() President Donald Trump’s “big beautiful bill” emerged victorious with its final passage clearing the House of Representatives Thursday, permanently extending 2017 tax provisions.

Current federal income tax rates were set under the 2017 Tax Cuts and Job Act (TCJA) during Trump’s first administration. With Trump’s 2025 “One Big Beautiful Bill Act,” the legislation extends those tax cuts, which were set to expire later this year. It also eliminates some taxes on tipped wages.

“All of the things we did with the tax cuts and rebuilding our military, not one Democrat voted for us. And I think we use it in the campaign that’s coming up, the midterms,” Trump said at an event in Des Moines, Iowa, Thursday evening.

There are seven marginal tax rates, which is the percentage at which your last dollar of taxable income is taxed. In the United States, higher incomes are taxed at higher federal tax rates.

Under Trump’s bill, the top 1% of earners would see an average tax cut of about $66,000, or 2.4% of their income, next year, according to the Institute on Taxation and Economic Policy (ITEP), a left-leaning think tank. Individuals who fall in this group earn $917,000 a year or more.

“By now it is widely understood that the centerpiece of the tax bill being debated in Congress is an enormous windfall to the wealthy,” said Carl Davis, ITEP’s research director, in a statement. “The windfall would be particularly immense for wealthy families in more conservative-leaning states with light taxes on the rich.”

If the legislation hadn’t passed, the 2017 tax provisions would have expired, and some have said that could increase tax rates for others.

“If the TCJA provisions expired, many taxpayers could face higher marginal tax rates,” according to SmartAsset, a financial technology company.

Trump will sign the bill into law Friday.

2025 Federal Income Tax Brackets, per SmartAsset