Trump's 'Big Beautiful Bill' Delivers Tax Cuts for Wealthy, Deep Welfare Cuts for Millions: Who Wins and Who Loses?
US Senate passes GOP bill slashing taxes for the wealthy and cutting welfare programmes

The US Senate passed the One Big Beautiful Bill Act on 1 July, advancing a major Republican tax and spending package that sharply benefits high earners while cutting public support for millions.
Nicknamed the 'Big Beautiful Bill' by former President Donald Trump, the legislation includes £3.55 trillion ($4.5 trillion) in tax cuts and nearly £2.36 trillion ($3 trillion) in spending reductions over the next decade.
Tax Cuts Prioritise the Wealthiest
The bill makes permanent several provisions from Trump's 2017 tax law, including lower corporate tax rates and increased estate tax exemptions. It also expands deductions for private equity firms, high earners and business owners.
A key measure raises the state and local tax (SALT) deduction cap from £7,900 ($10,000) to £31,500 ($40,000), a change that overwhelmingly benefits upper-income households. The Tax Foundation estimates the plan will reduce federal revenues by £3.7 trillion ($4.7 trillion) through 2034, with nearly half of the benefits going to the top 1 per cent.
The legislation also introduces new deductions for tips and overtime pay, along with minor adjustments to the child tax credit. While middle-income earners are expected to see modest tax relief, the largest gains will accrue to those earning over £315,000 ($400,000) annually.
Cuts to Social Programmes Raise Alarm
To offset lost revenue, the bill includes sweeping cuts to federal welfare programmes. Medicaid, housing vouchers, food assistance and higher education aid will all see reduced funding over the coming years.
According to the Congressional Budget Office, these changes could result in up to 17 million Americans losing health coverage, as Medicaid enrolment declines and Affordable Care Act subsidies phase out. Work requirements for federal benefits will also be expanded.
Critics argue the changes disproportionately harm low-income families, disabled individuals and elderly Americans on fixed incomes. Democratic lawmakers, including Senator Elizabeth Warren, have condemned the bill as a 'direct attack on the country's most vulnerable'.
Long-term Fiscal Impact Raises Concern
Despite the spending cuts, the legislation is projected to increase the federal deficit by approximately £2.6 trillion ($3.3 trillion) over the next ten years. The CBO attributes this rise to reduced tax revenue and increasing debt servicing costs.
Republican lawmakers have defended the bill as a pro-growth measure, claiming the tax cuts will encourage domestic investment and economic expansion. However, independent analysts, including economists at the Brookings Institution, warn the long-term impact may include greater income inequality and significant fiscal strain.
Senator Michael Bennet called the bill 'fiscally reckless', arguing it undermines the nation's long-term financial stability in exchange for short-term political gains.
Public Reaction Remains Sharply Divided
Polling suggests the legislation is broadly unpopular with the American public. A Fox News survey conducted in late June found that 59 per cent of registered voters oppose the bill, while only 38 per cent support it. A separate KFF poll showed even higher levels of opposition, particularly concerning the proposed Medicaid changes.
Supporters of the bill, including Trump and Republican leadership, maintain that it delivers on promises to cut taxes and reduce the size of government. Trump praised the legislation as 'historic' and 'long overdue' during a rally in Pennsylvania.
Final Steps Before Becoming Law
The Senate's passage of the bill follows earlier approval by the Republican-controlled House in May. The bill now returns to the House for reconciliation to finalise amendments before heading to President Trump's desk.
With a Republican majority in both chambers, the legislation is expected to become law before the 4 July deadline set by House leadership. Its effects on the tax code, public services and economic outlook are likely to be felt for years to come.
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