The United States Congress approved this Tuesday, by a narrow margin, the ambitious “One Big Beautiful Bill Act”, also known as the Great and Beautiful Law, one of the legislative pillars of the agenda of former President and current Republican candidate Donald Trump. The bill was passed with the support of the Republican majority in the House of Representatives and is now heading to the president's desk for enactment.
The law, regarded by its proponents as a "generational" package, includes significant tax reforms, a substantial increase in defense spending and border security, and severe cuts to social programs, which has sparked criticism from the Democratic opposition and international organizations.
Main points of the law:
Tax reform
- Permanently extend the tax cuts implemented in 2017 during Trump's first term.
- Exempts tips and overtime from taxes for workers earning less than $150,000 a year.
- Create what are known as "Trump Accounts," savings accounts with tax advantages for education, housing, or job training.
- The child tax credit increases to $2,500 until 2028.
- It allows you to deduct up to $10,000 in interest on loans for cars manufactured in the U.S.
- Raise the limit for the deduction of state and local taxes (SALT) to $40,000 for individuals earning less than $500,000 annually.
Defense and security spending
- Assign over $150 billion to the military budget.
- In terms of border security, $170 billion is allocated, including funds for the wall, technology, and agents.
Cuts to social programs
- Cuts more than $1.2 trillion in federal spending, primarily in Medicaid.
- Imposes work requirements to receive medical assistance.
- Reduce the subsidies of the food assistance program (SNAP).
- Gradually eliminate tax incentives for renewable energies.
Other provisions
- Increased fees for asylum applications and immigration permits.
- It establishes a 5% tax on remittances sent abroad.
- Create a National Heroes Garden with $40 million.
- It raises the debt ceiling by $4 trillion.
Critiques and Warnings
The president Joe Biden described the project as "reckless and cruel". The IMF warned about the impact on the fiscal deficit. Civil organizations estimate that up to 12 million people could lose health coverage.
A political message
Republican leaders stated that this law represents “the fulfillment of the America First agenda” and sent a message to voters: “All hard-working Americans should know: this law is for you.”
Frequently Asked Questions about Trump's "Great and Beautiful Law"
What is Trump's "Great and Beautiful Law"?
"The Great and Beautiful Law" is an ambitious legislative proposal driven by former President Donald Trump that includes tax cuts, increased spending on defense and border security, and reductions in social programs. This law aims to consolidate Trump's "America First" agenda and has faced criticism for its social repercussions.
What are the main tax changes introduced by the law?
The law includes permanent extension of the 2017 tax cuts, exemption from taxes on tips and overtime for workers earning less than $150,000 annually, and the creation of "Trump Accounts" with tax advantages. It also raises the child tax credit to $2,500 and allows deductions on loans for cars manufactured in the U.S.
How will the "Great and Beautiful Law" affect border security and defense?
The law allocates more than $150 billion to the military budget and $170 billion for border security, including funds for 701 miles of new border wall and the hiring of 3,000 new Border Patrol agents. This increase aims to strengthen security measures and immigration control at the southern border of the United States.
What criticisms has Trump's "Big and Beautiful Law" received?
The law has been criticized for imposing significant cuts to social programs such as Medicaid and SNAP, affecting millions of people. Democratic opposition and civil organizations warn of its negative impact on medical coverage and food security. Additionally, the IMF has pointed out potential adverse effects on the fiscal deficit.
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