UC Law SF Experts Unpack What the One Big Beautiful Bill Act Means for American Taxpayers

Professors Heather Field and Manoj Viswanathan, co-directors of UC Law SF’s Center on Tax Law, guide students through the complexities of the One Big Beautiful Bill Act during a discussion at the Cotchett Law Center.

The One Big Beautiful Bill Act—a sweeping, 870-page law signed July 4—is packed with wide-ranging changes, including tax reforms, that affect families, workers, businesses, and investors. Experts from UC Law San Francisco’s Center on Tax Law broke down what it means for American taxpayers during an on-campus discussion Aug. 28.

Professor Heather Field, co-director of the Center on Tax Law, explained how the law introduces new “Trump accounts,” investment accounts for children that come with a $1,000 starter deposit from the federal government. The law also provides partial tax relief on income from tips and overtime pay, along with a temporary tax deduction of up to $6,000 for seniors. Many of the new benefits require a Social Security number, which means noncitizens are largely excluded.

Field noted that the timing of several provisions appears carefully designed to line up with election cycles. Key tax breaks are scheduled to expire in 2028, coinciding with the next presidential election. Meanwhile, changes to withholding formulas were delayed, ensuring bigger refund checks for voters in 2026 before the midterm elections.

Recent staff and budget cuts at the IRS will also affect how the law gets rolled out, Field said.

“A lot of work must be done by IRS to provide new guidance, new forms, and new regulations,” Field said. “There are major questions on how the IRS will do all this. There will be some real challenges in implementation.”

Center on Tax Law Co-Director and Professor Manoj Viswanathan looked at the law’s impact on different income brackets, noting that it tilts benefits toward wealthier households while the bottom 10% of earners are expected to lose income, according to analysis by the Congressional Budget Office.

He also examined the law’s impacts on businesses and investors. Companies gained significant wins, including permanent deductions for research and development expenses and for capital investments. Startups and their backers will also benefit from expanded incentives for “qualified small business stock.” This allows investors to realize tax-free gains of up to $15 million when investing in companies with assets of up to $75 million.

Viswanathan warned that the complexity of the law will make it difficult for individuals and businesses to navigate. But that complexity, he said, ensures a steady demand for tax professionals.

“The fact that we have complicated provisions, it means that if you study tax, if you want to work in tax, you often will get a job,” he said. “Tax lawyers are always going to be needed and useful.”