What is in Donald Trump’s giant tax-cutting bill?

US President Donald Trump concludes his goal of refining the tax discounts of $ 4.5 trillion through Congress, in a huge bill that would reduce spending on health care and increase government borrowing.

The draft law was approved by the Senate on Tuesday after a broken vote by Vice President JD Vance Fracture. It should now be approved by the House of Representatives, as a previous version was issued with only one vote, before Trump was able to sign him in the law.

The Republicans criticized the hawks and Trump supporter, billionaire Illon Musk due to government borrowing reinforcements. The White House refuses that criticism insists on a higher growth will tame the debts.

It was also criticized because of its reactionary effect on families, with the deviant benefits of high -income Americans.

So what are the main measures in the “big beautiful bill” and what will be the effect of the macroeconomic?

Large tax discounts

The bill will extend tax The discounts were offered during the first period of Trump in 2017, which was scheduled to end at the end of this year, and will fulfill his electoral promises to end taxes on advice and pay additional work.

In general, it contains approximately $ 4.5 trillion of net tax discounts, which are partially compensated only by savings, according to the non -partisan Congress budget office.

The package is a retreat in its influence on family income, according to the Yale Budget Lab Laboratory, where it is partially funded by discounts in spending on health care and the food aid program supports 40 million Americans.

YALE analysis estimates that tax changes in addition to social welfare discounts will decrease income after the tax by 2.3 percent, or $ 560, for the poorest of 20 percent of Americans.

The highest 1 percent will witness an increase of 2.1 percent, or about 32,265 dollars.

The Central Bank of Oman estimates that the bill will add more than $ 3.3 million to the national debt until the fiscal year 2034.

The committee related to the center of the federal budget is expected that the debt ratio to the gross domestic product will reach 130 percent in the same period. The interest on government debt, which is expected to reach nearly one dollar this year, can exceed $ 1.9 trillion in 2034 if the measures in the Senate Bill are permanent.

Economic impact

US Treasury Secretary Scott Payette with 3 percent of the deficit in the budget of GDP, but economists say that the draft law will lead the deficit to 7 percent annually.

This can be partially faced by the high revenues of customs tariffs, but the size of the income flow is not certain given that Trump’s continuous cutting and changing it in commercial policy. The draft law contains a 5 -meter altitude in the roof of government debt.

Huge disability sites come at a time of almost complete recruitment and inflation above the target. As a result, economic reinforcement of the bill will make life more difficult for the Federal Reserve, which is under severe pressure from Trump to reduce interest rates.

Neil Shering, the chief economist in capital economics, said that the deficit in this scale was logical after the financial crisis when the demand was depressed deeply, but it is a bad financial policy at this stage of the session. He said, “All this is a very ugly mixture I am afraid.”

Some investors have warned that the ghost of deficit and increased debt may lead to damage to American assets. But despite the decline in the dollar, bond markets have not yet appeared for fear of more borrowing.

Ins McVy, the administrative director of social security rudeness, has warned the short -term deficit thanks to the state of safe haven for the US dollar, but the high spending on social security rights in the thirties of the twentieth century.

He said: “It seems that the carrier is increasingly heading in the direction.”

Performance discounts on health care

The impact of legislation on health care has proven greatly controversial, as some Republicans swing on the unprecedented range to reduce spending.

The draft law will reduce health care spending by more than 1.1 trillion over the next decade and increase the number of people who do not suffer from health insurance by 11.8 million by 2034, according to recent CBO estimates. The largest part of the savings comes from a record decrease to the Medicaid program, a government insurance program for low -income Americans.

The draft law will reduce the number of people eligible for the program by asking most beneficiaries to show that they are working 80 hours a month. It will also reduce federal support for spending on health care of the states.

Discounts in the field of health care in North Carolina, Tom Teleles, a Republican, prompted opposition to the bill, saying that measures were at odds with the promises of the president’s campaign not to interfere in Medicaid. “It is inevitable that this bill will release the promise committed by Donald Trump,” said Teles.

Cash injection of military security and borders

Despite the discounts of spending elsewhere, two regions in particular will get large cash injection: defense security and borders.

The army earns an estimated $ 150 billion over the course of the contract, according to CBO. This includes 23 billion dollars to build the proposed “golden dome” missile defense system and 28 billion dollars to build ships, focusing on unmanned ships.

Republican Senator Roger Wek, Chairman of the Armed Services Committee, praised what he said was a “historic batch towards modernizing our army and defensive capabilities” that he said it represents “a promotion of generations for our national security.”

Meanwhile, 129 billion dollars go to internal security after Trump’s anti -immigrant speech and a pledge to immigrate to push him to the victory of the elections in November. The number includes $ 45 billion for the president’s border wall, and a similar amount for detention facilities.

Pressure on green energy

The renewable energy industry is scheduled to be severely pressured through the legislation, which limits many generous benefits that were included under the previous climate bill for President Joe Biden, the law to reduce inflation.

Wind projects and solar energy should be in service before the end of 2027 to remain qualified for Biden tax discounts, which leads to blatant warnings from developers.

Many Republicans have long called on clean energy benefits, but others represent the areas that have benefited from renewable energy sources projects. The consumption tax on wind and solar projects has been removed from the bill at the last minute to suspended Senate members.

Green industry groups criticized the bill. “Despite the limited improvements, this legislation undermines the basis for the return of manufacturing in America and global energy leadership,” said the Solar Energy Industries Association in a statement.

Data is visualized by Alan Smith and Molly Taylor