$4.5T in tax cuts extended

• Extension of 2017 Trump Tax Cuts: The law makes permanent many of the tax cuts introduced in 2017, costing the U.S. Treasury around $4.5 trillion over a decade.
• Corporate & Business Incentives: Maintains the 21% corporate tax rate, introduces new deductions for small businesses, and provides tax breaks for gig workers and tipped employees.
• Middle-Class Adjustments: Alters income tax brackets to favor middle-income earners, though critics say the wealthiest still benefit most.
• Massive Spending Cuts:
  • Cuts $1 trillion from Medicaid.
  • Reduces food assistance (SNAP) significantly.
  • Other social safety net programs also face deep reductions.
• Increased Military and Border Spending:
  • Boosts defense budgets.
  • Allocates funds to expand border security and immigration enforcement.
• Projected Economic Impact:
  • The Congressional Budget Office (CBO) estimates the bill will add $3.3–$3.4 trillion to the national deficit over the next ten years.
  • Up to 11–12 million Americans could lose health insurance due to Medicaid cuts.

Public Reaction and Political Fallout

Supporters claim the bill will stimulate job creation, attract foreign investment, and revitalize manufacturing by keeping taxes low.

Opponents argue it:

• Deepens wealth inequality.
• Endangers healthcare access for vulnerable populations.
• Shifts the tax burden onto the working and middle class over time.

Democrats have vowed to challenge the bill in court and make it a central issue in the 2026 midterm elections.