MILWAUKEE (CBS 58) -- President Donald Trump signed a sweeping tax and spending bill into law on Friday, July 4 that makes his 2017 tax cuts permanent and trims federal benefits.
Randy Winkler of Drake & Associates joined us on Wednesday, Aug. 27 to outline how the "Big Beautiful Bill" could impact people’s budgets.
He said seniors will see a new $6,000 deduction if they make less than $75,000 a year, while many workers who delay retirement or pick up part-time jobs could benefit from tax breaks on tips and overtime pay. On average, households are expected to save about $2,900 annually under the permanent tax brackets.
At the same time, the law adds costs elsewhere. Some Medicaid patients will face $35 co-pays, and food assistance programs will have new work requirements. According to the Congressional Budget Office, the poorest households could end up paying more each year while higher earners receive the largest tax savings.