U.S. House Passes the One Big Beautiful Bill

The U.S. House of Representatives has passed the One Big Beautiful Bill Act (OBBB), a comprehensive piece of legislation proposed by former President Donald Trump. Following a tight vote in the Senate, where a tie was broken by Vice President JD Vance, the bill now returns to the upper chamber for further review, where it may still undergo modifications.

The OBBB consolidates several Republican government priorities in the areas of taxation, energy, and immigration. On the tax front, the bill introduces measures that overhaul the current system and expand benefits for specific groups. Key provisions include:

·      Estate and gift tax exemption raised to $15 million per person

·      Permanent 20% deduction for pass-through businesses (IRC §199A)

·      New cap for state and local tax (SALT) deductions: $40,000

·      Allowable deductions for tips, overtime, and auto loan interest

·      Child tax credit increased to $2,500 per dependent

The bill also dismantles clean energy incentives established under the previous administration, repealing or accelerating the expiration of various tax credits for renewable energy production and investment. It further imposes restrictions on companies with ownership by foreign entities deemed “of concern” (FEOC), which could hinder the development of new sustainable projects.

On immigration, the OBBB allocates funds for mass deportations, the resumption of border wall construction, and changes to social programs that would likely reduce available benefits. The bill also includes a proposed increase to the public debt ceiling, despite projected fiscal deficits, and suggests measures that could constrain the jurisdiction of federal courts.

If passed in its final form, the OBBB would have significant implications for investors, businesses, and individuals with economic or immigration-related interests in the United States, requiring a reassessment of international planning strategies.