I Asked ChatGPT What the Big Beautiful Bill Means for the Middle Class’s Taxes: Here’s What It Said
Written by
John Schmoll
Edited by
Jenna Klaverweiden
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President Donald Trump campaigned with the promise of codifying tax cuts passed during his first term upon return to the Oval Office. The 2017 Tax Cuts and Jobs Act (TCJA) was a cornerstone of his first term, and many of the cuts would have died at the end of 2025. That promise to cement cuts became a reality on July 4, with the One Big Beautiful Bill being signed into law.
The bill had over 900 pages, and Americans are just learning what’s included in it. GOBankingRates decided to ask ChatGPT what the bill means for the middle class’s taxes. Although ChatGPT didn’t provide an in-depth overview of how the law will impact the middle class, it gave a balanced examination. Here’s what the AI had to say.
Also see three ways Trump’s One Big Beautiful Bill could save the wealthy thousands.
Extension of TCJA Measures
The TJCA provided various provisions to aid middle-class Americans. If those measures expired at the end of 2025, it could’ve had negative impacts. ChatGPT explained the law would help middle-class individuals in specific ways. Here are a few:
- It maintains lower tax brackets.
- It keeps the nearly doubled standard deduction for qualifying Americans.
- It protects the child tax credit.
Extending the Trump tax cuts “keeps middle-class taxes from rising after 2025,” ChatGPT said.
Possibility of New Middle-Class Tax Cuts
Who doesn’t love a tax cut? Putting more money in the pockets of middle-class Americans is generally a good thing. This is especially so when more middle-class families are struggling financially, according to the Pew Research Center.
ChatGPT said the One Big Beautiful Bill has the potential for more tax cuts and benefits for middle-class individuals, including reducing tax cuts further, establishing a potentially new deduction for American families, and increasing child and/or dependent care credits.
The result? “More room in budgets strained by inflation and slight increases in take-home pay,” ChatGPT said. The sentiment stands to reason, as the Congressional Budget Office believes the bill will benefit middle-class Americans, who might see an increase in their budgets of up to $1,000 annually.
Corporate Tax Cuts Could Cause Collateral Damage
ChatGPT warned that corporate tax cut provisions in the bill could have harmful effects for middle-class homes. The bill does establish reduced effective tax rates for corporations, per the Tax Foundation.
The AI pointed out that proponents of the bill argue this will create higher wages and/or more jobs for Americans. That’s not to mention possible rising stock prices that could help retirement accounts grow.
The impact, according to ChatGPT, is a “possible long-term economic boost, but critics argue benefits skew to the wealthy.”
Increased Federal Debt and Possible Program Cuts
Trump has obviously hailed the perceived benefits of the One Big Beautiful Bill. However, something has to pay for tax cuts, as that means reduced inflows for the government. The chatbot pointed out two key problems with the bill if matching offsets don’t occur. Those are growing the national debt and creating stress that may cause future reductions of Medicare, Social Security or other safety net programs.
The fallout could put middle-class Americans at risk, with “potential long-term costs, especially for retirees or low-income households,” ChatGPT said.
Time will tell how the One Big Beautiful Bill will impact taxes for middle-class Americans. The generative AI concluded with a mixed view of what might occur. It spoke highly of possible tax relief, but it was measured. “For the middle class, it could prevent a tax hike in 2026 and may offer modest new tax breaks, but the details matter — and there are concerns about how these cuts might be paid for,” ChatGPT said.
Editor’s note on political coverage: GOBankingRates is nonpartisan and strives to cover all aspects of the economy objectively and present balanced reports on politically focused finance stories. You can find more coverage of this topic on GOBankingRates.com.
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