How the One Big Beautiful Bill (OBBB) Impacts Arizona Families, Seniors, and Small Businesses

The One Big Beautiful Bill (OBBB)—President Trump’s new tax reform—is making headlines as one of the most ambitious tax cuts in U.S. history. While debate swirls around its broader implications, the numbers for Arizona speak volumes: bigger paychecks, protected jobs, and targeted relief for working families.

If you're living in Arizona or running a small business here, here's what you need to know about how OBBB could impact your wages, taxes, and financial future.

Bigger Paychecks for Arizona Workers

Under the OBBB, wages are projected to increase between $3,800 and $6,800 over the next four years (inflation-adjusted), according to the Council of Economic Advisers (CEA). For a typical family with two children, this translates to $7,400 to $10,600 more in take-home pay per year.

And it doesn’t stop there:

• No Taxes on Tips: A game-changer for Arizona’s service workers. Nearly 3% of the workforce could benefit.

• No Taxes on Overtime: With 23% of employees regularly working overtime, and 64% likely eligible, this provision could significantly boost after-tax income.

• No Taxes on Social Security: Approximately 1.3 million Arizona seniors stand to gain from this tax relief.

Protecting Jobs & Reviving Manufacturing

The OBBB is expected to protect 133,000 full-time jobs in Arizona, especially in sectors vulnerable if the Trump Tax Cuts were allowed to expire. That’s a major buffer against economic uncertainty.

In addition:

• Manufacturing Incentives: Arizona’s 6% manufacturing workforce stands to benefit from pro-industry provisions aimed at domestic growth.

• Opportunity Zones Expansion: With 168 designated Opportunity Zones, Arizona has already seen 23,000 jobs and 6,400 new housing units. OBBB proposes to make these zones permanent—encouraging even more local investment.

Relief for Small Businesses and Homeowners

Arizona’s entrepreneurial spirit is getting a tax break too:

• 103,000 small businesses may qualify for the 199A passthrough deduction—a major boost for Main Street enterprises.

• OBBB also supports housing growth through expanded Opportunity Zone investment, benefiting communities across the state.

Debunking the Myths: What's Actually in the Bill?

There’s been a lot of noise around the OBBB—some calling it a gift to billionaires or an attack on vulnerable Americans. But here’s what the bill actually includes:

Criticism	Reality Under OBBB
“It’s for the rich.”	The largest middle- and working-class tax cut in U.S. history.
“It hurts low-income families.”	Expands the Child Tax Credit, childcare access, and newborn savings accounts.
“It cuts Medicaid and Medicare.”	No cuts to either program—OBBB strengthens them by reducing fraud.
“It raises the deficit.”	Claims to cut the deficit by $2 trillion through economic growth and waste reduction.
“Small businesses are left behind.”	Extends Trump-era small business deductions and eliminates looming tax hikes.

A Bill for the Blue-Collar Boom

President Trump has labeled the OBBB as “the most pro-growth, pro-worker, pro-family legislation ever crafted.” It’s clear the bill is designed to:

• Deliver bigger paychecks

• Protect working-class benefits

• Boost American manufacturing

• Incentivize local hiring and investment

What This Means for You

Whether you’re a server working double shifts, a small business owner trying to stay competitive, or a retiree relying on Social Security—OBBB may change how much you keep, how much you pay, and how much you can plan for the future.

If you're unsure how these new tax changes will impact your individual situation, now is the time to speak with a tax professional. At Tax Resolution 1st, we help Arizona residents navigate changes in federal tax law with clarity and confidence.

Need Help Understanding Your Tax Benefits?

Contact Tax Resolution 1st today for a free consultation. We're here to help you maximize your benefits, reduce your tax burden, and plan smart for the future.