Introduction
On this 4th of July, as the United States celebrates its national day, President Donald Trump presents a legislative piece bearing his signature style: the “Big Beautiful Bill.” This bill, extensive and over a thousand pages, aims to extend the tax cuts from Trump’s first term, which were nearing expiration. However, economists widely agree that maintaining this status quo is unsustainable.
Fiscal Ambitions and Unsustainable Deficit
The new legislation extends Trump’s initial tax cuts, which were set to expire. Republicans present this as maintaining the status quo. However, economists argue that this status quo is unsustainable due to the growing budget deficit, now at around 6.7% of the GDP and projected to either remain or increase, thereby escalating national debt levels.
Weakening Programs and Incentives
The legislative scissors target the most vulnerable areas, such as public health programs like Medicaid. Additionally, incentives for clean energy are eliminated. The Infrastructure for Reducing Inflation Act (IRA), approved under President Joe Biden, provided tax credits that made clean energy sources more affordable. This new legislation erases this progress.
Energy Demand and Lack of Provision
The timing couldn’t be worse. The U.S. electricity demand is rising at unprecedented rates due to factors like the burgeoning AI industry, electric vehicle adoption, and rising temperatures increasing air conditioning use. Without sufficient energy provision, prices will skyrocket.
Migratory Implications
The bill also impacts migration matters, introducing a 1% tax on remittances and limiting access to tax credits for medical insurance for certain immigrants. This change prevents many asylum seekers and temporary protected status holders from accessing these credits.
Legislative Approval Process
What stands out, both in U.S. and international media, is the process of approving this legislation. Many Republican congressmen oppose significant portions of the bill but voted under pressure to meet Trump’s symbolic July 4th deadline for delivering this legislative gem.
Parallel with Mexican Congress
This situation mirrors recent events in the Mexican Congress during an extraordinary session. A similar agenda, devoid of nuance, included controversial reforms like integrating the National Guard into the Army and a “spy law” allowing government access to private citizen data. The pattern is clear: adhering to the power’s agenda, regardless of agreement.
Key Questions and Answers
- What is the “Big Beautiful Bill”? It’s a comprehensive tax and energy policy bill extending Trump’s initial tax cuts, facing criticism for its potential to worsen the budget deficit and undermine clean energy initiatives.
- Why is the timing of this bill problematic? The U.S. faces a growing electricity demand due to factors like AI, electric vehicles, and increased air conditioning use. Without adequate energy provisions, prices could surge.
- What are the migratory implications of this bill? The bill introduces a 1% tax on remittances and limits certain immigrants’ access to medical insurance tax credits.
- How was this bill approved? Despite opposition from many Republican congressmen, the bill was passed under pressure to meet Trump’s July 4th deadline.
