Donald Trump’s ‘big, beautiful’ tax-cut bill drawing closer: What will it achieve?

United States President Donald Trump declared that his ‘big, beautiful’ budget Bill promising ‘biggest tax cuts’ in the history of the country is nearing its completion as the Republican-led US Congress adopted a budget, unlocking unlocks trillions of dollars for his agenda – a plan Democrats have argued that if extended, the Bill would be in favour of the rich.

“Great News! “The Big, Beautiful Bill” is coming along really well. Republicans are working together nicely. Biggest Tax Cuts in USA History!!! Getting close,” Donald Trump announced on Truth Social.

What does Trump’s Bill do?

The new budget resolution allows the US government to borrow $5 trillion more – in a way increasing the country’s debt.

Borrow $5 trillion why? Allowing the US government to borrow $5 trillion more would help extend the tax cuts that former President Trump introduced in 2017 – set to expire soon. These tax cuts would now continue through 2034.

The Bill sets targets for overall spending and mandates $4 billion in cuts.

Democrats have feared that Donald Trump will break his promise not to touch Social Security – the federal welfare program for seniors and the disabled that makes up more than fifth of federal spending.

What happens if tax cuts are extended? White House explains

According to the White House quoting ‘The Economic Impact Of Extending Expiring Provisions Of The Tax Cuts And Jobs Act’ by Council of Economic Advisers, the wages will go up by “as much as $3,300/year” if the tax cuts are extended.

“Take-home pay for median-income households will increase by as much as $5,000/year,” it says, adding, “Short-run real GDP will be boosted by 3.3-3.8% and long-run real GDP by 2.6-3.2%.”

The Trump-led White House said the tax cuts will also save “4.1 million jobs from being destroyed” and “distressed communities will see as much as $100 billion in investment.”