Staff (Government) – May 22, 2025

UPDATE: The U.S. House of Representatives passed this bill early this morning.

In May 2025, the U.S. House of Representatives advanced the “One Big Beautiful Bill,” a comprehensive legislative package championed by President Donald J. Trump to extend provisions of the 2017 Tax Cuts and Jobs Act (TCJA) while introducing new tax policies, spending cuts, and reforms. Aimed at boosting economic growth, securing borders, and reshaping energy policy, the bill has sparked widespread debate. Below, we explore the good, the bad, and the ugly aspects of this landmark legislation for Americans, drawing on insights from various sources.

The Good

The Big Beautiful Bill promises several benefits for Americans, particularly in the realm of economic relief and growth. It extends the 2017 TCJA tax cuts, which could increase take-home pay for many households by maintaining lower income tax rates and increasing the standard deduction. Specific provisions, such as exempting tips, overtime pay, and Social Security benefits from taxation, are projected to deliver annual gains of $400 to $5,000 for some low-income workers. Small businesses, a backbone of the economy, stand to gain from an increased tax deduction (from 20% to 23%) for 26 million entrepreneurs and the restoration of 100% immediate expensing for investments, potentially spurring job creation and economic expansion.

The bill also includes measures to boost domestic energy production by repealing Biden-era methane taxes and easing regulations on oil and gas development, which could lower energy costs for consumers. Additionally, it allocates $12.5 billion to modernize the Federal Aviation Administration’s air traffic systems, addressing staffing shortages and outdated equipment to improve travel efficiency. Supporters argue that these policies could drive GDP growth by 0.6% to 1.6% if key provisions like bonus depreciation and R&D expensing are made permanent, fostering long-term economic prosperity.

The Bad

Despite its promises, the bill raises significant concerns. Critics highlight its potential to add $3.8 trillion to $5.3 trillion to the federal deficit over a decade, depending on whether temporary provisions are extended. Many key tax breaks, including those for tips, overtime, and auto loan interest, are set to expire by 2028 or 2029, creating a “fiscal cliff” that could lead to future tax hikes or further borrowing. The bill’s phase-out of green energy tax credits from the Inflation Reduction Act, while saving $500 billion over ten years, may slow progress on climate goals and limit investment in renewable energy, potentially increasing long-term environmental costs.

The legislation’s funding for border security and immigration enforcement, including deportations, has drawn mixed reactions. While some see it as a step toward restoring order, others warn that cuts to Medicaid and SNAP could harm vulnerable populations, potentially leaving 8.6 million Americans uninsured or without aid. The temporary nature of some benefits and the complexity of new provisions, like the restrictive MAGA savings accounts, may also limit their effectiveness for average families.

The Ugly

The bill’s ambitious scope has exposed deep divisions within the Republican Party, risking political gridlock. Hard-line conservatives demand steeper spending cuts, while moderates oppose reductions to safety-net programs like Medicaid, complicating negotiations. The rushed timeline, with a Memorial Day 2025 deadline for a final vote, has raised fears of poorly vetted policies and unintended consequences, such as economic volatility from a $245 billion revenue loss in 2025 alone.

Moreover, the bill’s economic benefits may disproportionately favor wealthier households and corporations, as extending TCJA provisions primarily benefits high earners, and loopholes for pass-through income remain unaddressed. The proposed tariffs, intended to complement the bill, could offset its GDP growth by increasing consumer prices for goods like groceries, cars, and electronics, hitting low- and middle-income families hardest. Finally, the bill’s failure to address systemic issues like tax avoidance by the ultra-wealthy or IRS funding cuts could exacerbate inequality and weaken enforcement.

The Wrap Up

The Big Beautiful Bill offers a mix of opportunities and challenges for Americans. It promises tax relief, economic growth, and energy independence but comes with risks of rising deficits, reduced social services, and environmental setbacks. As Congress races toward a final vote, the legislation’s success will depend on balancing its ambitious goals with the needs of diverse American communities. Whether it delivers on its promise of prosperity or deepens economic and social divides remains to be seen.