By Bobby Kearan, with research assistance by Perplexity.ai
Introduction
The U.S. Senate has advanced a sweeping legislative package known as the “Big Beautiful Bill,” a centerpiece of President Trump’s second-term agenda. The bill, which passed its first procedural hurdle with a narrow 51–49 vote, includes major changes to taxes, health care, military and border security, and energy policy. Here’s a breakdown of what’s in the bill, who stands to benefit or lose, and how it fits into the broader U.S. policy landscape.
Tax Policy and the U.S. Tiered Tax System
The U.S. federal income tax system is progressive and tiered. This means income is divided into portions, each taxed at a different rate. As income rises, only the amount above each threshold is taxed at a higher rate—not the entire income. For 2025, the main federal tax brackets for married couples filing jointly are:
- 10% on income up to $23,850
- 12% on income from $23,851 to $96,950
- 22% on income from $96,951 to $206,700
- 24% on income from $206,701 to $394,600
- 32% on income from $394,601 to $501,050
- 35% on income from $501,051 to $751,600
- 37% on income above $751,601
The “Big Beautiful Bill” extends and makes permanent many Trump-era tax cuts, and introduces new deductions for tip income, overtime pay, and auto loan interest—all designed to benefit middle- and lower-income Americans.
What Qualifies as Middle and Lower Income?
- Lower Income: Generally defined as below 200% of the federal poverty level (FPL). For a family of four in 2025, this is about $60,000 per year.
- Middle Income: Typically defined as between 200% and 400% of FPL. For a family of four, this is roughly $60,000 to $120,000 per year. In high-cost areas or for larger families, “middle class” can extend higher, sometimes up to $150,000–$200,000 for two-income households.
As an example, a couple earning $180,000 per year would fall just below the 24% federal tax bracket for married couples filing jointly, and is generally considered upper-middle class.
How the Bill Affects Different Income Groups
- Taxes: The bill does not raise taxes on middle- or lower-income Americans. It maintains or expands tax cuts for these groups. Most households will not see a tax increase.
- Health Care: If a family does not rely on Medicaid, the bill’s Medicaid cuts would not directly affect them. However, new work requirements and stricter eligibility checks will reduce coverage for millions of low-income Americans.
- Other Provisions: The bill’s impacts on military, border security, and immigration enforcement are broad and not directly tied to income level.
Medicare vs. Medicaid: The Cuts Explained
- Medicare: A federal program primarily for people 65 and older and certain younger people with disabilities. It covers hospital stays, doctor visits, and some drugs, with most enrollees paying premiums and out-of-pocket costs.
- Medicaid: A joint federal-state program for low-income individuals of all ages. It covers a broader range of services, including long-term care and nursing homes, often with little or no cost to the enrollee.
The bill imposes new work requirements and more frequent eligibility checks for Medicaid, and cuts federal funding by lowering provider taxes states use to fund Medicaid. This is expected to reduce coverage for millions, especially in rural areas.
Immigration and Economic Impact
The bill provides $150 billion for border security and mass deportations, aiming to remove 1 million undocumented immigrants per year. Economic analyses warn this could:
- Shrink U.S. GDP by 4–7%, a loss of over $1 trillion—worse than the Great Recession.
- Cause severe labor shortages in agriculture, construction, and hospitality.
- Drive up prices for food and housing due to reduced supply.
- Cut tax revenues by tens of billions, hurting Social Security, Medicare, and local services.
- Lead to job losses among U.S. citizens, not just immigrants, and destabilize millions of families.
Other Major Provisions
- Military and Border Security: Massive new spending on defense and border enforcement.
- Clean Energy: Early phase-out of renewable energy tax credits, likely slowing growth in the sector and risking job losses.
- Children’s Savings Accounts: A new “Trump Accounts” program provides a $1,000 deposit for babies, aimed at building savings for future education or expenses.
- Public Lands: The bill directs the sale of up to 1.2 million acres of public land for housing.
What’s Not in the Bill
Congressional term limits and age limits for members of Congress are not included in either the House or Senate versions of the bill. This was a point of confusion for some, but neither provision is part of the current legislation.
How Hurting Lower-Income People Affects Everyone
The impact of policies that reduce support for lower-income Americans is not limited to those directly affected. When millions lose access to health care, stable housing, or basic necessities, the effects ripple throughout society:
- Public Health: More uninsured people means more untreated illness, which can lead to larger outbreaks and higher health care costs for everyone.
- Economic Stability: When low-income families struggle, local businesses lose customers, and tax revenues decline, affecting schools, roads, and public safety.
- Social Cohesion: A society divided by economic hardship is less stable, less productive, and less able to address shared challenges.
- Community Well-Being: We are all interdependent. A strong, healthy community benefits everyone—not just those at the bottom of the income ladder.
Conclusion
The “Big Beautiful Bill” delivers sweeping changes: boosting military and border spending, cutting Medicaid, and targeting undocumented immigrants for mass deportation. While it maintains tax relief for most Americans, its health care and immigration provisions are expected to reduce coverage for millions, disrupt key industries, and shrink the economy—all with profound effects on families and communities nationwide. Ultimately, policies that hurt the most vulnerable do not just harm individuals—they weaken the fabric of our society. We are all better off when we work together as a community, not as warring factions.
(Research and drafting assistance provided by Perplexity AI)
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1: https://www.aljazeera.com/news/2025/6/29/senate-republicans-vote-to-advance-trumps-big-beautiful-bill
2: https://www.whitehouse.gov/articles/2025/06/president-trumps-one-big-beautiful-bill-prevents-the-largest-tax-hike-in-history-and-unleashes-economic-growth/ (Propaganda)
3: https://www.congress.gov/bill/119th-congress/house-bill/1
6: https://waysandmeans.house.gov/wp-content/uploads/2025/05/The-One-Big-Beautiful-Bill-Section-by-Section.pdf