05.30.25 Picture for Article

The “One Big Beautiful Bill Act”: The New Tax Propo …

As a new presidential administration takes shape in 2025, the House of Representatives has introduced its first major budget proposal: “One Big Beautiful Bill Act”. There is a potential for many tax provisions to revert back to pre-2017 standards with the upcoming expiration of the 2017 Tax Cuts and Jobs Act (TCJA), so this legislative push is coming at a pivotal time for our country’s tax system. While this proposal is still making its way through Congress and could see changes, here’s a breakdown of what’s currently on the table and what it could mean for taxpayers.

Building on the TCJA: What’s Staying

At its core, the One Big Beautiful Bill Act seeks to preserve the essence of the TCJA, which overhauled the U.S. tax code in 2017. Key provisions that would become permanent under the new act include:

  • Tax Brackets: The current brackets and rates for both individuals and trusts would stay unchanged, including capital gains and dividend taxes. Thus, avoiding the increases many anticipated post-TCJA.
  • Mortgage Interest Deduction: Retained at the reduced threshold of $750,000 in mortgage debt.
  • SALT Deduction: The cap on state and local tax deductions would rise from $10,000 to $40,000 for joint filers ($20,000 for married filing separately).
  • Standard Deduction: The higher standard deduction introduced under TCJA would stay intact through 2028, with a temporary $2,000 boost for couples ($1,000 for singles).
  • Estate and Gift Tax Exclusion: The lifetime exemption would rise by roughly $1 million, averting the dramatic drop expected in 2026, when it was set to be halved.
  • Child Tax Credit (CTC): For 2025 through 2028, the credit would increase to $2,500 per child before returning to $2,000 in 2029. The $500 credit for other dependents would remain.
  • Permanent Elimination of the Personal Exemption: Removing this deduction helps offset the cost of the expanded standard deduction and child tax credit.

Introducing the “Trump Account”: A New Savings Option for Families

One of the most novel features of the bill is the introduction of a new savings tool called the Trump Account. Designed to promote financial planning for children, the account can be funded with up to $5,000 annually on an after-tax basis. Parents, relatives, or any taxable entity can contribute until the child turns 18. This initiative draws inspiration from programs like Connecticut’s Baby Bonds, and aims to support long-term wealth building for the next generation.

  • At age 18, half the funds can be withdrawn for qualified uses (such as education, a first home, or starting a business) with gains taxed at the favorable long-term capital gains rate.
  • After age 30, the remaining funds can be used for any purpose, with non-qualified withdrawals taxed at ordinary rates.
  • Newborns from 2025 to 2028 would receive a $1,000 federal seed contribution.

Expanded Uses for HSAs and 529 Plans

The bill proposes expanded flexibility for both Health Savings Accounts (HSAs) and 529 education savings plans:

  • HSAs could be used for gym memberships, on-site clinic services, and would allow joint spousal catch-up contributions.
  • Seniors enrolled in Medicare Part A could continue HSA contributions if covered by a high-deductible health plan.
  • 529 plans could now be used for test fees, tutoring, and certain educational therapies, extending their benefits beyond traditional tuition costs.

Temporary Benefits: 2025–2028

Several tax breaks in the bill are temporary, set to expire after four years:

  • No Taxes on Tips or Overtime: Hourly workers could deduct tipped income and overtime pay, though these wages remain subject to FICA.
  • Senior Tax Deduction: An additional $4,000 deduction for seniors earning under $75,000 (or $150,000 for joint filers), stacked on top of the current age-based deductions.
  • Car Loan Interest Deduction: Up to $10,000 in deductible interest for U.S.-assembled vehicle loans for eligible taxpayers.

While there was some chatter about eliminating taxes on Social Security benefits, that reform did not make it into this bill. However, the expanded senior deduction could provide some indirect relief for retirees near the current taxation thresholds.

A Work in Progress

As with all proposed legislation, the One Big Beautiful Bill Act is subject to change and the above items could be different in the final version. Nonetheless, the current draft gives a strong indication of priorities for this tax reform, which include reinforcing the TCJA, encouraging savings and investment, and offering targeted relief to families, seniors, and workers.

These tax changes could have a profound impact on your financial well-being. Whether you’re planning for retirement, saving for your child’s future, or navigating the complexities of deductions and credits, it’s crucial to stay informed. And, as always, consult a financial advisor or tax professional to understand how these potential changes may affect your individual situation.
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Stop by our Southlake wealth-management office, just off TX-114 and minutes from Westlake, Trophy Club, and Colleyville, to meet the team that’s guided North Texas families and business owners for 25 years. Mills Wealth Advisors delivers fee-only financial planning, retirement-income strategies, tax-efficient investing, and exit-planning expertise to clients across the Dallas-Fort Worth metroplex. Tap the map below for turn-by-turn directions or give us a call to book your complimentary discovery meeting today.

