Trump's Big, Beautiful Bill survives Senate showdown; who are the winners & losers? Know in 10 points

Time of India

13 hours ago

In a dramatic overnight session, Senate Republicans on Tuesday advanced President Donald Trump's sweeping tax and spending legislation past a critical hurdle, keeping the bill alive by the slimmest of margins.
The 50–50 split required Vice President JD Vance to break the tie, marking a tense victory for Trump's flagship economic agenda.
According to Reuters, the bill—combining nearly $4.5 trillion in tax cuts with deep reductions in social spending—triggered fierce debate within the GOP and uniform opposition from Democrats. Three Republicans—Thom Tillis, Susan Collins, and Rand Paul—voted against it, citing concerns over deficits and policy impacts.
Below are major points on the winners and losers emerging from this historic Senate vote, according to reports by NBC News and Al-Jazeera.
Winners:
Corporations:
Companies stand to benefit from the permanent extension of Trump-era tax cuts, including a
corporate tax rate
locked at 21%. Businesses investing in equipment, research, and Opportunity Zones will enjoy expanded incentives through 2033. The bill also preserves tax breaks for traditional car manufacturers by ending credits for electric vehicle purchases, potentially boosting demand for gasoline-powered cars.
High-income households:
The legislation sharply raises the deduction cap on state and local taxes from $10,000 to $40,000—a boon for wealthier homeowners in states with higher taxes. It also doubles the estate tax exemption, shielding inheritances up to $15 million. According to the nonpartisan Tax Policy Center, more than a third of the total tax relief would flow to households earning over $460,000 annually. In total, about 57% of the benefits would go to those making $217,000 or more per year. Analysts estimate the average household tax cut would be roughly $2,600 in 2026, with much larger gains at the top.
Tipped and overtime workers:
The bill delivers on Trump's promise to exempt tips and overtime from federal income tax. Though the benefit may be limited for low earners who already owe no tax, it will help some workers keep more of their paychecks. Under current law, employees must report tips over $20 per month to their employers, and this income is taxed. The legislation would eliminate federal tax liability on these earnings altogether, though workers would still owe payroll and state taxes.
Families with children:
If the legislation is enacted, the child tax credit would permanently rise from $2,000 to $2,200 per child each year. While this increase is smaller than the $2,500 credit included in the earlier House version, it still prevents the credit from dropping to $1,000 in 2026, as scheduled under current law.
Border security advocates:
A $350 billion boost is earmarked for border enforcement, including deportation operations, paid partly through new fees on immigrants.
Fossil fuel companies:
The legislation unwinds many Biden-era climate measures, eases methane pollution fees, and delays emissions rules, while adding tax carve-outs to help oil and gas firms bypass alternative minimum taxes. The Senate version also includes a provision to fast-track fossil fuel infrastructure projects, delaying penalties on excess methane emissions and rolling back restrictions on vehicle pollution.
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Losers:
Younger generations:
The bill is projected to add around $3 trillion to the deficit over 10 years. Rising debt will burden future taxpayers and limit the government's ability to fund education, housing, and infrastructure. The Congressional Budget Office estimates that total interest payments on the debt will soar, potentially consuming more than a third of federal revenues in the coming decades and reducing flexibility to respond to future crises.
Healthcare workers:
Cuts to Medicaid funding and insurance coverage could eliminate up to half a million health care jobs, while restrictions on funding for Planned Parenthood could shutter clinics. The bill also imposes new work requirements for Medicaid recipients under age 65 without disabilities, which could force millions off coverage. More than 71 million Americans are currently enrolled in Medicaid.
Clean energy sector:
Wind and solar developers face steep penalties on new projects starting after 2027. The rollback of subsidies threatens billions in investment and thousands of clean energy jobs. Additionally, tax incentives for consumers buying electric vehicles, solar panels, and energy-efficient appliances would shrink, making clean technology upgrades less accessible. EV manufacturers, including Tesla, have sharply criticized the bill, warning it could set back clean energy adoption by years.
Lower-income Americans:
Deep cuts to Medicaid and food assistance programs will hit vulnerable communities hardest. Work requirements could leave an estimated 12 million people without health coverage, particularly in rural areas. The bill would reduce spending on the Supplemental Nutrition Assistance Program (SNAP) by more than $68 billion over the next decade, which could lead to millions losing food assistance. In 2023, over 42 million people relied on SNAP each month to buy groceries.
While Republicans hailed the bill as a necessary step to reignite growth, critics warned it would deepen inequality and saddle the next generation with unsustainable debt.
The measure now heads toward negotiations with the House, where differences over spending cuts and tax provisions will have to be resolved before final passage.