Jaspreet Singh of Minority Mindset is known for giving practical, no-nonsense money advice to Americans. He recently shared his views on Trump’s One Big Beautiful Bill Act, which includes changes to both corporate and personal income tax laws, among many other things.
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“The White House says this bill will help the economy boom, while other people like Elon Musk say it’s going to destroy the economy,” Singh told YouTube viewers. Rather than diving into politics, Singh wanted to explore the economic effects of Trump’s bill, which is outlined in this article.
Numerous Federal Tax Changes
Singh highlighted several federal tax changes in the Big, Beautiful Bill, such as:
- Raising the standard deduction.
- Adding a senior deduction for people over 65 earning up to $175,000 per year (single) or $350,000 (joint filers).
- Switching tax bracket income levels and marginal tax rates.
- Allowing tax deductions on tips for single taxpayers who earn less than $150,000 ($300,000 for joint filers).
- Giving a $1,000 “baby bonus” to all children born to U.S. citizens between Jan. 1, 205, and Dec. 31, 2028.
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These changes are in addition to corporate tax breaks. Some of these changes may lower taxes for a lot of Americans.
“No matter how much money you make, whether it’s under $50,000 a year or more, you will get to qualify for a larger standard deduction,” Singh said.
The new law may also simplify tax filing for more people, since you can claim a larger deduction without accounting for every deductible expense. Rearranging tax brackets may also lead to lower tax bills for many Americans.
“In practicality,” Singh said, “if you’re making over $50,000 a year, chances are you’re going to be paying less money in income taxes.”
Additional Spending: Good for Investors
If the baby bonus has the effect Trump and his administration intended, it will encourage more people to have babies. This may boost spending in certain industries, including childcare and consumer packaged goods focused on baby products. The average cost of raising a baby in the first year is more than $20,000, according to BabyCenter.com.
The BBB also allocated an additional $150 billion in defense spending, which will also bolster the stock market. Spending for defense would benefit not just defense contractors, but semiconductor manufacturers, metal and other raw material industries, and companies involved in technology development.
“There are changes in government policies which is going to change where some of that money is flowing, which is going to create some investment opportunities,” Singh said.
What Most People May Not Know About the BBB
Then, Singh dove into Congressional Budget Office data to explore what these changes can mean for the U.S. economy beyond the stock market. And, while smaller tax bills sound enticing — and were a big part of Trump’s campaign — it may not have the effect many people hope.
“[T]his bill is expected to add another $3 trillion or so to our national debt over the next decade,” Singh said. “When the government spends money they don’t have, that creates some sort of inflation.”
Inflation, as Singh’s viewers (and GOBankingRates readers) know, makes items more expensive. But at the same time, it benefits stocks, asset prices and rental prices, Singh pointed out.
“For investors, this is good news,” he said. “This bill is going to benefit some people more than others.”
Editor’s note on political coverage: GOBankingRates is nonpartisan and strives to cover all aspects of the economy objectively and present balanced reports on politically focused finance stories. You can find more coverage of this topic on GOBankingRates.com.
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This article originally appeared on GOBankingRates.com: One Money Expert Says This Is What They’re Not Telling You About Trump’s Big Beautiful Bill
