Senate Passes “One Big Beautiful Bill” After Tie-Breaking Vote

In a dramatic overnight session, the U.S. Senate today passed the sweeping budget, tax, and spending package known as the “One Big Beautiful Bill Act”. The measure advanced with a razor-thin 51–50 vote, with Vice President J.D. Vance casting the tie-breaking vote after three Republican senators Susan Collins, Thom Tillis, and Rand Paul joined Democrats in opposition

What’s in the Senate Version?

The 900‑page package includes about $4.5 trillion in tax cuts, plus major policy shifts:

• Permanent extension of Trump-era tax rates, including business and individual cuts

• A $40,000 SALT deduction cap for five years, then reverting to $10,000 

• New exemptions for tips, overtime, and some Social Security income

• Accelerated phase‑outs for wind and solar tax credits and new levies on green energy supply chains

• A $15 million indexed estate tax exemption, offering high-net-worth families planning certainty

• Deep cuts to Medicaid and nutrition programs, including stricter eligibility and work requirements 

  
  

Why the Vote Mattered

The Senate passage marks a major milestone—but also highlights deep divisions:

• Several GOP senators opposed the bill over deficit impact and social safety-net cuts 

• Elon Musk called the legislation “utterly insane and destructive,” warning of potential economic fallout 

• The CBO projects the bill will add $3.3 trillion to the federal deficit over the next decade 

  
  

What Happens Next?

The bill heads back to the House for final approval—likely by July 4—to meet the deadline set by former President Trump.

Any changes by the House must be reconciled with the Senate version, and there are growing signs that moderate Republicans and fiscal conservatives may continue to push back.

What Tax Professionals Should Know

This legislation will significantly impact tax planning strategies across:

• SALT deduction timing and planning for high-income clients

• Estate and business succession with a permanent $15 million exemption

• Clean energy investment planning, especially for clients in wind and solar sectors

• Employee deductions, including tips and overtime likely new items on payroll planning

• Compliance and timing ahead of anticipated House amendments

  
  

Importantly, firms need to track final House changes and final enactment timelines, as well as regulatory guidance when the bill becomes law.

How Bizora AI Supports You

Bizora AI tracks developments on reconciliation, tax provisions, and public policy—delivering insights that help advisors:

• Compare House vs. Senate versions

• Model tax outcomes for key client segments

• Generate clear client communication on strategy adjustments

• Stay aligned with evolving deadlines, especially around July 4

Want a breakdown on how the $40k SALT cap or the green credit changes impact your clients?→ Ask Bizora AI for real-time, source-backed insights.