Behind the Big Beautiful Bill: What’s in the US$4.5 Trillion Plan?

The US Congress has passed President Donald Trump’s massive US$4.5 trillion “Big Beautiful Bill,” which promises benefits for American workers, families, and businesses. But while some groups stand to gain big, others may face serious setbacks. Let’s take a look at who wins and who loses under this new law.

Who are the Winners?

1. Corporations and High-Income Americans

The bill makes permanent the tax cuts from Trump’s 2017 tax law. Corporate tax rates remain low, and companies can now write off equipment and R&D costs right away. This is especially helpful to manufacturers and semiconductor firms, who also get new tax credits to boost US chip production.

2. Small Businesses

Small business owners and partnerships, especially those that file taxes as individuals, can now deduct up to 20% of their income. The House even wants to raise this to 23%. This change supports entrepreneurs, professionals, and investors.

3. High Earners and Homeowners

According to the Penn Wharton Budget Model, the top 20% of earners will gain an average of $US13,000 per year. The top 0.1% could gain nearly $290,000. People living in high-tax states also benefit from a higher cap on state and local tax deductions.

4. Some Workers and Seniors

Workers who earn tips or overtime pay can now deduct part of that income from taxes. Seniors get a new US$6,000 deduction that shields more of their Social Security income from tax.

What About NRIs?

NRIs face a new 1% remittance tax when sending money abroad using cash or money orders. However, bank or card transfers are exempt. Immigration fees will rise, and visa rules will become stricter. Most other benefits apply only to US citizens or residents with high taxable income.

Read more: US Remittance Tax: How a New Proposal Could Hit Indian Families and the Economy.

Who are the Losers?

1. Low-Income Americans

Major cuts to Medicaid and food stamps (SNAP) will hit poor families hard. New work rules will make it harder to qualify. Nearly 12 million people could lose insurance by 2034.

2. Hospitals

Hospitals serving low-income patients may suffer from nearly US$1 trillion in Medicaid cuts. A US$50 billion relief fund is not expected to be enough.

3. Clean Energy and EVs

The bill will remove tax incentives for renewable energy by 2027 and cut electric vehicle credits by September 2025, hitting these industries hard.

Conclusion

Trump’s “Big Beautiful Bill” gives large tax cuts to businesses and wealthy Americans while cutting key support for low-income families and green industries. It may help short-term economic growth for some but could increase inequality, raise debt, and weaken healthcare and clean energy in the long run.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.