Trump’s Major Legislative Victory: Who Benefits and Who Faces Challenges?

The recently passed “One, Big, Beautiful Bill Act” has been hailed by President Donald Trump as a landmark achievement, promising significant economic impacts. Corporate America is set to benefit substantially, with business groups like the US Chamber of Commerce and Business Roundtable endorsing the legislation. The bill makes permanent the tax cuts from the 2017 Tax Cuts and Jobs Act, allowing businesses to fully deduct equipment costs in the first year and restore immediate deductions for research and development expenses. Manufacturers gain from provisions enabling immediate deductions for new facility construction, particularly for semiconductor firms, with enhanced tax credits for US-based chipmaking. Small businesses and partnerships also see advantages, with a deduction for pass-through entities increased to 23% in the House version. High-income households, especially the top 20%, could see annual income gains of nearly $13,000, while the wealthiest 0.1% may gain over $290,000 annually, according to economic analyses.

Certain workers, particularly those in tip-based or overtime-heavy roles, will enjoy temporary tax relief through 2028, with deductions of up to $25,000 for tips and $12,500 for overtime, subject to income limits. Residents in high-tax states benefit from a temporary increase in state and local tax deductions, capped at $40,000 for five years for households earning up to $500,000. However, the bill’s passage has sparked debate, with House Speaker Mike Johnson and Republican lawmakers celebrating its narrow approval, while critics highlight its contentious provisions. The legislation’s focus on economic growth and tax incentives aims to stimulate investment and job creation, but its broader implications remain under scrutiny as the House continues deliberations.

Despite the economic upside for some, the bill introduces significant cuts to safety net programmes, notably Medicaid and food stamps, impacting low-income Americans. New work requirements for Medicaid and expanded mandates for SNAP could result in millions losing benefits, with estimates suggesting over 10 million could be uninsured by 2034. Hospitals face increased financial strain due to reduced Medicaid support, with the American Hospital Association warning of “irreparable harm” to healthcare access. The clean energy sector also suffers, with tax incentives for renewables phased out by 2027 and electric vehicle tax credits ending abruptly, potentially raising energy costs and impacting jobs. Additionally, the bill’s $3.4 trillion deficit increase over a decade raises concerns about rising interest rates, affecting borrowing costs for consumers and businesses alike.