First, the law is retroactive. That means even though it was signed mid-year, it applies to all of 2025. So when you file taxes next year, the new rules are already in play. One of the biggest changes? The tax brackets have shifted. If you earn over $50,000 a year, you’re likely getting a tax cut. For example, if you used to be in the 25% bracket, you’re now at 22%. If you were at 33%, you’re now paying 32%. These changes ease the load for higher-income earners—but they also adjust the brackets to make room for inflation and income growth.

Next, everyone—regardless of income—gets a bigger standard deduction. Single filers jump from $14,600 to $15,750. Married couples get a bump from $29,200 to $31,500. That’s a win if you don’t itemize your deductions. And for folks earning tips or doing overtime? There’s something new for you too. You can now deduct up to $25,000 in tip income and $12,500 in overtime—provided you earn under $150,000 (or $300,000 jointly).

But perhaps the most headline-grabbing part is the $1,000 “baby bonus.” If your child is born between 2025 and 2028, they’ll get $1,000 deposited into a government-backed investment account. The money is tied to the U.S. stock market and becomes partially available at age 18 for things like education, job training, or even a first home. Full access hits at age 30. It’s an incentive to grow the population—and maybe the economy along with it.

Seniors weren’t left out either. If you’re over 65 and earning less than $75,000, you’ll get an extra $6,000 deduction. That phases out between $75,000 and $175,000, and doubles for married couples. It’s designed to protect retirees from inflation and fixed-income pressures.

For business owners, there’s more good news. The corporate tax rate is staying at 21%, rather than rising to 35% in 2026 as previously feared. Section 179 is also expanded. You can now deduct $31,300 for heavy vehicles, and if you’re using that G-Wagon or pickup 50%+ for business, you get 100% bonus depreciation. Translation? That $100,000 truck may be a full write-off.

The bill also funnels $150 billion into defense, likely boosting the value of military contractors and defense stocks. More funding for deportation means private prison companies may benefit too. And if the baby boom comes? Expect the child care industry to rally.

But there’s a price: $3 trillion in new national debt over 10 years. The Congressional Budget Office warns that could cause higher inflation. While inflation hurts everyday consumers, it tends to lift asset prices—stocks, real estate, and rents. That benefits investors and landlords while squeezing working families.

So what do we do with all this? Learn. Adapt. If you understand how policy shifts impact markets, you can make better investment choices. That’s why I rely on tools like Market Briefs and Briefs Pro. Staying informed helps me protect my wealth and stay ahead of economic trends.

This bill isn’t just a tax tweak—it’s a roadmap. Whether it leads to opportunity or inequality depends on how well we understand the terrain.

Jaspreet Singh is not a licensed financial advisor. He is a licensed attorney, but he is not providing you with legal advice in this article. This article, the topics discussed, and ideas presented are Jaspreet’s opinions and presented for entertainment purposes only. The information presented should not be construed as financial or legal advice. Always do your own due diligence.

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