What do you think of when you hear “Big Beautiful Bill”? Do you think of a better economy, more money and jobs, better healthcare and living conditions for all, and a greater world for everyone? Depending on whether you are a Democrat or a Republican, you will likely have a different opinion on President Donald Trump and his plans.
On July 4, 2025, Trump announced the creation of his One Big Beautiful Bill Act. So what is even in the bill? This bill consists of tax cuts and extensions. This bill modifies the individual income tax rates from the 2017 Tax Cuts and Jobs Act (TCJA). The bill also increases the State and Local Tax (SALT) deduction cap for lower-income taxpayers, providing deductions for tips, overtime, and auto loans. Many people will be affected by these tax cuts and extensions, including individual taxpayers, lower-income taxpayers, workers with tips or overtime, and parents.
According to CNBC, many of the cuts for individual taxpayers will expire after 2025 unless Congress acts. The GOP can do this with a simple majority vote in Congress by using a special legislative maneuver called budget reconciliation.
“The top 1% of households (who make about $1 million or more a year) would get a 3.2% boost in after-tax income in 2027 via an extension of the Trump law,” according to the Tax Policy Center.”
The bill is also removing federal taxes on tips and wages until 2028. This bill has created Trump accounts that are a new type of tax-advantaged savings account for minors.This is a new tax-advantaged investment account for children under 18, which includes a one-time $1, 000 “seed” deposit from the U.S. government for eligible babies born between 2025 and 2028. Also, students and their parents cannot borrow more than $200,000 in total for both undergraduate and graduate loans. This bill imposes restrictions on Medicaid and modifies Supplemental Nutrition Assistance Program (SNAP) eligibility.
According to Chalkbeat, “The bill slashes spending on Medicaid, which provides health insurance to some 37 million children and is a critical revenue source for schools.¨
When kids are enrolled in SNAP, they automatically qualify for free breakfast and lunch at school. And when a lot of kids are enrolled in SNAP, it’s more financially viable for schools to provide free meals to all students. That has a number of academic and social benefits for kids.
There is also an expansion of immigration fees, while Immigration and Customs Enforcement’s (ICE) budget increases by 75 billion dollars. There will be increased military spending, and the bill is estimated to increase the federal deficit by over $3 trillion. During Trump’s first term, he signed the Tax Cuts and Jobs Act, lowering taxes for corporations and for individuals across most income brackets. Trump said that this would stimulate economic growth, but experts argue that this has helped wealthy Americans more than the lower class. Throughout Trump’s time as president, many do argue that what he’s enforcing only helps the wealthy become wealthier and doesn’t financially help or support lower income families.
According to the House Committee on the Budget, ¨The Bill worsens inequality, gives the ultra-rich a historic tax break, and makes working people worse off.¨
When including the cost of debt service, the Congressional Budget Office (CBO) finds that this bill adds over four trillion dollars to the national debt. Due to what Trump is enforcing, the public has become very divided with many different views on what is happening in the world. In the United States history of presidents, only three have been impeached by the House of Representatives, including Donald Trump during his first term. However, recent public opinion polls show that the country is divided on whether or not they think Trump should be removed from office. I have hope that soon the economy will change, foreign policies will be renewed, and people in office will rethink this bill.
