The American government, under President Donald Trump, introduced a new bill informally referred to as ‘one big beautiful bill.” The bill is supposed to be major cuts to health programs, reducing credits for EVs, securing the border, and policy aligned with the America First agenda.
Read More: Why the U.S Has Cracked Down on High‑End Chip Exports to China: One Big Beautiful Bill: A Turning Point for U.S. Policy?The Trump administration is preparing to implement tax breaks on discounts. This move could potentially increase the U.S. national debt by approximately $3.3 trillion over the next ten years. The administration currently has a debt of $36.2 trillion with its lender.
What does this bill talk about?
In 2017, when Trump came into power, he signed the tax cuts and jobs acts, which lowered taxes and increased the standard deduction of all taxpayers, but it primarily benefited higher-income earners.
Those tax breaks are now coming to expire by the end of 2025; the new bill ends this offer permanently. It would also add some more cuts in the slashes.
How to secure borders with tax cuts?
The Trump administration is set to provide $350 billion for safety and border security plans. Approximately $46 billion was allocated for the construction of a wall along the US-Mexico border.
The government also allocated another $46 billion to fund 100,000 beds in migration detention centers. Additionally, there are plans to hire extra agents by 2029 to carry out the largest deportation in U.S. history of illegal migrants.
Tax cuts to Medicaid and energy resources
The administration speaks about cutting extra exemptions that were given to stable poor people in the country. Trump has planned to reduce funds to Medicaid, which is a firm that helps Americans who are poor and disabled to survive.
Stampede or System Failure: Why Do We Choose the Government?: One Big Beautiful Bill: A Turning Point for U.S. Policy?In recent times, almost 71 million people depend on Medicaid, and 40 million receive benefits through SNAP. According to the Congressional Budget Office, if this bill becomes law, an additional 11.8 million Americans would be left without health insurance by 2034.
This bill can lower the sale of EVs and solar panels as it’ll increase the cost of these items. As of now, the government provides 30% subsidies, which can end by September 30 this year. It would be the biggest challenge for Elon Musk and other electric and solar panel makers to deal within the USA.
Who benefits most?
According to Yale University’s report, after enacting this bill, people in the lowest income bracket will see their income drop by 2.5 percent, mainly because of cuts to SNAP and Medicaid, while the highest earners will see their incomes rise by 2.2 percent.
