Independence Day Bill: Trump Signs Sweeping Tax and Spending Package
Just in time for Independence Day, President Donald Trump signed his “Big Beautiful Bill” into law. Initially drawn up in May, the bill barely passed the Senate last Tuesday and passed the House floor on Friday making it to the 47th president’s desk for signature. On the surface, much of it is built on the first batch of tax cuts that were introduced during Trump’s first term.
What’s in the “Big Beautiful Bill”?
Writers Kevin Freking and Lisa Mascaro, in their 2025 article for AP News, “What’s In The Tax And Spending Bill That Trump Has Signed Into Law”, writes, “existing tax rates and brackets would become permanent under the bill, solidifying the tax cuts approved in Trump’s first term…it temporarily would add new tax deductions on tip, overtime and auto loans. There’s also a $6,000 deduction for older adults who earn no more than $75,000 a year, a nod to his pledge to end taxes on Social Security benefits…there are scores of business-related tax cuts, including allowing businesses to immediately write off 100% of the cost of equipment and research. Proponents say this will boost economic growth.”
A Patriotic Backdrop for Presidential Signature
Trump signed the bill during his White House Fourth of July military family picnic. In a statement to the press, Trump says, “we made promises, and it’s really promises made, promises kept, and we’ve kept them…this is a triumph of democracy on the birthday of democracy. And I have to say, the people are happy.”
Major Cuts to Healthcare Spending
The bill will bring drastic changes to the healthcare industry. According to a recent 2025 NPR article, “the tax and spending legislation the House voted to send to President Donald Trump’s desk on Thursday, enacting much of his domestic agenda, cuts federal health spending by about $1 trillion over a decade in ways that will jeopardize the physical and financial health of tens of millions of Americans… Under the legislation Trump is expected to sign on Friday, Independence Day, reductions in federal support for Medicaid and Affordable Care Act marketplaces will cause nearly 12 million more people to be without insurance by 2034.”
Winners and Losers Under the New Law
By far one of the most polarizing aspects of the bill is who it benefits and who it targets. From a business and industry perspective, such as big businesses, manufacturing, small businesses, and workers who earn tips, there are several tax benefits. From a low-income perspective, individuals receiving Medicaid and other related benefits: SNAP, Food Stamps, etc. will be hit very hard. This bill introduced new mandated requirements such as maintaining employment or enrollment in a job training program in order to continue receiving benefits. Those who may be dropped from Medicaid would have access to job based health insurance. Information surrounding Trump’s Big Beautiful Bill can be found on the White House’s official website.
