What Donald Trump’s ‘big, beautiful’ budget bill means for the US economy

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Your guide to what the second period of Trump means to Washington, business and the world

Donald Trump is about to secure the approval of tax legislation and the leading spending in the lower chamber of the US congress.

The vast draft law, which will lead to US taxes and increase federal debts, is the focus of the second president’s agenda, and was the subject of a fierce battle between Republicans in the House of Representatives.

Legislators are divided into spending on health and social care programs and fears of the country’s enlarged debts. The president has repeatedly intervened to pressure them to pass the bill, warning last week that “we do not need coaches in the Republican Party.”

What is in the bill?

Trump, which is called Trump, calls Trump, which is called the “Law of the Great Grand Law” by Trump-extends to many tax cuts for 2017 that were approved during his first term, which is scheduled to end at the end of the year. These tax reductions of individual income include, increase child tax credit, eliminate taxes on advice and pay additional work, and the central campaign pledged during the elections last year.

Other measures include increases in real estate and gift tax and a wide range of commercial tax exemptions, as well as more than $ 50 billion to enhance border security, including more construction of a wall along the border with Mexico, which Trump pledged to complete.

Republicans have reduced the bill by reducing nearly $ 800 billion from Medicaid – the US Health Care Plan for the poor – and hundreds of other billions of Stamp Food and clean energy tax credits. It will also increase taxes on investment income from universities and private institutions, which collects more than 22 billion dollars, according to the joint tax committee.

What happens after passing in Congress?

Once the House of Representatives pass, the Republican Senate is submitted. There are 100 lawmakers in the Supreme Congress Chamber, and at least 50 members of the 53rd Senators will have to support the Trump bill for signing the law.

If the Senate makes any changes to the legislation, it will have to return to the House of Representatives for another vote. Since Democrats are expected to greatly oppose the draft law, his fate in the upper room depends on whether the leader of the Republican majority John Thun can formulate a compromise between moderate legislators such as Susan Collins in Maine and government control like Mike Li from Utah Paul Paul from Kentucky.

As in the House of Representatives, there will be overwhelming pressure from Trump to his party to support the legislation.

How will this affect America’s public affairs?

An analysis of independent bodies such as the non -partisan committee for a responsible budget and the Warton School at the University of Pennsylvania says that the draft law will add $ 3.3 million to the debts of the United States over the next ten years.

This means that the level of debt to the gross domestic product of the world’s largest economy will jump from 98 percent to 125 percent by the end of the period-a level that exceeds the previous high, which was reached in the aftermath of World War II.

The Trump team says that the legislation, along with the pro -growth policies, such as low taxes and the abolition of organizational restrictions, will help half of the financial deficit in the United States, which reached 6.4 percent as of 2024, to only 3 percent by the end of his term.

The President’s Economic Consultants claims that the draft law will enhance real economic growth by up to 5.2 percent over the next four years, creating or providing up to 7.4 million jobs and increasing investment by up to 14.5 percent during the next four years.

But others warn that the effect of tax cuts and other measures will undermine the American economy. “They can have an impact on enhancing growth, but certainly not enough to compensate for the impact on the ratio of US debt to GDP on the reconciliation bill,” said Mori Otold, former chief economist of the International Monetary Fund, who is now working at the Peterson Institute.

He added that, a few days after the United States lost its tripartite credit rating, “The US Treasury project can be placed on the road to Triple-B.”

What does it mean for Trump?

The approval of the legislation is very important for the president’s work schedule in the second term and will be demanded as a great political victory. He also hopes to improve the classification of his approval, which stands 47.3 percent, according to the average policy in the field of real policy.

If legislators fail to agree to the bill, tax rates in all fields will increase next year, which led to a financial success for families and businesses during the year of the medium renewal elections.

However, legislation can bring Trump’s counter -results. The Democratic Party attacks helped the original tax cuts 2017 in regaining control of the House of Representatives in the middle of the period 2018.