The tax and spending bill signed by Donald Trump on July 5 is already being hailed as one of the president’s key domestic victories. Informally dubbed the Big Beautiful Bill, the document encapsulates core elements of Trump’s economic agenda, including extended tax relief and large-scale infrastructure funding. However, behind the show of success lie several potential complications — from a ballooning deficit to cuts in critical social programs.

What changes for taxpayers and businesses

Spanning nearly 900 pages, the law introduces a wide range of measures affecting both American families and businesses. Trump has extended tax breaks originally enacted in 2017: the corporate tax rate remains at 21%, and the top individual income tax rate stays at 37%.

The bill also includes a number of other initiatives:

• Increasing the child tax credit to $2,500 until the end of 2028
• Creating «Trump accounts» for newborns with an initial $1,000 deposit from the government
• Raising the cap on local tax deductions from $10,000 to $40,000
• Supporting semiconductor manufacturers through investment tax credits
• Encouraging support for U.S.-made vehicles via car loan deductions
• Allocating $46.5 billion for the U.S.–Mexico border wall and $45 billion for new migrant detention facilities.

As a result, the main beneficiaries of the bill include families with children, major manufacturers, high-tax states, and sectors prioritized by the Trump administration.

Rising costs, uncertain revenues

The bill sparked heated debate not only between Democrats and Republicans but also within party lines. The main point of contention: uncertainty over how all the new spending will be financed. Tariffs were initially expected to cover a large share of the costs, with spring 2025 estimates suggesting they could bring in $7 trillion over a decade. However, these projections now seem overly optimistic.

According to recent forecasts, the total budget deficit could grow by $3.3 trillion by 2034.

To offset part of the spending, the bill introduces significant cuts across various federal programs — primarily in the social safety net.

The most notable reductions affect:

• Medicaid: more than 12 million people may lose healthcare access by 2034
• SNAP food assistance: budget cuts will impact the most vulnerable households
• Green energy: elimination of subsidies and credits may force project closures and result in the loss of up to 830,000 jobs

Analysts warn that these measures will disproportionately affect low-income Americans and industries previously championed for addressing climate change.

Political gains vs. economic risks

Symbolically, the Big Beautiful Bill signals Trump’s determination to push forward with his policy platform despite criticism. In practice, however, the law may bring with it a range of challenges — from rising deficits to mounting social tensions.

While the political payoff is clear, the economic consequences remain uncertain. Whether this law truly proves «beautiful» for everyday Americans is something only time will tell.