Introduction to the Big Beautiful Bill
The display of might outside was unmistakable, as was the soft power inside the building. President Donald J. Trump signed into law his nearly 900-page “Big Beautiful Bill” of tax breaks and spending cuts, affecting millions of Medicaid recipients while growing the Immigration and Customs Enforcement agency by thousands of workers. The Senate passed the bill earlier in the week, while the Republican-controlled House voted 218-214 in favor of it on Thursday evening, with all Democrats and two Republicans opposed.
Tax Cuts Take Center Stage
The BBB contains roughly $4.5 trillion in tax cuts, according to the Associated Press, and solidified the ones from Trump’s first term. On the teeter-totter of benefits, the wealthiest families will enjoy an average of $12,000 in tax savings, while the poorest people will have to pay an additional $1,600 a year, on average, mainly due to reductions in Medicaid and food aid. That analysis of the House version of the bill is according to the nonpartisan Congressional Budget Office. While temporarily adding new tax deductions on tips, overtime and auto loans, the bill also adds a $6,000 deduction for older adults making less than $75,000 a year. The child tax credit is bumped from $2,000 to $2,200, though millions of lower-income families will still be unable to get the full credit. Caps for state and local tax deductions, known as SALT, will quadruple to $40,000 for five years, offering some benefits to residents of higher-taxed states like California. Businesses will get a break because they will immediately be able to write off 100% of the cost of equipment and research, which some experts say will boost economic growth.
Deportations, a Border Wall, and Missile Defense
Another $350 billion is being allocated for border and national security, which includes spending on the U.S.-Mexico border and 100,000 migrant detention beds. ICE will receive funding to offer $10,000 signing bonuses to new employees, with the aim of hiring 10,000 officers and agents. Immigrants will fund some of these projects by paying new or increased fees, including when they apply for asylum. In total, the Department of Defense will receive roughly $1 billion in new funding for border security. Another $25 billion is being set aside for the U.S. to develop its own Israel-type of Iron Dome missile defense system, called the “Golden Dome.”
Clean Energy Gets Pummeled
Previous tax breaks meant to create incentives for wind and solar energy are being hacked dramatically. One incentive that will soon disappear is the electric vehicle tax break of $7,500 for new vehicles and $4,000 for used ones. That was supposed to initially expire in 2032. Instead, the credit sunsets on Sept. 30.
How is This Being Paid For?
Republicans are cutting back on Medicaid and food assistance programs for those below the poverty line. Many adults receiving Medicaid and food stamps, including those up to age 65, will now have to fulfill an 80-hour-a-month work requirement. Medicaid patients will also have a new $35 co-payment to contend with. About 71 million Americans use Medicaid, and 40 million benefit from the Supplemental Nutrition Assistance Program, or SNAP, commonly known as food stamps. The CBO estimates that 11.8 million Americans will become uninsured by 2034, and 3 million more will not qualify for SNAP due to the changes.
Conclusion
The Big Beautiful Bill is a comprehensive piece of legislation that has far-reaching implications for various aspects of American life, from tax cuts and border security to clean energy and social welfare programs. As the bill takes effect, it is crucial for citizens to understand the intricacies of the law and how it will impact their lives and the lives of those around them.
FAQs
Q: What is the Big Beautiful Bill?
A: The Big Beautiful Bill is a nearly 900-page legislation signed into law by President Donald J. Trump, which includes tax breaks, spending cuts, and allocations for border security and national defense.
Q: How will the tax cuts affect different income groups?
A: The wealthiest families will enjoy an average of $12,000 in tax savings, while the poorest people will have to pay an additional $1,600 a year, on average.
Q: What changes will be made to Medicaid and food assistance programs?
A: Many adults receiving Medicaid and food stamps will now have to fulfill an 80-hour-a-month work requirement, and Medicaid patients will have a new $35 co-payment to contend with.
Q: How will the bill impact clean energy initiatives?
A: Previous tax breaks for wind and solar energy are being dramatically reduced, and the electric vehicle tax break will sunset on Sept. 30.
Q: What is the estimated impact on health insurance and food assistance programs?
A: The CBO estimates that 11.8 million Americans will become uninsured by 2034, and 3 million more will not qualify for SNAP due to the changes.
