Trump Signs ‘One Big, Beautiful Bill’: A Historic Tax Overhaul in America

New Delhi: The U.S. Congress, in a dramatic pre-dawn vote on Capitol Hill, passed the sweeping "One Big, Beautiful Bill" — a mammoth tax and spending package hailed by President Donald Trump as “one of the most successful pieces of legislation in American history.”

What’s in the Bill?

At its core, the legislation makes permanent the 2017 Trump-era tax cuts, originally set to expire in 2025. This includes slashing corporate tax rates to 20%, maintaining reduced individual tax rates for high earners, and eliminating estate taxes for ultra-wealthy families.

In addition, the bill restores key business deductions, such as 100% deductions on entertainment and travel expenses. It cuts back green energy tax credits, including subsidies for solar, wind, and electric vehicles. The bill enacts deep reductions in federal safety net programs, slashing funds to Medicaid, Supplemental Nutrition Assistance Program (SNAP), and housing assistance. It also caps IRS enforcement funding, likely reducing audits for top income earners and corporations.

Winners: Corporations, Investors, and High Earners

Wall Street responded with enthusiasm. The Dow surged 400 points in early trading Friday, buoyed by optimism from the corporate sector. Executives in the tech, fossil fuel, finance, and pharmaceutical industries have welcomed the bill, predicting increased profitability and investor confidence.

High-income earners, particularly those in no-income-tax states, are also expected to benefit significantly, as the bill retains favorable tax brackets and lifts the cap on state and local tax deductions.

Losers: Low-Income Families, Clean Energy, and Healthcare Providers

However, critics argue that the bill worsens income inequality and undercuts America's most vulnerable populations. The Congressional Budget Office (CBO) estimates that 15 million Americans could lose access to food, housing, or healthcare benefits over the next decade.

Healthcare providers, especially in rural areas, have raised alarms over the Medicaid cuts, warning that closures of small clinics and hospitals may spike. The American Hospital Association (AHA) called the measure "a devastating blow to public health infrastructure."

The clean energy sector, too, faces major setbacks. By scaling back subsidies and incentives, the bill could stall thousands of renewable energy projects nationwide. The Solar Energy Industries Association predicts over 75,000 job losses in the next two years alone.

Red States vs. Blue States: A Growing Divide

Analysts say the bill may deepen the economic and ideological divide between Republican-led and Democrat-led states. While red states with lower costs of living and fossil fuel industries may benefit from deregulation and reduced social spending, blue states reliant on federal support for education, healthcare, and urban transit may face budgetary crises.

Political Fallout and the 2026 Midterm Elections

While Republicans are celebrating a legislative triumph, Democrats are preparing to challenge the bill’s impact in the upcoming 2026 midterms.

Progressive groups are already mobilizing legal challenges and grassroots campaigns to reverse parts of the legislation.

However, Trump’s "One Big, Beautiful Bill" may well define his legislative legacy, with effects that ripple across the U.S. economy and society for decades. But as its benefits and costs begin to play out, the measure is certain to fuel heated debates about equity, fairness, and the direction of American economic policy in the years ahead.