On July 4, 2025, Trump signed into law the “One Big Beautiful Bill Act”, a sweeping tax and spending package heralded by the administration as a historic achievement for American workers, families and businesses. The legislation, which extends and expands the 2017 Tax Cuts and Jobs Act, introduces new tax breaks, increases funding for border security, and makes significant cuts to social safety net programmes.
The “One Big Beautiful Bill Act” is a multifaceted piece of legislation that combines tax cuts, spending increases and reductions in federal programs.
However, despite the administration’s enthusiastic promotion, recent polling indicates that Americans are deeply divided on the law, with many expressing skepticism about its benefits and concerns about its long-term consequences.
A Wall Street Journal poll conducted in July 2025 revealed that only 42% of Americans support the law, while 52% oppose it, reflecting broader unease about its impact on the economy, social programmes and income inequality.
The cornerstone of the bill is the permanent extension of the 2017 Tax Cuts and Jobs Act, which was set to expire at the end of 2025. This extension maintains lower tax brackets, higher standard deductions, and other provisions that broadly reduced taxes for individuals and corporations.
The law provides a temporary $25,000 annual deduction for tipped workers, effective through 2028. This applies to workers in industries like food service and cosmetics but excludes undocumented workers and phases out for incomes above $150,000 for single filers or $300,000 for joint filers.
A $6,000 “bonus” deduction for Americans aged 65 and older, intended to reduce or eliminate taxes on Social Security benefits for many. This deduction phases out for individuals with incomes over $75,000 or couples over $150,000 and expires in 2028.
The maximum child tax credit rises from $2,000 to $2,200 per child, with the Senate version requiring only one parent to have a Social Security number.
State and Local Tax (SALT) deduction cap, previously set at $10,000, increases to $40,000 through 2029, benefiting residents of high-tax states like New York and California. The cap reverts to $10,000 in 2030.
Temporary deductions include up to $12,500 for overtime pay and deductions for auto loan interest, both expiring in 2028.
The estate tax exemption increases to $15 million for individuals and $30 million for couples, indexed for inflation, providing significant relief for wealthy estates.
A new tax-advantaged savings account for newborns, allowing contributions up to $5,000 annually, with earnings growing tax-deferred.
The bill allocates substantial funds for priorities aligned with Trump’s campaign promises.
Over $46.5 billion for border wall construction, $45 billion for immigrant detention capacity, and $30 billion for hiring and training Border Patrol and ICE agents to support mass deportations.
Investments in naval fleets, the U.S. Coast Guard, and Arctic security, including $9 billion for icebreakers.
The bill incorporates elements of a stalled farm bill, increasing subsidies for large producers of crops like corn, soybeans, and cotton, and removing income caps for certain subsidies.
To offset the tax cuts and new spending, the legislation includes significant reductions to social programmes.
The bill imposes work requirements for childless adults and increases eligibility checks to every six months, potentially leading to 11.8 million Americans losing health coverage by 2034, according to the Congressional Budget Office (CBO). It also restricts states’ ability to use provider taxes to fund Medicaid.
Supplemental Nutrition Assistance Program (SNAP) means new work requirements for adults with children over 15 and stricter eligibility rules could remove millions from SNAP, exacerbating food insecurity.
The bill eliminates tax credits for electric vehicles (EVs), energy-efficient home improvements, and low-emission energy sources like wind and solar, with exceptions for nuclear power and biofuels.
Increased excise tax refunds for rum exports from Puerto Rico and the U.S. Virgin Islands, $1.2 billion for Secret Service protection, and $10 billion for space exploration.
Student loan changes included expanded Pell Grant access for short-term workforce training but new limits on student loan borrowing.
Despite the administration’s claims of widespread benefits, the Wall Street Journal poll highlights significant public skepticism. Only 42% of respondents support the law, compared to 52% who oppose it. The breakdown by political affiliation is stark: 94% of Democrats, 54% of independents, and 12% of Republicans view the law negatively. Nearly 70% of respondents believe it primarily benefits the wealthy, while at least half say it harms the poor, working class, Social Security beneficiaries, Medicaid and SNAP recipients, the economy and the federal deficit. This disapproval stems from several factors.
