, a massive transfer of wealth from the poor and middle class," and Blumenthal called it "Un-American because it is so destructive to the middle class."

Tax Policy - The Bill extends the existing 2017 tax rates making them permanent. It doubles the standard deduction to $27,700 for joint filers helping middle income families. It raises the state and local tax (SALT) deduction from $10,000 to $40,000 benefiting filers in high tax blue states like CT.

It also adds new tax breaks for the middle class including no tax on tips, on overtime pay or on Social Security. It creates Trump Savings Accounts with $1,000 for babies born 2025-2028 that can be funded up to $5,000 annually. The child tax credit increases from $2,000 to $2,200 and it provides a $1,700 tax credit for donations to education scholarships enabling school choice through vouchers.

For pass-through business (small and freelancers), it increases the deduction to 23%. It allows 100% expensing of new business equipment and provides deductions for interest on loans when purchasing American-made vehicles.

Democrats decry this bill as "tax cuts for the rich." However, looking at the details, there is no doubt this is tax relief aimed at middle income families and small businesses.

Medicare and Food Stamps - The act imposes work requirements for able-bodied childless adults and removes benefits for undocumented immigrants. Does this tightening up of Medicaid and Welfare eligibility sound like "gutting" Medicaid and Food Stamps to you? Only if you are cheating the system or are here illegally.

Energy - The bill eliminates credits for electric vehicles and green home improvements. It phases out wind and solar credits. Does this phasing out of green energy tax credits sound like a "total ban" on renewable energy? No one is preventing you from buying an electric car or solar panels.

Between the Lines: While some Chicken Littles see the sky falling in this Bill, real American taxpayers see blue skies ahead.

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