President Donald Trump's "One Big Beautiful Bill," a comprehensive legislative package passed by the US Congress, is set to usher in significant changes across American society and its global economic standing.

While lauded by supporters as a pathway to renewed prosperity, critics warn of exacerbated inequalities and potential international friction. Its multifaceted nature means different groups will experience its effects in starkly contrasting ways, with effects extending even to distant nations like India.

How the Bill Will Affect American Citizens?

The "One Big Beautiful Bill" is designed to impact nearly every aspect of American life, from individual tax burdens to healthcare access and the social safety net. Its effects will be felt differently depending on income level, employment status, and reliance on government programs.

Who Gains?

Higher-Income Earners and Corporations: At its core, the bill makes permanent the $4.5 trillion in tax cuts first enacted during Trump's 2017 term, primarily benefiting corporations and wealthy individuals. New tax breaks for overtime pay and the elimination of taxes on tips will also put more money in the pockets of certain workers.
Homeowners in High-Tax States: The bill temporarily increases the cap on State and Local Tax (SALT) deductions from $10,000 to $40,000 for five years. This is a significant benefit for homeowners in states with high property and income taxes, allowing them to deduct a larger portion of these expenses from their federal taxable income.
Defense and Border Security Industries: The bill allocates substantial funding for border security, including expanding the border wall and increasing migrant detention capacity. The defense budget also sees a significant boost, with funds for a "Golden Dome" missile shield and space missions. This will likely lead to increased jobs and profits in the construction, defense, and surveillance technology sectors.
Seniors: The bill includes a temporary tax break of $6,000 for seniors that phases down as income increases. Additionally, people over 65 are eligible for an extra $6,000 deduction if their adjusted gross income doesn't exceed $75,000 for single filers or $150,000 for couples.
Working Families (Child Tax Credit): While some aspects of the bill might challenge lower-income families, the child tax credit is set to rise from $2,000 per child each year to $2,200. This could provide a small but welcome relief for many families with children.

Who Struggles?

Low-Income Americans and Vulnerable Populations: The bill enacts a staggering $1.2 trillion in cuts to critical programs like Medicaid and food stamps (SNAP). These cuts are implemented through stricter eligibility requirements, new work mandates for certain demographics (including raising the work requirement age for SNAP from 54 to 64 for able-bodied adults), and reduced federal reimbursements to states.
Healthcare Access: The Congressional Budget Office (CBO) estimates that nearly 12 million people could lose Medicaid coverage due to these changes, particularly affecting low-income and disabled Americans. The bill also blocks Medicaid from covering gender transition treatments and providing care to undocumented immigrants in some states. Rural hospitals are also at "immediate risk" of closure due to reduced Medicaid spending.
Food Security: Millions of Americans, especially those relying on SNAP, could see a reduction or loss of their food assistance. This could also indirectly affect school nutrition programs, as many students qualify for free meals based on SNAP eligibility.
Students and Higher Education: The bill proposes major changes to Pell Grant eligibility and student loan access. It would discontinue several widely-used repayment plans (like the Biden administration's SAVE plan), limit the government's ability to offer debt relief, and introduce borrowing limits for graduate and Parent PLUS loans. This could make higher education less accessible and lead to more student loan defaults,
Advocates for Green Energy and Environmental Initiatives: The bill eliminates tax credits for electric vehicles, home energy upgrades, and other green programs established under previous administrations. It also shuts down the Greenhouse Gas Reduction Fund. This signals a clear shift away from federal support for renewable energy and sustainable technologies, potentially impacting related industries and slowing the transition to a greener economy.
Immigrants: The bill significantly increases funding for Immigration and Customs Enforcement (ICE), including billions for detention facilities and hiring thousands of new agents, as part of a plan for expanded deportation efforts. New and increased fees for various immigration procedures, including applying for asylum, could also create barriers for those seeking legal status in the US.
Overall National Debt: While proponents argue that tax cuts stimulate economic growth, the CBO estimates that the tax cuts will increase the federal deficit by $3.4 trillion over the next 10 years, potentially reaching $4 trillion when borrowing costs are factored in. This massive increase in national debt could have long-term implications for the US economy, potentially leading to higher interest rates and reduced future government spending capacity.

In essence, the "One Big Beautiful Bill" represents a significant reallocation of resources and a shift in policy priorities. While some Americans, particularly those with higher incomes and in specific industries, may see immediate financial benefits, these gains are largely financed by cuts to social safety net programs and an increase in national debt. This could exacerbate existing inequalities and create significant challenges for vulnerable populations across the United States.

Global Ripples, Including for India?

The implications of this bill extend beyond US borders, with a complex and generally challenging impact on India:

Trade Tensions and Opportunities: While a new US-India trade deal is reportedly close, the "America First" stance and emphasis on reciprocal tariffs could still pose risks for Indian exports. However, the US's push to diversify supply chains away from China could also position India as an attractive alternative manufacturing hub.
IT Services and Immigration: Stricter H-1B visa policies could increase operational costs and limit talent mobility for Indian IT firms. Conversely, reduced US reliance on Chinese tech could open doors for Indian IT services in emerging tech fields.
Economic Growth and Investment: A potentially slowing US economy or global trade disruptions could indirectly affect India's growth. However, the overall pro-business environment in the US might still attract foreign institutional investments into India.
Energy and Defense: Stable global oil prices due to US energy policies would benefit India. Enhanced defense cooperation between the US and India could also lead to opportunities for India's defense industry.

In summary, the "One Big Beautiful Bill" is a landmark piece of legislation with far-reaching consequences for American citizens, creating a clear divide between those who stand to gain and those who will struggle. Its ripple effects are also set to influence international relations and economies, with India facing a nuanced landscape of both challenges and potential opportunities.

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