Analyses from the Congressional Budget Office and the Tax Policy Center show that the bill disproportionately benefits high earners. Households earning over $1.1 million could see tax cuts averaging $21,000 (4.4% increase in after-tax income), while those earning $30,000 or less may face tax increases by 2029 due to the loss of safety net benefits.
The CBO estimates that Medicaid cuts could leave 11.8 million uninsured, and SNAP reductions could worsen food insecurity, particularly for low-income households. Democrats and advocacy groups like the Center for American Progress have criticized the bill as “Robin Hood in reverse,” arguing it takes from the poor to give to the rich.
The bill is projected to add $3.3 trillion to the national debt over the next decade, according to the CBO, contradicting claims from the White House that it would have “zero impact” on the deficit. Independent analyses from the Penn-Wharton Budget Model and Moody’s confirm significant deficit increases.
While tax cuts for the wealthy, such as the estate tax exemption, are permanent, benefits like the senior deduction, no tax on tips, and overtime deductions are temporary, expiring in 2028. This has led to accusations that the bill prioritizes long-term gains for the rich over sustained relief for the middle and working classes.
The bill has faced sharp criticism from various quarters.
Billionaire Elon Musk, a former Trump supporter, called the bill a “disgusting abomination”, citing its $600 billion increase in the fiscal year deficit and the elimination of EV tax credits, which he argued harms future-focused industries like Tesla.
Democrats, including California Governor Gavin Newsom, have labeled the bill a betrayal of working families, pointing to its cuts to Medicaid, SNAP, and clean energy programs. Newsom highlighted that by 2029, low-income earners could face tax increases, while the top 0.1% receive an average $309,000 tax cut.
The American Hospital Association and independent grocers have warned that Medicaid and SNAP cuts could reduce access to healthcare and food, particularly in rural and underserved areas.
The termination of clean energy tax credits has drawn criticism from environmental groups and businesses, who argue it undermines investments in renewable energy and could cost jobs in states like Georgia and Wyoming.
Supporters of the bill, including the Trump administration and Republican lawmakers, argue that it delivers on campaign promises and fosters economic growth.
The White House claims the bill provides an average $5,000 tax cut for Americans, with those earning $30,000 to $80,000 seeing a 15% reduction in taxes. It also touts a $1.6 trillion deficit reduction through mandatory spending cuts, though this is disputed by independent analyses.
The “no tax on tips” and overtime deductions are framed as relief for working-class Americans, while increased farm subsidies and estate tax exemptions are seen as protecting family farms.
Investments in border security, ICE, and defense are presented as critical for reclaiming national sovereignty and addressing immigration concerns.
The bill’s long-term implications remain contentious. The Tax Foundation estimates a 0.8% increase in long-run GDP but a $4 trillion reduction in federal revenue over a decade, increasing the deficit by $1.7 trillion on a dynamic basis.
Critics argue that the bill’s regressive nature – favoring the top 10% while reducing after-tax income for the poorest 10% by 3.9% – could exacerbate income inequality. The cuts to Medicaid and SNAP may strain state budgets, forcing reductions in other areas like education or infrastructure.
Moreover, the elimination of clean energy tax credits could hinder the transition to renewable energy, potentially affecting jobs and innovation in the sector. The temporary nature of many tax breaks, combined with permanent cuts to social programs, has fueled skepticism about the bill’s fairness and sustainability.
The public’s lukewarm reception could have political consequences for Republicans, especially with midterm elections approaching in 2026. The bill’s unpopularity among independents (54% disapproval) and even some Republicans (12% disapproval) suggests potential electoral risks.
Critics like Representative Steven Horsford argue that the bill’s human costs – such as increased medical debt and food insecurity – will resonate with voters, who may hold Republicans accountable.
The “One Big Beautiful Bill Act” represents a bold and controversial step in Trump’s second-term agenda, combining significant tax cuts with deep reductions to social programs. While it delivers on campaign promises like “no tax on tips” and border security investments, its benefits skew heavily toward high earners, raising concerns about fairness and fiscal responsibility.
It is underscored that Americans are not fully sold on the law, with many worried about its impact on the poor, the deficit, and essential services. As the nation grapples with these changes, the debate over the bill’s legacy – whether it ushers in prosperity or exacerbates inequality – will likely shape the political and economic landscape for years to come.