What “Generally Recognized As Safe” Really Means If you’ve ever turned over a food package and struggled to pronounce half the ingredients, you’ve likely encountered the effects of something called GRAS — short for Generally Recognized As Safe. It sounds reassuring. Safe. Approved. Trustworthy. But when you peel back the layers, GRAS is one of the most debated regulatory pathways in the modern food system — and it plays a major role in the rise of ultra-processed foods. Let’s break it down clearly.
The One Big Beautiful Bill
What it Means for Your Taxes
The One Big Beautiful Bill
by Tim Rubash
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Taxes are one of the most powerful financial forces in your life. They shape your take-home pay, your retirement strategy, your estate plan, your business decisions, and even when you choose to buy a home or car. When Congress passes sweeping legislation like the One Big Beautiful Bill (OBBB), it isn’t just political noise — it changes real dollars for real families.
This bill introduced a mix of permanent tax code adjustments and temporary relief provisions that affect working families, retirees, business owners, and investors. Some of these changes lower tax burdens directly. Others shift incentives or adjust long-standing rules.
Below, we walk through the 15 major provisions — in detail — and explain how they may impact your household.
🧾 1. Expanded Standard Deduction (Permanent + Inflation Indexed)
The higher standard deduction levels remain in place and continue to be adjusted annually for inflation.
Why this matters:
Most Americans take the standard deduction rather than itemizing. A higher standard deduction lowers your taxable income automatically. For example, if the standard deduction rises by $1,000, that’s $1,000 less income subject to federal tax.
Who benefits most:
Middle-income households, retirees with modest income streams, and workers who don’t itemize mortgage interest or charitable deductions.
Strategic takeaway:
Because the standard deduction remains elevated, many households will not benefit from itemizing — unless they fall into higher SALT ranges (see below).
🏡 2. Increased SALT Deduction Cap (Temporary Through 2029)
The State and Local Tax deduction cap increases to $40,000 for certain income levels (through 2029).
Previously capped at $10,000, this was a major pain point for homeowners in high-tax states.
Why this matters:
If you live in a state with high property taxes and income taxes, you may now deduct significantly more if you itemize.
Who benefits most:
Homeowners in states like New York, California, New Jersey, Illinois — and even some higher-value property owners in suburban markets.
Strategic takeaway:
Run the numbers. With a higher SALT cap, some taxpayers may shift from standard deduction back to itemizing.
👵 3. Additional Senior Deduction (Temporary)
Taxpayers age 65+ may deduct up to $6,000 individually or $12,000 for couples filing jointly.
Why this matters:
This reduces taxable income for retirees drawing Social Security, pensions, or retirement account distributions.
Who benefits most:
Middle-income retirees who are just above Social Security taxation thresholds.
Strategic takeaway:
Retirement withdrawal strategies may need adjusting. This deduction can change how much you draw from traditional IRAs.
👶 4. Child Tax Credit Increase
The Child Tax Credit increases to $2,200 per qualifying child.
Why this matters:
This directly reduces tax liability — dollar for dollar — rather than just lowering taxable income.
Who benefits most:
Working families with children under qualifying age thresholds.
Strategic takeaway:
Families should update payroll withholding to reflect larger credits to improve cash flow during the year.
🤝 5. Adoption Credit Adjustments
The adoption credit now includes partially refundable components.
Why this matters:
Refundable credits can generate cash back even if your tax liability is low.
Who benefits most:
Families adopting domestically or internationally who incur significant legal and administrative costs.
Strategic takeaway:
Work closely with a tax professional — adoption credits involve documentation and income phaseouts.
❤️ 6. Charitable Deduction for Non-Itemizers
Non-itemizers can deduct up to $1,000 (single) or $2,000 (joint) in cash charitable donations.
Why this matters:
Previously, only itemizers benefited from charitable deductions.
Who benefits most:
Middle-income households who give consistently but don’t itemize.
Strategic takeaway:
Track cash gifts carefully — this includes direct contributions to qualifying charities.
