Donald Trump and the GOP had introduced the “One Big Beautiful Bill” a few weeks back. The bill that caused the biggest rift between President Trump and former First Buddy Elon Musk. Now, this GOP-led tax reform legislation will soon reach the president’s desk for a signature.
The bill had just passed the House with a narrow approval. The bill includes sweeping tax cuts for the rich and will push the country into trillions of deficit, as many experts have claimed. Aside from this, what is making people extremely worried is that the bill also outlines deep reductions in social welfare spending.
Supporters have praised the package as a long-overdue economic stimulus. However, critics argue that it disproportionately benefits the wealthy and strips support from low-income Americans.
At the heart of the bill are major tax breaks for high-income earners. Households with an annual income of above $217,000 will receive the largest share of relief.
Those in the $460,000 to $1.1 million income bracket will see an increase in their after-tax income by over $21,000, as per a report. These cuts are permanent under the current version of the bill. This supports critics’ claims that the reform is meant for only the top 1%.
This is the reality of the Big Beautiful bill—you decide. The wealthy get permanent tax cuts, capital gains breaks, and estate tax relief. You get temporary cuts, capped tip relief at $25K, and a $12.5K limit on overtime breaks. Once again, top 1% feast while the rest get crumbs. pic.twitter.com/jBWrR0hFed
— @Djsmith*56 (@DarrylJ1956) July 3, 2025
The legislation may offer short-term relief to most taxpayers. But the long-term analysis paints a different picture.
By 2030, an estimated 30% of households could see little to no benefit. There could even be a tax increase. Whereas, the wealthiest households will continue to reap benefits from nearly 60% of the remaining benefits.
This raises questions about equity and sustainability. This also questions the policy of the long-term structure of the U.S. tax code.
For middle-income families where annual earnings are between $100,000 and $200,000, the bill offers more modest gains. These households may see an increase in after-tax income of $3,000. Though there are smaller reliefs peppered here and there, the relative scale of the benefit is nothing in comparison to what the wealthiest Americans will receive.
Even SCOTT JENNINGS is speechless when he hears what the “Big Beautiful Bill” does to Kentucky:
– National park funding slashed
– 35 hospitals at risk
– 200,000 lose Medicaid
– Energy bills up 10%
There’s just no defending it. pic.twitter.com/dU4GQkPINI
— Dan Koh (@dank) July 3, 2025
The spending cuts mentioned in the bill are even more controversial. There is a proposal to cut Medicaid and SNAP programs (Food Stamps) by $1.2 trillion over the next decade.
Analysts have calculated that as many as 12 million Americans could lose their medicaid coverage. Additionally, there are new work requirements for food assistance. It will most likely reduce access for many low-income families.
Critics claim that these measures will harm the most vulnerable segments of the population.
There are some temporary provisions that are likely to become popular with families. One of these is the expanded child tax credit. This will again impose on families to have children to gain the tax benefits, which in turn will harm them once the benefits run out. These could lead families into poverty.
republicans: ‘This bill is awful!’
also republicans: I voted YES! pic.twitter.com/tTT82XSM2U
— Rep. Malcolm Kenyatta (@malcolmkenyatta) July 2, 2025
While Republican leaders claim the bill to be pro-growth, there are several red flags in this bill that are openly visible.
The Congressional Budget Office (CBO) estimates the bill could add as much as $3.3 trillion to the national debt over the next decade. Some GOP lawmakers have voiced concern about the long-term consequences, but ultimately supported the bill as a political necessity.