  1. Leave Westlake
    • Head south (≈ 350 ft, restricted-use road).
    • Turn left toward Trophy Club Dr / Westlake Pkwy (≈ 440 ft, restricted).
    • Turn left onto Trophy Club Dr / Westlake Pkwy (0.1 mi).
  2. Join TX-114 East
    • Turn right onto TX-114 Frontage Rd (0.4 mi).
    • Use the left lane to merge onto TX-114 E (1.4 mi).
  3. Exit for Dove Rd / White Chapel Blvd
    • Take the Dove Rd exit (0.5 mi) and keep right.
    • Continue on W State Hwy 114 (0.9 mi).
  4. North White Chapel Boulevard
    • Turn right onto N White Chapel Blvd (0.3 mi).
    • At the first traffic circle, take the 2nd exit to stay on N White Chapel Blvd (2.2 mi).
    • At the next traffic circle, take the 3rd exit (≈ 460 ft).
  5. Arrive
    • Turn right; Mills Wealth Advisors will be on the left after ≈ 130 ft.
    • Address: 1207 S White Chapel Blvd #150, Southlake, TX 76092.
  1. Leave Trophy Club
    • From Hamper Ct, head southwest to Hogans Dr (≈ 350 ft, restricted).
    • Turn right onto Hogans Dr (0.2 mi).
    • Turn right onto Indian Creek Dr (≈ 400 ft).
    • Turn left onto Trophy Club Dr and continue toward TX-114 (0.4 mi).
  2. Join TX-114 East
    • Turn left onto TX-114 Frontage Rd (0.4 mi).
    • Use the left lane to merge onto TX-114 E (1.4 mi).
  3. Exit for Dove Rd / White Chapel Blvd
    • Take the Dove Rd exit (0.5 mi) and keep right.
    • Continue onto W State Hwy 114 (0.9 mi).
  4. North White Chapel Boulevard
    • Turn right onto N White Chapel Blvd (0.3 mi).
    • At the first traffic circle, take the 2nd exit to stay on N White Chapel Blvd (2.2 mi).
    • At the next traffic circle, take the 3rd exit (≈ 460 ft).
  5. Arrive
    • Turn right; Mills Wealth Advisors is on the left after ≈ 130 ft.
    • Address: 1207 S White Chapel Blvd #150, Southlake, TX 76092.
  1. Depart Colleyville
    • Head northwest (≈ 85 ft) to Colleyville Blvd.
    • Turn right onto Colleyville Blvd (0.2 mi).
  2. Pleasant Run Road
    • Turn left onto Pleasant Run Rd (2.0 mi).
    • At the traffic circle, continue straight to stay on Pleasant Run Rd (0.6 mi).
  3. South White Chapel Boulevard
    • Pleasant Run Rd becomes S White Chapel Blvd—continue for 0.5 mi.
    • At the next traffic circle, take the 1st exit (≈ 312 ft).
  4. Arrive
    • Turn right; Mills Wealth Advisors is on the left after ≈ 131 ft.
    • Address: 1207 S White Chapel Blvd #150, Southlake, TX 76092.
  1. Keller Parkway (FM 1709)
    • Head east on Keller Pkwy toward Rufe Snow Dr.
    • Pass Scooter’s Coffee on the right. Distance: 1.5 mi.
  2. Southlake Boulevard
    • Continue straight; Keller Pkwy becomes W Southlake Blvd. Distance: 1.0 mi.
  3. Davis Boulevard (FM 1938)
    • Turn right toward Davis Blvd / S Randol Mill Ave (112 ft).
    • Turn right onto Davis Blvd and continue 0.7 mi.
  4. W Continental Boulevard
    • Turn left onto W Continental Blvd. Distance: 1.7 mi.
    • At the traffic circle, take the 2nd exit to stay on W Continental Blvd (≈ 370 ft).
  5. Arrival on S White Chapel Boulevard
    • Turn right, then the destination will be on the left after ≈ 130 ft.
    • Mills Wealth Advisors – 1207 S White Chapel Blvd #150, Southlake, TX 76092.

1207 S. White Chapel Blvd.
Suite 150
Southlake, TX 76092

For more than twenty-five years, we’ve been serving the financial needs of businesses, individuals, and families in Southlake, Texas and around the country.
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