⛑️ 7. Deduction for Tip Income
Workers earning tips may deduct up to $25,000 in tip income.
Why this matters:
Tips have historically been taxable income. This deduction reduces taxable income directly.
Who benefits most:
Restaurant servers, bartenders, hospitality workers, salon employees, and gig-economy workers.
Strategic takeaway:
Accurate tip reporting remains critical. The deduction applies to reported income.
⏱️ 8. Deduction for Overtime Pay
Workers can deduct qualified overtime pay.
Why this matters:
If you work extra shifts, this reduces the tax burden on those additional earnings.
Who benefits most:
Healthcare workers, police officers, firefighters, manufacturing employees, hourly workers.
Strategic takeaway:
Understand how overtime is defined under federal wage rules. Not all extra income qualifies.
🚗 9. Auto Loan Interest Deduction
Interest on qualifying U.S.-assembled vehicle loans may be deductible up to $10,000.
Why this matters:
Auto loan interest has not traditionally been deductible for personal vehicles.
Who benefits most:
Middle-income families purchasing new domestically assembled vehicles.
Strategic takeaway:
Review vehicle eligibility rules before purchase.
🧮 10. Increased 1099 Reporting Threshold
The reporting threshold increases to $2,000 (from $600).
Why this matters:
Fewer small transactions trigger 1099 reporting.
Who benefits most:
Gig workers, freelancers, small contractors, side-hustle earners.
Strategic takeaway:
Income is still taxable even if a 1099 isn’t issued. Recordkeeping remains essential.
🏛️ 11. Estate & Gift Tax Exemption Increase
The federal estate tax exemption rises to $15 million per individual.
Why this matters:
Fewer estates will be subject to federal estate tax.
Who benefits most:
High-net-worth families and business owners planning wealth transfers.
Strategic takeaway:
Review estate plans before sunset dates change again.
💸 12. 1% Remittance Tax
A 1% tax applies to certain cross-border personal money transfers.
Why this matters:
Affects individuals sending funds abroad.
Who benefits most:
Impacts households with international family support obligations.
🏢 13. Section 179 & Pass-Through Deduction Permanence
Full expensing for certain property and permanent 20% pass-through deduction.
Why this matters:
Encourages investment and reduces small business tax burdens.
Who benefits most:
Entrepreneurs, S-Corp owners, partnerships.
🏗️ 14. Business Interest Deduction Expansion
Adjustments allow broader deductibility of interest expenses.
Why this matters:
Capital-intensive businesses benefit from reduced tax burden.
🏢 15. Energy Credit Reductions
Some commercial clean energy credits are phased out.
Why this matters:
Changes incentives for commercial developers and investors.
Summary: What This Means for You
For most working households, the largest impacts will likely come from:
Higher standard deduction
Increased child credit
Senior deduction
SALT cap expansion
Tip and overtime deductions
Business owners and higher-net-worth families see broader structural changes.
Conclusion: Taxes Shape Your Financial Future
Tax policy is not just about April filings. It influences retirement planning, homeownership decisions, charitable giving, inheritance strategies, and business growth.
The One Big Beautiful Bill reshapes multiple layers of the tax code. Some provisions are temporary. Others may define the tax landscape for years.
The key is not just knowing what changed — but adjusting your financial strategy accordingly.
At West Egg Living, we believe informed planning leads to confident living. And when it comes to taxes, clarity is power.
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Generally Recognized As Safe
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The One Big Beautiful Bill
Taxes are one of the most powerful financial forces in your life. They shape your take-home pay, your retirement strategy, your estate plan, your business decisions, and even when you choose to buy a home or car. When Congress passes sweeping legislation like the One Big Beautiful Bill (OBBB), it isn’t just political noise — it changes real dollars for real families. This bill introduced a mix of permanent tax code adjustments and temporary relief provisions that affect working families, retirees, business owners, and investors. Some of these changes lower tax burdens directly. Others shift incentives or adjust long-standing rules. Below, we walk through the 15 major provisions — in detail — and explain how they may impact your household.