The Seven Ugliest Provisions in Trump’s ‘Big Beautiful Bill’

Donald Trump’s “Big Beautiful Bill” is a nightmare in reverse Robin Hood. In order to give to the rich, it steals from the poor. The House approved a 1,038-page version that will increase the deficit by almost $4 trillion.

In order to accomplish this, the Trump tax bill extends (and in many cases expands) tax breaks for the wealthiest Americans while taking $880 billion out of Medicaid, depriving over 10 million Americans of health insurance and regular access to their doctors. Additionally, it adds more red tape to Obamacare while letting other subsidies expire, depriving millions more people of insurance.

The tax policy of the bill is regressive. The nonpartisan Congressional Budget Office estimates that by the end of the decade, it will lower the take-home pay of the bottom 10 percent of earners by 4 percent. Most households making less than $51,000 will see an immediate drop in their after-tax income, according to research from Trump’s alma mater, Penn Wharton. In the meantime, the bill provides a net tax cut of $124 billion to the top 1% of earners, increasing their incomes by almost $70,000 in the first year alone.

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The Trump bill essentially carries out Trump’s campaign sales ploys by providing short-term, three-year tax breaks on tips (costing $40 billion), overtime income ($124 billion), and auto loan interest ($58 billion). It also provides a tax credit for seniors that is intended to offset Social Security income taxes ($72 billion).

However, the tax bill, as approved by the House, also contains a number of unappealing clauses. Some are tax-related, such as the removal of taxes on firearm silencers or the termination of tax breaks for vehicles and clean energy. Others, such as the clause banning local and state regulation of AI for ten years, are merely superfluous.

The Big Beautiful Bill has seven horrible tricks up his sleeve, which are listed below.

1) Undermining the rule of law…

The courts and the rule of law would be significantly impacted by a clause that was slipped into the House bill and had nothing to do with taxes. Funding for enforcing court orders for contempt is blocked. The Trump administration may then be able to disregard court decisions without facing repercussions. Professor of law Erwin Chemerinsky of the University of California is raising the alarm that this is a violation of the fundamental principles of our democracy. Even if the government was found to have violated the Constitution, he writes in a post at Just Security that “nothing could be done” to enforce injunctions against the executive branch should this provision become law. Indeed, he continues, “the biggest impact of implementing the clause would be rendering innumerable current court orders unenforceable.”. The Trump administration’s numerous unlawful executive orders and actions are being overturned in court, and the administration’s compliance with the Supreme Court’s orders to “facilitate” Kilmar Armando Abrego Garcia’s return from the gulag in El Salvador has been, at best, patchy. These concerns are warranted.

2) Giving Wealthy Homeowners Rewards.

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The Big Beautiful Bill is justifiable for wealthy individuals in blue states. According to one analysis, it quadruples a tax break that “overwhelmingly benefits wealthy, white households.”. Here, we’re discussing the SALT (state and local taxes) deduction. The tax break makes sense. Its goal is to prevent people from being forced to pay federal taxes on the money they owe local governments. The Trump tax bill of 2017 reduced the previously unlimited deductibility of these payments to $10,000 in order to finance its massive tax cuts for corporations and the wealthy. This kept a break that benefits middle-class homeowners in blue states with high property taxes, like the Northeast or the West Coast, while removing it from the private-school and vacation home crowd.

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Due to their arguments that the SALT deduction limit is a form of double taxation, high earners in states ranging from California to New Jersey have since gained support from both political parties. A group of members of the House GOP who referred to themselves as the “very salty” five obstructed the Trump bill until the SALT deduction was increased to $40,000 and extended to couples making up to half a million dollars annually.

3) An advantageous arrangement for private schools.

There is a backdoor subsidy for private school vouchers created by the House Bill on the charitable giving side of the tax act. As opposed to a tax deduction, which is typically limited to 35 cents off taxes for every dollar donated, wealthy individuals who make donations to nonprofit organizations that distribute vouchers to private K–12 schools will now receive a tax credit. Every dollar given is equivalent to a dollar of taxes paid. The market value of stocks is also eligible for this tax credit, in addition to the value of cash contributions. In numerous situations, as detailed here, giving stock that has increased in value and enjoying the tax advantages would often yield a higher return on investment for donors than selling the investment and subsequently having to pay capital gains taxes. The administration is attempting to abolish the federal Department of Education while simultaneously subsidizing the departure from public education, with an estimated $23 billion in value over a ten-year period.

4. Don’t Leave Any Heirs Behind.

Without a gift to the descendants of billionaire families, no GOP tax bill would be complete. For a long time, the Republican Party has vilified the estate tax as the “death tax,” arguing that it threatens traditional family farmers. If nothing changes, the estate tax exemption for couples, which is currently close to $27 million due to Trump’s first tax bill, will drop to roughly half of that amount. The current exemption is made permanent by the “Big Beautiful Bill,” which also makes it inflation-indexed. It will be possible for a wealthy couple to leave $30 million to their descendants next year without having to pay any taxes. In a letter, Americans for Tax Fairness claims that over $200 billion in lost revenue over a ten-year period will result from this handout to fortunate heirs and heiresses. “”.

5) Shortchange immigrant children.

A MAGA tax bill requires anti-immigrant sentiment. This is made possible by the Big Beautiful Bill, which restricts the child tax credit to only citizen children of citizens. Children who have Social Security numbers are currently eligible for the child tax credit, provided that both parents have a taxpayer identification number issued to tax-paying immigrants. By requiring the parent or parents claiming the credit to have Social Security numbers as a stand-in for citizenship status, the BBB would raise the credit’s value to $2,500. It is anticipated that the change will deny this essential government assistance to almost two million citizen children living in mixed-status households.

6) You Will Not Have Insurance!

Implementing a work requirement for ostensibly “able-bodied” adults to continue being eligible for Medicaid, the government health insurance program for Americans with low incomes and disabilities, is one of the most contentious provisions in the Big Beautiful Bill. 80 hours of work or volunteer time per month is the stated requirement. States are responsible for implementation; some have long been ideologically opposed, while others are dedicated to increasing health coverage. Even prior to this new work requirement, Medicaid had stringent income caps, which meant that enrollees frequently had to deal with a tangle of paperwork and administrative obstacles in order to establish and maintain eligibility. They have to demonstrate that they are truly impoverished. On the other hand, The Big Beautiful Bill makes things worse. Ineligibility for subsidies for individual insurance plans offered under Obamacare will be the penalty for those who are expelled from Medicaid for not adhering to the work and work-reporting requirements. According to the CBO, the Trumpy Medicaid changes are intentionally going to deny coverage to 10-3 million people.

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7) Put in Work for Your Dinner.