The One Big Beautiful Bill permanently extended tax cuts from the 2017 law and added targeted new cuts for tips, overtime and Americans 65 and older. The 2025 law ranks among the largest tax cuts since 1980, measured either third-biggest or tied for seventh depending on the yardstick. Most of the law's benefit reflects extensions of existing provisions, so many taxpayers could see only modest tax changes when current provisions shift in 2026. The analysis compared cumulative five-year tax savings as a share of GDP to normalize across time. The largest five-year tax cut measured was 1981's legislation, at 3.5% of GDP.
The law permanently extended tax cuts from a 2017 law Trump signed, which would have expired at the end of 2025 had Congress not reauthorised them. The law also included some new tax cuts, including for tips, overtime and Americans 65 and older. Speaking in Peachtree City near Atlanta, Vance said, We had the biggest tax cut for families that this country has ever seen. The tax cuts were significant, but they weren't the biggest in US history, which was
The tax cuts were significant, but they weren't the biggest in US history, which was a phrase Trump has often used to inaccurately describe his 2017 tax cut law. The 2025 tax cuts rank either third-biggest since 1980 or tied for seventh, depending on the yardstick. At the same time, many Americans could see relatively modest changes to the taxes they owe starting in 2026, because the 2025 law mostly extended existing tax cuts.
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