TL;DR
- Trump’s landmark legislation, the “One, Big, Beautiful Bill Act,” reshapes tax codes, social benefits, and energy incentives.
- Corporations, high earners, and manufacturers stand to benefit from tax breaks and deductions.
- Low-income Americans, hospitals, and the clean energy sector face funding cuts and reduced incentives.
- Debate continues over whether the bill stimulates growth or widens inequality.
Corporate America Applauds Permanent Tax Relief
Among the most vocal supporters of the new legislation are large U.S. corporations, which see the bill as a windfall. The U.S. Chamber of Commerce and the Business Roundtable welcomed its passage, particularly its provision to make permanent the tax cuts from the 2017 Tax Cuts and Jobs Act (TCJA).
Notably, the bill revives two major corporate incentives:
- Full first-year depreciation of equipment purchases, retroactive to January 2025.
- Immediate R&D expense write-offs, reversing a 2022 TCJA rule requiring amortization over five years.
These provisions are expected to boost capital investment and R&D output, according to policy analysts.
Manufacturers and Chipmakers Get Targeted Incentives
The bill delivers specific support to U.S. manufacturing, especially in the semiconductor sector. A temporary provision enables manufacturers to:
- Immediately deduct the full cost of constructing new facilities.
- Access enhanced tax credits for building semiconductor fabs.
This incentive is retroactive to January 19, 2025, and applies to construction started before 2029. Industry lobbyists see it as a continuation of America’s bid to counter China’s dominance in chip manufacturing.
Tax Relief for Small Businesses and High Earners
Small business owners also emerge as beneficiaries. The National Federation of Independent Business praised the bill for preserving and expanding the 20% deduction for pass-through entities—now increased to 23% in the House version.
Meanwhile, high-income Americans are poised for significant after-tax income gains:
- The top 20% will see incomes rise by an average of $13,000, or 3%.
- The top 0.1% will gain more than $290,000 annually, per Penn Wharton Budget Model estimates.
The bill also raises the SALT deduction cap to $40,000 for households earning up to $500,000, temporarily easing the burden for those in high-tax states.
Key Winners and Losers from Trump’s “Big, Beautiful Bill”
| Group or Sector | Status Under the Bill | Impact Description | Source Link |
| Large Corporations | Beneficiary | Permanent tax breaks on R&D and equipment purchases | US Chamber |
| Semiconductor Firms | Beneficiary | Enhanced tax credits and facility construction write-offs | Business Roundtable |
| Small Businesses | Beneficiary | Pass-through deduction expanded to 23% for certain filers | NFIB |
| Top 0.1% Income Earners | Beneficiary | Avg. $290,000/year gain from tax and SALT deduction reforms | Penn Wharton |
| Tipped/Overtime Workers | Beneficiary | New deduction of up to $25K for tips and $12.5K for overtime | CNN |
| Low-Income Americans | Adversely Impacted | Medicaid and SNAP cuts, work mandates introduced | CBO |
| Hospitals | Adversely Impacted | $1T Medicaid cuts raise uncompensated care costs | AHA |
| Clean Energy Sector | Adversely Impacted | Stripped incentives for wind/solar by 2027, EV credits end Sept. | ACP |
| Federal Budget | Neutral/Adversely Impacted | Adds $3.4T to national debt, raises annual interest expense to over $1T | CBO |
Low-Income Americans Face Medicaid and SNAP Cuts
The bill introduces the first-ever federal work requirements for Medicaid, a cornerstone of the U.S. safety net. These changes, alongside tightened rules for SNAP benefits (food stamps), could impact millions of low-income families.
Key impacts include:
- Parents of children 14+ must meet work, education, or training thresholds to retain SNAP or Medicaid.
- According to the CBO, many dropped from Medicaid coverage will lack access to alternative insurance.
Households earning under $18,000 per year are expected to lose $165 in after-tax, after-transfer income, a 1.1% decline. Even middle-income families face tighter ACA premium verification rules, potentially leading to loss of federal subsidies.
Hospitals Brace for Impact Amid Budget Cuts
Hospitals are warning of deep operational strain, particularly in rural and low-income areas. The American Hospital Association (AHA) described the $1 trillion in Medicaid cuts as catastrophic, even with the bill’s creation of a $50 billion relief fund for rural hospitals.
“These cuts reduce access to care for all Americans and leave hospitals unable to serve vulnerable patients,” said AHA CEO Rick Pollack.
The impact is expected to compound health disparities and increase uncompensated care burdens at a time when inflation is already pressuring margins.
Clean Energy Sector Dealt a Setback
Despite avoiding a proposed excise tax on wind and solar, the final bill still terminates renewable tax credits by 2027. Developers will face more complex compliance requirements to claim any remaining incentives.
The American Clean Power Association (ACP) called the legislation:
“A step backward that risks eliminating jobs and increasing energy costs.”
Electric vehicle (EV) manufacturers are similarly disadvantaged, as the $7,500 federal tax credit for EVs will expire in September 2025, five years ahead of schedule. This change weakens a key driver for EV adoption.
Deficit Hawks Warn of Mounting Debt Risk
The Congressional Budget Office (CBO) projects that the bill will add $3.4 trillion to the federal deficit over the next decade. Elevated interest rates and borrowing costs could become a long-term liability.
Already, U.S. interest payments have:
- Tripled since 2017
- Surpassed the annual defense budget
- Are forecast to exceed $1 trillion/year
This dynamic could affect borrowing for homes, vehicles, and small business expansion, while also crowding out future federal spending.
Conclusion: A Win-Win or a Double-Edged Sword?
President Trump has hailed the “One, Big, Beautiful Bill” as a landmark policy that boosts growth, jobs, and industrial competitiveness. Yet, for low-income households, hospitals, and clean energy innovators, the legislation presents new financial challenges.
As the bill moves into the implementation phase, both supporters and critics will closely monitor its impact ahead of the 2026 midterm elections—a likely referendum on how Americans truly feel about this sweeping package.
