Submitted for analysis: the income tax liabilities of three American household members and how President Trump’s “big beautiful bill” will impact their tax returns after they file in April 2026. Affordability is the economic buzzword these days. One of the best ways to make things affordable is to let people keep more of the money they earn. (Author’s note: all figures are calculated roughly as approximates based on new IRS guidelines.)
Grandpa—a retired contractor—works part-time doing odd jobs for friends and neighbors out of his 2000 Ford Ranger. He also receives Social Security payments. Daughter works part-time nights as a server at a well-known, locally-owned brew pub while hubby stays home with the kids. Hubby manages a busy national-franchise restaurant set squarely amidst block upon block of corporate retail outlets.
Grandpa, who has a reputation for quality work and fair prices, has earned around $20,000 per year with his door installations and deck staining projects. He’s paid by check, and deposits the money in his still-active business account, so there’s no temptation to hide the income. He also receives his SS via automatic deposit in the amount of $16,000 per year, making his former taxable income amount $36,000 annually.
Daughter is currently getting 24 hours a week at the minimum wage of $15 per hour, but tips, especially on big sporting game nights, can easily outpace her hourly wages. On slow nights, her wages outpace the tip income. The tips are scrupulously accounted for by the pub’s management for tax purposes, and the cash she clears from the tips ends up in a big jar over the kitchen sink. Hubby is the family breadwinner, with a pre-tax salary of $75,000 per year, of which he grosses approximately $67,000.
Under Trump’s OBBB, since his earnings are low enough to qualify for the tax break, Grandpa will only pay income taxes on the money he makes as a semi-retired small-jobs contractor. With SS exempted, his annual income tax liability, formally around $6000, will fall to $3500, saving him $2500 per year.
With OBBB, since her earnings are low enough to qualify for the tax break, daughter will only pay income taxes on her salary, $360 per week, or $18,700 annually. Her tip earnings vary, but can be averaged out to roughly equal the hourly wage. The tax bite on tips, approximately $4200 has been eliminated, putting that money directly into the jar over the kitchen sink and back into the family budget.
Since hubby’s promotion to management, he’s exempt from overtime pay. Prior to his advancement, since he was regularly called upon to work over 40 hours per week, OBBB would’ve provided him an economic windfall, a tax break exempting thousands of income dollars per year from income tax liability.
But hubby isn’t left out of the big, beautiful equation. The beat-to-hell Buick he drove to work finally died. With the career winds at his back he went out and purchased a brand new Chevy Malibu on a three-year installment plan, from which—thanks to OBBB—he can deduct $10,000 of loan interest each year.
It’s difficult to overstate the boon to this family’s finances created by Trump’s big, beautiful bill. And it’s difficult to imagine the three tax-paying members of this family voting for a Democratic Party mostly interested in clawing that money back into the coffers of government waste.
Now, bring on the tariff dividend, $2000 for every American, and don’t miss the trick: call it the “Tariff Dividend” so voters will know where the money’s really coming from, brought back by Trump from countries around the globe who made a living ripping us off.
