As Republicans inch closer to passing President Donald Trump’s ambitious legislative proposal, referred to as the One Big Beautiful Bill, the far-reaching implications of the bill continue to emerge.
The bill comprises a myriad of provisions aimed at cutting taxes, trimming support for low-income Americans, ramping up funding for mass deportation efforts, and penalizing renewable energy industries.
While the bill’s proponents celebrate its potential benefits, independent analysts warn that it will add a staggering $3 trillion to the nation’s debt.
The bill, a hefty 887 pages long, encompasses a range of significant changes—its true impact spans several key areas worth exploring further.
At the heart of the proposal, President Trump seeks to target Democratic-led initiatives and audiences, particularly those designed to assist the poor, student borrowers, and combat climate change.
Taxes feature prominently in the bill, as it makes several noteworthy adjustments to the current tax framework.
One of the cornerstone elements of this legislation is the permanence of the 2017 Trump tax cuts.
Initially, the tax rates established under this legislation were set to expire at the end of 2025, which would have led to an impending tax increase for many Americans.
By making these cuts permanent, the bill averts that tax hike, effectively maintaining the existing tax landscape.
Despite preventing an imminent tax increase, many individuals may not recognize this as an additional tax cut due to the continuity of the existing rates.
Additionally, the bill introduces what are being called ‘populist’ tax cuts—new deductions that aim to fulfill President Trump’s campaign pledges.
These tax breaks include provisions for up to $25,000 in tip income, $12,500 in overtime income, $6,000 for seniors, and a deduction for interest on loans for U.S.-made vehicles.
Moreover, the proposal establishes ‘Trump accounts’ for children, in which the government would invest $1,000 per child.
On the other hand, wealthy individuals and businesses are likely the biggest beneficiaries of these changes, especially as the permanence of the 2017 tax cuts significantly aids the affluent.
Owners of pass-through businesses, as well as wealthy heirs benefiting from increased estate tax exemptions up to $15 million, stand to gain substantially.
Residents of affluent blue states are also set to benefit, as the SALT (state and local tax) deduction cap will be raised from $10,000 to $40,000, providing considerable relief to higher earners in these regions.
Additionally, the bill makes major corporate tax breaks permanent, including those tied to bonus depreciation, research and development expensing, and interest deductions.
The combination of these extensive tax cuts, particularly targeting low-income support, has raised significant concern among analysts, who predict the bill will ultimately favor the wealthy while disproportionately harming poorer Americans.
Turning to the safety net, the bill proposes significant cuts to essential programs such as Medicaid, food assistance, and student loans.
Despite President Trump’s past assurances to protect Medicaid, the proposed legislation implements new work requirements and other modifications, leading to potential reductions in funding of up to 18%.
These alterations are projected to result in approximately 12 million individuals losing their health insurance coverage, as reported by the Congressional Budget Office (CBO).
Food assistance, specifically the Supplemental Nutrition Assistance Program (SNAP), is another target, facing potential cuts of up to 20% due to stricter work requirements and increased state financial responsibilities.
Additionally, a peculiar last-minute provision is rumored to incentivize states to incur higher payment error rates, allowing them to delay cost increases.
Student loans are also heavily affected by the proposed overhaul, with changes that would eliminate various repayment plans, require borrowers to repay larger amounts, and restrict future loan availability.
In a stark contrast to these cuts in safety net programs, the bill allocates significant funds towards immigration enforcement and military spending.
Specifically, approximately $175 billion is designated for immigration-related efforts, including substantial investments in Trump’s border wall, enhancing US Customs and Border Protection (CBP) facilities, and increasing detention capacities for unauthorized immigrants.
In addition, the military is slated to receive around $150 billion, funding initiatives such as the construction of Trump’s envisioned “Golden Dome” missile defense system and further investment in shipbuilding, munitions, and other military priorities.
As the bill stands, the projections indicate that the nation’s debt will swell by at least $3 trillion if enacted.
The current trend of significant deficit-increasing legislation persists, leading to growing concerns about the long-term sustainability of federal finances, especially as interest payments on the national debt climb higher.
While Republicans optimistically argue that the tax cuts will stimulate the economy and offset these debt concerns in the short term, the broader economic implications remain uncertain.
With the cuts primarily targeting low-income populations and Democratic initiatives, party leaders predict that the associated backlash may not significantly impact their standing in upcoming elections.
Though the One Big Beautiful Bill may present some immediate benefits, its long-term effects on fragile sectors of society, increasing national debt, and potential economic repercussions warrant scrutiny.
The debate surrounding this comprehensive proposal reflects a broader ideological divide on fiscal policy priorities, safety net provisions, and the future direction of American economic growth.
image source from：vox
