Ligeia Donis

Co-author

The One Big Beautiful Bill Act, enacted as Public Law 119-21 on July 4, 2025, introduces new section 4475,i which imposes a 1% excise tax on remittance transfers made after December 31, 2025. The provision was initially touted as one that “Makes America Win Again,” because it would affect only certain immigrants. As enacted, however, the excise tax applies equally to all individual taxpayers, whether US citizen, resident, or immigrant. It is unclear just how broadly section 4475 will be applied, but the Joint Tax Committee estimated that it will bring in nearly $10 billion of revenue over 10 years.

On July 4, President Trump signed the ‘One Big Beautiful Bill Act’ into law, including provisions reducing federal income tax on qualified tips and overtime compensation. For employers, the new law raises a host of practical questions: What do employers need to track and report? How will payroll systems need to adapt? What guidance can we expect as we move forward? How might state tax rules interact with these federal changes? In this video chat, our Employment & Compensation and Tax partners unpack this significant development in federal tax policy. Tune in to discover what these changes may mean for your operations, and for practical tips to navigate the new law.

We reported in May on the provisions in the House’s One Big Beautiful Bill addressing two of President Trump’s campaign promises – no taxation of tips and overtime. The Senate has now passed its version of the One Big Beautiful Bill, which includes its version of these provisions in sections 70201 and 70202. See our prior blog post here for a detailed discussion of the House provisions. While the basic structure of the provisions are similar, there are differences in the details.