Tax bill provides significant benefits to wealthier households, while middle-income families also see tax relief.

The White House and Republican leaders promote the bill, highlighting wins for everyday Americans, including improvements to the standard deduction, child tax credit, and new deductions for tips and overtime expenses to reduce taxable income.

The bill boasts the potential for an annual boost of up to $10,000 in take-home pay for a family with two kids, with tax cuts benefiting most taxpayers. However, wealthier taxpayers stand to gain more from provisions like a higher estate tax and business expensing.

Analyses from the Tax Foundation, Tax Policy Center, and Penn Wharton Budget Model confirm a pattern where higher-income households benefit the most from tax cuts, with the top 20% receiving an average of $12,500 in tax cuts.

Households earning between $67,000 and $120,000 annually could see a $1,780 tax cut next year, while the top 20% could receive up to $12,500 in tax relief. The bill’s impact varies based on income levels, with wealthier households benefiting more.

The bill introduces tax breaks for tipped workers, offering deductions of up to $25,000 for professions like hairdressers and bartenders. Additionally, the bill provides a deduction for overtime pay, potentially saving workers between $1,400 and $1,750 per year.

Car buyers could benefit from a deduction of up to $10,000 on auto loans, aimed at reducing interest payments for new cars. However, the deduction is limited to loans for new vehicles assembled in the U.S. and is available through 2028.

Homeowners can now deduct up to $40,000 for state income and local property taxes, a significant increase from previous limits. The deduction will rise with inflation until 2029 before reverting to $10,000 in 2030, benefiting residents of high-tax areas.

Individuals aged 65 and older are eligible for a $6,000 deduction, potentially exceeding taxable Social Security benefits for 88% of recipients. The deduction aims to alleviate tax burdens for seniors on fixed incomes and runs from 2025 to 2028.

The bill raises concerns over its impact on social programs like Medicaid and SNAP, tightening eligibility rules and increasing verification requirements. Critics fear that the changes could leave millions without health insurance by 2034.

The bill faces criticism for its impact on the national debt, raising concerns among lawmakers and financial experts. Increased debt levels could lead to higher borrowing costs for consumers, affecting interest rates on mortgages, car loans, and other forms of credit.

Read more at Yahoo Finance: Here are the winners and losers in Trump’s big bill