🧾 1. Taxes

Major tax changes & who they affect

• Makes many 2017 Tax Cuts permanent. Instead of expiring at the end of 2025, key provisions like lower individual tax rates, larger standard deductions, and business tax preferences are extended.

• New and modified provisions:

  • Higher standard deduction amounts.

  • Expanded or new deductions for things like tips and overtime income (partially exempt) for a limited time.

  • Increased SALT deduction cap to $40,000 (temporarily).

  • Estate tax exemption increased to ~ $15 million/person.

  • 1% tax on remittances (money sent abroad).

• Distribution of benefits:

  • Wealthier taxpayers and corporations tend to capture a large share of the tax cuts, according to nonpartisan analyses.

How it plays out in practice

• Many people will continue filing taxes similar to recent years (standard deduction, lower rates), but planning strategies (like timing charitable gifts or using tax-deferred accounts) may shift.

• Some cuts (like tips/overtime) are temporary and have limits.

• Because the law adds a large deficit, future changes are possible.

🏥 2. Health Care

Cuts and changes to coverage & programs

• The law reduces federal spending on Medicaid and health insurance marketplaces (including ACA premium subsidies) by substantial amounts — over $1 trillion over the decade — according to official estimates.

• Medicaid changes include:

  • Stricter eligibility, verification rules, and work/community engagement requirements.

  • Additional state administrative burdens.

• Marketplace health plans:

  • Reductions in premium tax credits could raise costs for individuals buying insurance on exchanges.

Impact on coverage

• The Congressional Budget Office (CBO) and other analysts project millions losing current public coverage due to these changes over the next decade.

State implementation

• States must implement new eligibility and enrollment systems, which is complex and costly.

🍎 3. SNAP (Supplemental Nutrition Assistance Program)

Eligibility & administration changes

• The law expands work requirements for SNAP recipients and revises who must meet them.

• Some exemptions (e.g., older adults) are adjusted, but exceptions for veterans, the homeless, and youth aging out of foster care were removed.

• States may assume more administrative and cost responsibilities, increasing their budgets and operational burden.

Benefit levels

• Federal guidance outlines ongoing benefit calculations, but major eligibility and requirement shifts are expected to reduce participation or benefits for some.

💼 4. Small Businesses

Tax provisions affecting small firms

• Permanent tax rate stability helps planning: pass-through and small business rates under the 2017 tax framework continue.

• Some new deductions and credits (like for wages/overtime) may benefit small employers and their workers — though they come with income limits and technical rules.

• Increased IRS scrutiny and compliance complexity: new reporting rules and definitions for deductions mean businesses may need updated tax planning.

Indirect effects

• Cuts to SNAP and Medicaid can affect employees and customers (less spending power, different insurance coverage).

• Immigration-related provisions and fees (e.g., higher work permit expenses and more audits) can impact small employers with immigrant workers.

📌 Big Picture

The law’s core tradeoff:

• Tax relief and certainty for many taxpayers (especially higher earners and businesses), stabilized tax rules into the late 2020s.

• Reduced federal spending on safety-net programs — Medicaid, SNAP, and insurance subsidies — with tighter eligibility and more requirements, potentially lowering coverage and benefits for millions.

References: irs.gov, chatgpt.com, turbotax.com