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The original "Big Beautiful Bill" refers to the Tax Cuts and Jobs Act (TCJA) passed in 2017 under President Donald Trump. This law gave the biggest and most permanent tax breaks to large corporations and the wealthiest Americans. The corporate tax rate was cut from 35% to 21%, and the estate tax exemption was doubled, allowing wealthy families to pass down more wealth tax-free. While some middle-class families received temporary relief through lower income tax rates and a higher child tax credit, those benefits are set to expire in 2025, making the long-term advantages heavily favor the rich.
Investors and multinational corporations also benefited greatly from the 2017 tax bill. Many companies used their savings for stock buybacks rather than increasing wages or hiring more workers. Wealthy investors gained from rising stock prices, and multinational corporations were able to bring back foreign profits at reduced tax rates. These provisions helped boost Wall Street but did little for working-class Americans, especially those in high-tax states who lost deductions like the State and Local Tax (SALT) deduction, which increased their tax burden.
Looking ahead to 2025, Republicans in Congress are proposing a new bill that would make the 2017 tax cuts permanent and expand them even further. This proposal includes larger deductions for tips and overtime, an increased SALT cap, and a bigger child tax credit. However, to pay for these benefits, the plan would cut funding to programs like Medicaid and SNAP, which millions of low-income Americans rely on. Critics warn that this new bill would mostly benefit wealthy individuals and corporations again, while causing millions to lose access to healthcare and food assistance. The Congressional Budget Office estimates the bill would add over $2.5 trillion to the national debt, raising serious concerns about long-term economic impact and fairness.
2025-06-26 17:51:36