President Donald Trump’s extensive legislation focused on tax and immigration is nearing final approval in Congress. Many Americans are looking forward to the economic benefits that will come once the president signs the bill.

Residents from Minnesota’s 6th Congressional District are pushing Congress to quickly pass Trump’s “big, beautiful” proposal, as per various videos sourced from House Majority Whip Tom Emmer’s office. Minnesotans have pointed out the tax relief aspects of the legislation, suggesting that it could return thousands of dollars to their wallets as a reason for supporting this significant bill.

Currently, the budget bill is being reviewed by the Senate and may pass as soon as Monday evening. Once it clears the Senate, it will move to the House for final approval before the president can sign it into law. The president has expressed a desire for the bill to be ready for his signature by the July 4 deadline.

This 940-page legislation includes various tax provisions, notably a permanent extension of the 2017 tax cuts, which reduced overall personal income tax rates.

A typical family of four earning a median income is expected to see a $1,700 tax cut if these reductions are enacted this December, according to the Senate Finance Committee.

The proposed law also aims to protect Americans from new taxes, eliminating taxes on tips and overtime pay. Additionally, it proposes an increase in the child tax credit and a $1,000 savings account for newborns.

The cumulative effect of these tax provisions could result in an increase of at least $7,800 in disposable income for an average family with two children, as predicted in a report by the White House Economic Advisors Council.

“From families and small businesses to manufacturers and waitstaff, Americans are the real winners of this big beautiful bill,” Emmer was quoted as saying. “It’s time to get this bill to the finish line for the hardworking citizens of Minnesota’s sixth district and beyond.”

Meanwhile, Democrats seem unlikely to back the Senate’s proposals. House Democratic leader Hakeem Jeffries previously expressed his disapproval, stating outright that he “hates” the bill.

The significant tax features highlighted by residents in Minnesota include:

No tax on tips.

The Senate’s proposal allows an exemption from taxes on tips, enabling deductions of up to $25,000 per person from 2025 to 2028. However, individuals earning over $160,000 annually are not eligible for this deduction.

This tax exemption on tips is part of Trump’s strategy as he gears up for the 2024 campaign, aiming to reduce taxes for workers in specific sectors. Millions of Americans employed in industries such as food service and personal care will see improved salaries as a result. Jessica Taylor, a service worker with over two decades of experience, mentioned that she plans to use her increased income for daily expenses and her daughter’s hockey costs.

“It makes things much easier at home,” she shared in a video, discussing the expected benefits from the new tax credit. “If I can keep all my tips, it really helps with those extra things.”

Ryan, a small business owner in Emmer’s district, said that eliminating the tax on tips will allow him to pay his foodservice workers better.

“That’ll be a game changer for them. I can tell they’re really excited about it,” he noted, emphasizing the positive impact on his employees.

Overtime payment deduction

The Senate’s budget bill enables individuals to deduct up to $12,500, or $25,000 for married couples. Those making over $160,000 will also see significant tax cuts, with eligibility for temporary deductions from 2025 to 2028.

This new overtime payment structure is set to help many hourly workers. Will, a law enforcement officer in Emmer’s district, is among those who might benefit, expressing concerns about keeping up with inflation on wages.

Increase in child tax credits

The proposal aims to permanently increase the child tax credit, albeit slightly less than what was originally proposed. While the initial house bill suggested $2,500 increases, the adjusted Senate plan proposes $2,200 by the year 2034.

This element of the bill aims to provide financial assistance to many American families, including those who are undocumented. Chip and Michelle, parents of five living in Emmer’s area, shared their support for the tax provisions, emphasizing how these changes would help families afford educational costs and stimulate local spending.

The Senate plan also sustains a $1,000 savings account for newborns, referred to as the “Trump Account,” allowing families to contribute up to $5,000 annually until the beneficiary reaches 31 years old.

Full cost of R&D and capital expenditures

Additionally, the Senate bill plans to reinstate and extend various business tax credits, covering the full costs of both capital expenditures and research and development indefinitely. This is seen as a step beyond what the initial house draft proposed, which only offered temporary tax credits.

Advocates believe that making these business tax credits permanent will encourage domestic production and innovation, despite any associated price increases.

“This is huge for manufacturers across the country,” said Don, the CEO of a manufacturing company in Emmer’s district, noting how vital these regulations could be for driving growth not just in Minnesota, but nationwide.