Economists see the tax cuts in Trump's One Big Beautiful Bill as a principal driver of the U.S. economy in 2026, both for individuals and businesses. Here's some detail about what's in store.
A range of changes in individual tax rates and breaks could boost household war chests in early 2026 through a combination of larger refunds during the filing season and larger take-home income as paycheck withholding levels are reset to account for the changes.
BUSINESS TAX BREAKS
The business tax changes are substantially geared toward providing incentives for businesses to invest in their enterprises, both through the extension of lower tax rates and bigger write-offs for capital expenditures and research and development spending.
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