Razor-thin margin inches Trump’s Big Beautiful Bill through the Senate

What’s Inside the Big Beautiful Bill?

The ‘Big’ behind the Big Beautiful Bill essentially stands for having multiple provisions being altered across different sectors namely – healthcare, taxes, military, and immigration – all in one go. Whether it proves to be beautiful? Time will only tell

The first and the most controversial bucket being Extending Tax Cuts. Trump plans to extend the 2017 Tax Cuts and Jobs Act, which infamously favoured the rich more, by basically permanently slashing corporate taxes, top individual taxes, doubling real estate exemptions. The advantages for middle class were minor and less substantial and would mostly be eaten up by inflation itself. This includes cutting taxes on tips or overtime. But these taxes were about to expire in 2025 but can be permanently reinstated if the bill turns to be a law.

According to a report by The Investor’s Business Daily, Senator Thom Tillis claimed that the Medicaid Cuts would kick off about 663,000 citizens of North Carolina off their health plans. You ask why would Trump push for cuts on Medicaid, such a basic essential? Short and Simple answer is he wants a government who spends less on public welfare, and more on defence infrastructure, and tax cuts. It’s also to pay for massive tax cuts and heavy military spending. Additionally, Trump’s political genius found it easier, as Medicaid only covered low-income families, disabled people and elderly in nursing homes, those who anyway don’t vote in high numbers.

The next ‘beautiful’ change Trump has under his vision is to remove undocumented immigrants from the country. The administration plans to grant $45 billion to the Immigration and Customs Enforcement and an additional $14 billion for deportation operations. The highlight of this move is the creation of a huge wall along the border of Mexico

Owing to the recent turbulent times in Geopolitical relations, be it India-Pakistan or Iran-Isreal, Trump has made a cameo everywhere and has apparently been the epicentre of resolutions. It doesn’t take a genius to figure why Trump would want a staggering $150 billion dollars for defence infrastructure. This includes more personnel, arms, weapons, equipment, technology, the whole package.

The other half of the military spending amount to the building of the Golden Dome, inspired by Isreal’s Iron Dome, the shield that shoots down incoming missiles. The controversy around this revolves around the question, why? Why is there a need for such significant military spending. The supporters call it national security, and the ones against it call it a ‘blank check’ for defence contractors and, they aren’t wrong. No wonder America has the highest military power in the world when you spend an amount equivalent to the annual defence budget of Germany, Japan, and India

Who doesn’t love drama? But when its between the richest man in the world and President of the United States, it’s a news that trends all over the world. What led to the fall out then? The Big Beautiful Bill cuts aids to green energy, which includes electric vehicles and solar establishments. Trump is far from a liberal mind, and favours fossil fuels over clean energy (on purpose). He has always been pro-oil, pro-fuel, pro-coal, because well that’s where the money is. He wants to make the Pacific coast an energy hotspot just like the Gulf, which eventually will end up creating more jobs and more revenue owing to the competitive nature of the firms. This move has nothing to do with the fact that all energy, coal companies of America are big political donors, right?

How will it affect common Americans?

The Bill as we’ve figured so far, heavily bends towards big corporations and the wealthy of America. But how does it affect the common citizens of the States? It does in good and bad ways, depending on personal preferences:

One might pay less in taxes! But for a while
For example, A person named, Alex, making $50,000 a year, gets a tax break of 3%, that’s a saving of $1500 annually. And a person named, Carlos, making $5,000,000 a year getting a tax break of $26,000. But wait, it gets worse, because Carlos can now use this

savings earn more with lower corporate taxes, lower taxes on investments. Essentially, widening the income gap between people even further. So even though rich people might be paying more in taxes, they can save also more through endless hidden loopholes.

To know more about who gains and who loses in bill, read this extensive industry-specific report.

You could lose health benefits
The bill makes heavy cuts to Medicaid. Millions of people could lose access to free and low-cost healthcare and other social programs

Jobs might grow and decline in specific industries
Energy-specific industries such as Oil, Gas, Coal, might see a surge in jobs owing to the heavy investment. The defence sector is likely to see an uptick too. Green Energy jobs might shrink due to subsidiary cuts.

Experts say the bill was rushed through so quickly that many details and changes still need to be carefully reviewed. “This is not normal” said Harris Eppsteiner, associate director of economic analysis at the Yale Budget Lab. “Laws made this quickly usually aren’t the result of careful, thoughtful planning meant to grow the economy, boost savings or encourage investments”

The criticism Behind It

Well, everyone is entitled to opinions, right? But when it comes about adding a humongous $3.3 trillion to the national debt, everyone is going to have an opinion. According to Economic Times, the bill made through the Senate even with growing concerns of the debt which has reached to 125% of its own GDP. It’s projected to take the national debt from $35 trillion to over $40 trillion in a few years, which will hurt the economy in unimaginable ways. Not to mention, that the bill is leaning towards favouring the rich and not so much for the middle class.

Source: Statista; Congressional Budget Office

Conclusion

The bill is on its way to the House of Representatives, where both possibilities are possible. It wouldn’t be surprising if the bill passes as the house has a slim Republican majority.

It can also take a backflip and be dropped, if a few moderate Republicans flip their agenda and agree to join the Democrats. Massive voter protests or public backlash, and pressure from activist groups could sway house members. If the house amends the bill, it must return to the Senate – where it barely even passed. But time is short, and odds favour it passing.