Key Vote Alert – Senate & House – “YES” – on H.R. 1, One Big Beautiful Bill Act

The Club for Growth urges all Senators and Representatives to vote YES on final passage of H.R. 1 – the One Big Beautiful Bill Act. The results of this vote will be included in the Club for Growth Foundation’s 2025 congressional scorecard. Club for Growth issues this key vote alert in relation to the recently released legislative text for the substitute amendment in the Senate with the assumption there will not be significant changes to the bill prior to final passage.

The One Big Beautiful Bill (OBBB) Act prevents the largest tax increase in American history and stops Democrats from raising taxes by $4.5 trillion which would devastate American families and businesses. The OBBB extends and expands the Trump 2017 tax cuts. Moreover, the bill includes the largest mandatory spending cut in history and is a downpayment on necessary fiscal reforms to thwart a fiscal crisis.

Club for Growth is all about economic growth and make no mistake: this bill fosters an economic environment that will allow for growth of the U.S. economy. The OBBB provides permanency on numerous pro-growth tax policies, setting the stage for certainty among businesses and entrepreneurs. The tax title includes critical pro-growth measures, including full expensing for capital investments in structures for manufacturing, agriculture, and resource extraction – a free market, pro-growth policy that the Club has consistently championed as necessary for renewing industrial investment in the United States. The bill also reinstates full expensing for short-term investments and R&D, expands interest deductibility by returning to the EBITDA standard, and raises the Section 179 expensing limit. Next, the bill makes permanent the 20% deduction for Qualified Business Income (QBI), which was an important reform from the 2017 tax cuts to allow for closer parity among pass-through entities (LLCs, S corporations, sole proprietors, and partnerships) and corporations.

The bill ensures no increases in marginal tax rates and avoids harmful tax increases on stock buybacks and carried interest—proposals that Club for Growth has consistently opposed. We are pleased the White House, House, and Senate Republicans rejected these anti-growth tax increases. The OBBB also makes permanent the federal income tax rates from the 2017 tax cuts, and the bill increases the standard deduction, makes it permanent, and allows the standard deduction to be adjusted for inflation.

While Club for Growth supports totally abolishing the estate tax, this bill enhances the exemption level to $15 million ($30 million for married filing jointly). Club for Growth continues to urge policymakers to completely abolish the death tax, which is double-taxation at best.

The bill also fulfills many promises made such as No Tax on Tips, overtime pay, and No Tax on Social Security by providing a $6,000 deduction for eligible seniors since Social Security cannot be reformed in reconciliation legislation. These reforms expire in 2028 and will undoubtedly place pressure on Members of Congress to extend the provisions in the coming years.

In 2022, President Biden began one of the greatest scams in legislative history with the Inflation Reduction Act also known as the socialist Green New Deal. The bill advanced a green agenda that cost American taxpayers almost $1 trillion. The OBBB ends the Green New Scam by terminating green energy tax subsidies and setting free American energy production. The bill terminates the clean vehicle credits, commercial clean vehicle credit, energy efficient home improvement credit, residential clean energy credit, energy efficient commercial buildings deduction, new energy efficient home credit, cost recovery for energy property and qualified clean energy facilities, property and technology, clean hydrogen production credit, clean electricity production credit (wind and solar), clean electricity investment credit (wind and solar facilities), and more. This “placed in service” date of December 31, 2027 ensures the Green New Scam ends during this administration. Meanwhile the bill promotes American energy independence by increasing onshore and offshore oil and gas leasing, coal and other mining.

Club for Growth has long-supported free market reforms in health care like Health Savings Accounts (HSAs), which allow taxpayers to use tax-free savings and investment for health care expenses. This bill expands HSA eligibility by amending the definition to allow for Bronze and Catastrophic health plans. Next the bill supports pro-growth innovations, including emerging technologies like artificial intelligence by limiting state regulation.

In addition, the bill includes important reforms to reduce wasteful spending and promote upward mobility through common sense changes to federal welfare programs. First, it establishes work requirements for able-bodied adults without dependents (ABAWDs) for those between the ages of 19-64 enrolled in Medicaid. This reform is supported by the vast majority of the American people, who recognize that it is immoral for able-bodied individuals to receive taxpayer support without participating in productive activities that will enable them to escape government dependence. The bill also cuts the provider tax in the Obamacare Medicaid expansion states from 6% to 3.5%. Obamacaid has trapped millions of people in welfare and these Medicaid reforms will help return healthy, able-bodied people to work – while protecting the actual Medicaid program and recipients, including people with disabilities, children, women who are pregnant, and the elderly.

When the COVID pandemic struck America, millions of parents recognized their children’s school was failing students. State legislatures have passed sweeping legislation to increase school choice. The OBBB finally allows the federal government to enhance school choice by allowing for tax credits for contributions of individuals to Scholarship Granting Organizations (SGOs).

The legislation strengthens the integrity of the Supplemental Nutrition Assistance Program (SNAP by ending loopholes to the programs work requirements – specifically by tightening waiver thresholds, expanding work requirements to all working age ABAWDs, and creating incentives for state to move individuals from welfare to work through state share requirements for SNAP allotments.

Although the bill includes an ugly $5 trillion debt limit increase, the bill includes enough pro-growth and fiscal reforms to merit support from all Members of Congress. However, Club for Growth firmly agrees with deficit hawks that there is so much more work to be done to reduce federal spending and is eager to continue that work in the months ahead.