The US Congress on Thursday passed President Donald Trump’s $4.5 trillion ‘Big Beautiful Bill’, promising sweeping benefits for American workers, families, and businesses. Yet, as with any major overhaul of tax and spending policy, its true impact depends on where one stands in the American economy. The legislation draws a clear line between winners and losers, offering major gains to some while imposing new burdens on others.
Who are the winners?
The most immediate and substantial beneficiaries of the new law are corporations and high-income Americans. Small business owners and partnerships particularly those structured as pass-through entities also stand to gain significantly.
Corporations and high-income earners
By making permanent the tax breaks introduced in the 2017 Tax Cuts and Jobs Act, the bill cements lower corporate tax rates and restores the ability for businesses to fully write off the cost of equipment in the year it is purchased, a provision that had been phasing out since 2023. It also allows companies to once again deduct research and development expenses in the year incurred, reversing a change that previously required these deductions to be spread over five years.
Manufacturers are especially pleased, as the legislation permits full and immediate expensing of new manufacturing facilities, retroactive to January 19, 2025, and available for projects beginning before January 1, 2029. Semiconductor firms will benefit from enhanced tax credits for domestic chip production, an effort to boost US competitiveness in high-tech industries.
SALT deduction
For wealthier Americans, the bill provides a marked boost. The top 20 per cent of earners will see their net income rise by an average of nearly $13,000 annually, while the top 0.1 per cent stand to gain more than $290,000, according to the Penn Wharton Budget Model. Homeowners in high-tax states also benefit from a temporary increase in the state and local tax (SALT) deduction cap, now set at $40,000 for households earning up to $500,000.
Small businesses
The bill makes permanent a special deduction for small businesses and partnerships, allowing them to deduct up to 20 per cent of their income. The House version raises this deduction to 23 per cent, though the Senate retains the 20 per cent cap. This is a significant benefit for entrepreneurs, professionals, and investors who report business income on individual tax returns.
Select workers and senior citizens
Workers receiving tips or overtime pay will be able to deduct up to $25,000 in tip income and $12,500 in overtime income from federal taxes, subject to income limits. Seniors will benefit from a new $6,000 deduction, shielding more of their Social Security income from taxation through 2028.
What’s there for NRI’s?
For NRIs, the “Big Beautiful Bill” brings a key change: a 1% remittance tax on money sent abroad via cash, money order, or cashier’s check by non-citizens, including H-1B, H-2A visa holders, and Green Card holders. Transfers through US bank accounts or cards are exempt, so NRIs can avoid the tax by using these channels. The bill also raises immigration-related fees and tightens enforcement, making visa processes costlier and stricter. Most tax breaks in the bill benefit US citizens or residents with significant taxable income, so NRIs see little direct advantage beyond the lower remittance tax.
Who are the losers?
The primary losers under Trump’s “Big Beautiful Bill” include low-income Americans, clean energy companies, hospitals and healthcare providers, and future generations facing higher national debt.
Medicaid, SNAP cuts hit low-income Americans
The bill’s most controversial provisions involve sweeping cuts to the social safety net. Medicaid and SNAP (food stamps) will see historic reductions. For the first time in its 60-year history, Medicaid will require federally mandated work participation, and SNAP’s work mandates will expand to include parents of children as young as 14. According to the Congressional Budget Office, nearly 12 million more people could become uninsured by 2034.
Americans earning under $18,000 annually will see their after-tax, after-transfer income decline by $165 (a 1.1% drop). Those earning between $18,000 and $53,000 will gain just $30 (0.1%). Middle-income households, however, are projected to benefit with an average increase of $1,430 (1.8%).
Hospitals lost out
Hospitals, particularly those serving low-income Medicaid recipients, warn of “irreparable harm” from nearly $1 trillion in Medicaid cuts. A $50 billion fund for rural hospitals is viewed as insufficient to offset the expected rise in uncompensated care and reduced access.
Clean energy, EV sector affected
The clean energy sector is another major loser. Although a last-minute excise tax on wind and solar was removed, the bill eliminates renewable energy tax incentives by 2027 and ends electric vehicle tax credits after September 2025, potentially stalling growth in both sectors. EV makers will face the heat too. The bill ends tax credits for electric vehicle buyers up to $7,500 by September 2025, rather than 2032 as previously planned.
The bill is projected to add $3.2 to $3.4 trillion to the national debt over the next decade. Rising deficits could push interest rates higher, increasing borrowing costs for households and businesses while driving up the federal government’s own debt service costs. The Congressional Budget Office warns that interest payments alone may exceed $1 trillion annually, surpassing even defence spending.