Trump's Sweeping Tax Bill Passes Congress, Impacting Illinois Taxpayers

The One Big Beautiful Bill Act extends and expands several tax cuts, but also reduces spending on social programs.

Published on Feb. 22, 2026

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President Donald Trump's massive tax and spending bill, known as the One Big Beautiful Bill Act, was signed into law in July 2025 and carries vast implications for Illinois taxpayers. The bill made permanent several provisions from Trump's previous Tax Cuts and Jobs Act, while also introducing new deductions and changes that financial advisers say will primarily benefit high-income earners.

Why it matters

The bill's tax cuts and spending reductions are expected to significantly impact household finances in Illinois, with the wealthiest filers likely reaping the most benefits. However, the bill also reduces funding for social safety net programs that often aid low-income families, raising concerns about growing inequality and the government's ability to responsibly manage the national debt.

The details

Key provisions of the bill include: making the 37% top income tax rate permanent, increasing the state and local tax (SALT) deduction cap from $10,000 to $40,000, expanding the child tax credit, creating new 'Trump Accounts' for young savers, and introducing deductions for overtime pay and qualified tips. The bill also phases out clean energy tax credits and cuts over $900 billion from Medicaid spending over 10 years.

  • The bill was signed into law in July 2025.
  • The SALT deduction cap increase took effect in 2025 and will increase 1% per year through 2029, before reverting to $10,000 if no further legislation is enacted.
  • The enhanced senior deduction is available from 2025 through 2028.
  • The overtime pay and qualified tips deductions are available for tax years 2025 through 2028.
  • The estate, gift and generation-skipping transfer tax exemptions increased on January 1, 2026.

The players

President Donald Trump

The former president who championed the tax and spending bill, known as the One Big Beautiful Bill Act.

Jodi Mersinger

Managing director of tax and business services at the Chicago office of CBIZ, a professional services firm.

Scott Neubauer

A financial adviser at Wisdom Investments in Hoffman Estates, Illinois.

Anthony Pellegrino

Founder and CEO of Goldstone Financial Group, an Oakbrook Terrace-based firm that evaluates Roth conversions for clients.

Ed Lyon

A Cincinnati-based tax consultant who worked on Capitol Hill during the 1986 Tax Reform Act.

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What they’re saying

“The OBBBA [One Big Beautiful Bill Act] came into existence to address the impending expiration of the tax cuts from the Tax Cuts and Jobs Act of 2017. The idea was for a comprehensive singular bill to cover a full agenda in one sweeping piece of legislation. For the most part, it's a very tax-advantaged legislation with certain tax cuts being made permanent and others expanded.”

— Jodi Mersinger, Managing director of tax and business services at the Chicago office of CBIZ (suntimes.com)

“Given our state's consistently high property taxes, that's a notable amount of relief for many homeowners.”

— Scott Neubauer, Financial adviser at Wisdom Investments (suntimes.com)

“In many cases, the long-term savings from completing a Roth conversion still outweigh the value of the new deduction, but this will now require case-by-case analysis to avoid unintentionally reducing or eliminating the deduction due to MAGI increases.”

— Anthony Pellegrino, Founder and CEO of Goldstone Financial Group (suntimes.com)

“Extensions ate up most of the budget [bill] for tax changes. That was the primary goal of the bill.”

— Ed Lyon, Tax consultant (suntimes.com)

“High net worth individuals have a reason to celebrate. For families and advisers, this is a chance to review estate plans in light of the favorable amount of exemption.”

— Brad Werner, Partner at the Chicago office of Wipfli (suntimes.com)

What’s next

The judge in the case will decide on Tuesday whether or not to allow Walker Reed Quinn out on bail.

The takeaway

This bill highlights the growing divide between the tax benefits enjoyed by high-income earners versus the reductions in social safety net programs that often aid low-income families, raising concerns about increasing inequality and the government's ability to responsibly manage the national debt.