Trump rejoices as he affixes his signature to the newly enacted tax legislation
Celebrations echoed across the United States on Independence Day, with everything adorned in the colours of the US flag and fireworks lighting up the night sky. Amidst the festivities, a significant event took place at the White House, where US President Donald Trump signed the highly debated tax and spending bill, dubbed the "Big Beautiful Bill."
The bill, which passed through the House of Representatives after a prolonged struggle in Congress, is one of the most expensive laws in US history. It permanently extends tax cuts from Trump's first term and proposes new tax cuts, while significantly increasing spending on defense and border security.
The "Big Beautiful Bill" is a controversial fiscal policy decision by Trump, with critics arguing that it may lead to a harder and more unjust USA. The law is projected to reduce federal tax revenue substantially, with an estimated reduction of about $4.5 to $5 trillion between 2025 and 2034.
The tax cuts are aimed at stimulating economic growth through business investment incentives, such as 100% bonus depreciation and permanent expensing for research and development. However, the increased government borrowing necessary to cover deficits from the cuts could weigh on incomes and fiscal sustainability.
The economic growth generated by these tax cuts is projected to raise long-run GDP by about 1.1 to 1.2 percent, increase hours worked by nearly 938,000 jobs, wages by 0.4 percent, and capital stock by 0.7 percent. Yet, the increased government borrowing necessary to cover deficits from the cuts would reduce American incomes (Gross National Product) by about 0.6 percent, creating a gap between GDP growth and overall income gains.
The tax plan disproportionately benefits higher earners, with individuals making over $500,000 receiving an average tax cut of $58,000 in the first year alone. Critics argue that the bill effectively "steals from the poor to give to the ultra-rich," shifting tax benefits upward and potentially reducing resources available for social benefits.
Following his speech, Trump spoke to invited guests about the successes of his presidency, saying, "The world respects us again." The "Big Beautiful Bill" signing ceremony was accompanied by an air show, with an impressive display of aircraft, including a stealth bomber of the B-2 type.
The signing of the "Big Beautiful Bill" on Independence Day marks a significant moment in Trump's presidency, as the US continues to grapple with its economic future and the implications of this controversial fiscal policy decision.
The signing of the "Big Beautiful Bill," a contentious fiscal policy decision by President Trump, comes under review amidst the country's economic future. The bill, projected to reduce federal tax revenue substantially, is a topic of intense debate within the realm of policy-and-legislation, raising concerns about its potential impact on employment policies, community policies, and general news regarding politics and economics.
