- One Big Beautiful Bill Act marks one year on July 4.
- Treasury said most taxpayers claimed tax relief under the law.
- Critics said the law also reduced access to Medicaid, food assistance.
JULY 4 MARKS one year since the "One Big Beautiful Bill Act," which the Trump administration calls the "Working Families Tax Cuts," became law. Supporters say the legislation reduced taxes for many households and businesses, while critics argue it did so by reducing funding for Medicaid and food assistance programs.
The U.S. Department of the Treasury said its review of the first tax filing season under the law found 97 percent of filers received a tax cut through deductions and credits for wages, children, tips, overtime and retirement. Treasury said 96 percent of recipients earned less than $200,000.
However, Democrats and policy analysts say the law's effects have been uneven.
According to CBS News, critics argue the legislation finances tax cuts that benefit many households and businesses by reducing programs serving lower-income Americans.
Andrew Lautz, Bipartisan Policy Center’s director of tax policy, told CBS News that "both can be true," saying many tax cuts target middle-class taxpayers while several provisions primarily benefit wealthier Americans.
The tax law was among several Trump administration policies that shaped the U.S. hospitality industry in 2025, alongside leadership changes and trade tensions.
The American Hotel & Lodging Association, said the law benefited workers and businesses. The law, H.R. 1, permanently extends President Donald Trump's 2017 tax cuts while introducing new tax incentives for businesses.
“For America’s hoteliers, this law spurred billions of capital investment empowering hotels to create more jobs, strengthen operations, and invest in their communities,” said Rosanna Maietta, AHLA president and CEO. “Importantly, it provided much-needed certainty small business owners have been seeking after years of rising operating costs.”
One year later…
Treasury Secretary Scott Bessent said the first filing season under the law resulted in lower taxes, larger refunds and higher take-home pay for eligible taxpayers.
“As promised, President Trump and the unity of a Republican majority in Washington delivered this landmark legislation that codifies the America First agenda and lays the foundation for a new era of American prosperity,” he said.
The department said the law prevented what it described as a $5 trillion tax increase and that taxpayers claimed more than $82 billion in tax relief through the April filing deadline, with additional claims expected from extension filers. It also said nearly 70 percent of filers receiving a tax cut earned less than $100,000.
Among filers who claimed one of the law's tax provisions, those earning $50,000 to $100,000 received an average tax cut of more than $815, while those earning $100,000 to $200,000 received more than $1,250 on average, Treasury said.
Treasury said more than 7.5 million filers claimed the No Tax on Tips deduction, averaging more than $7,000, with 90 percent earning less than $100,000 and 99 percent less than $200,000. More than 29 million filers claimed the No Tax on Overtime deduction, averaging more than $3,100, with 75 percent earning less than $100,000 and 96 percent less than $200,000.
The department also said more than 5.5 million Trump Accounts had been opened, including 1.4 million eligible for the $1,000 pilot contribution. It said nearly 40 million families claimed the enhanced Child Tax Credit, while more than 127 million filers claimed the permanently doubled standard deduction.
Some of the law's broader effects have also drawn criticism from Democrats, policy analysts and advocacy groups, particularly its changes to Medicaid and food assistance programs.
According to Forbes, more than 3.5 million people have lost access to food assistance as states implemented the new Supplemental Nutrition Assistance Program eligibility requirements, while about 500,000 people in New York were among the first to lose health insurance coverage under Medicaid and Affordable Care Act changes. Millions more could lose coverage as those provisions are phased in.
The legislation remained politically divisive one year after its enactment. Republicans say it delivered tax relief, increased take-home pay and provided certainty for businesses, while Democrats argue it made permanent tax cuts that disproportionately benefit higher-income households and corporations while reducing support for lower-income Americans.
In January, the Credit Card Competition Act returned to Congress to lower swipe fees in a market dominated by Visa and Mastercard. President Donald Trump backed the bill, saying it would curb excessive swipe fees.
