A sweeping piece of legislation currently making its way through the US Senate could reshape the economy offering generous tax breaks to corporations and high-income households while slashing funding for health and clean energy initiatives. Popularly called as the “Big, Beautiful Bill” by Republicans, if approved, it will head back to the House and ultimately to President Donald Trump for his signature. While the bill could still undergo changes, the current version reveals a sharp divide between the beneficiaries and those who stand to lose. Here is a breakdown of the key winners and losers.
Winners
Corporations
The legislation would make permanent the corporate tax cuts introduced in 2017, locking in a 21% corporate tax rate (down from the pre-2017 level of 35%). It also extends tax breaks on investments in machinery, R&D, and Opportunity Zones until 2033, moves that business groups argue will boost domestic investments.
Higher-income households
High earners stand to benefit the most. The bill raises the cap on state and local tax (SALT) deductions from $10,000 to $40,000, a provision favoring households earning $200,000 to $500,000, especially in high-tax states like California, New York, and New Jersey. It also expands the estate tax exemption, allowing estates worth up to $15 million to pass on wealth tax-free, nearly double the $7 million cap set to take effect in 2026.
Tipped and overtime workers
Fulfilling a campaign promise, Trump’s bill exempts income from tips and overtime from federal income tax. Though this benefits a small slice of the workforce (2.5% for tipped and 12% for overtime), many of these workers already fall below the income tax threshold limiting the measure’s overall impact.
Fossil fuel companies
The bill strips away multiple Biden-era climate initiatives. It delays a methane pollution fee, rolls back emission standards for vehicles, and fast-tracks fossil fuel project approvals. A new loophole also lets some oil companies bypass the 15% corporate alternative minimum tax.
Losers
Younger Generations
The bill’s tax cuts are projected to add $3 trillion to the national debt over the next decade. The Congressional Budget Office warns this could lead to $600–700 billion in additional interest payments, costs that will burden future generations with higher taxes and reduced public spending on education, housing, and infrastructure.
Lower-income households
Massive cuts to Medicaid, around $1 trillion, could push 12 million people off health insurance over the next decade, especially in rural areas where Medicaid coverage is high. The bill also tightens eligibility for food stamps (SNAP), potentially slashing $300 billion from the program by enforcing work requirements for childless adults.
Health care workers
With fewer people insured and lower Medicaid funding, health care demand could fall, risking up to 500,000 job losses across clinics, pharmacies, and hospitals. Planned Parenthood and similar clinics could lose federal Medicaid funding, forcing closures or service cutbacks. Although the bill provides a $25 billion cushion for rural hospitals, it may not be enough to offset the losses.
Clean energy sector
Wind and solar developers face new tax penalties starting in 2027 unless they meet strict criteria. Tax subsidies and incentives from the Biden era are being rolled back, jeopardizing billions in clean energy investments. Consumers would also lose benefits for buying electric vehicles, solar panels, and energy-efficient home appliances, a blow to sustainability efforts and clean energy jobs, including in red states like Georgia and South Carolina.
Immigrants
The Senate’s “Big, Beautiful Bill” delivers tough blows to immigrant communities. For NRIs, the remittance tax is lowered from 3.5% to 1%, but its continued existence remains a burden. The bill earmarks $150 billion over four years for Trump’s immigration crackdown, including $46.5 billion for new border walls and $45 billion to expand detention centers. To fund this, it slashes Medicaid, SNAP, and clean energy programs that often support immigrant and working-class families. Legal immigration also becomes more costly: asylum applications will now cost $1,000, work permits $550, and appeals jump from $110 to $900. While $1.25 billion is allocated to expand immigration courts, core issues like backlogs and lack of legal aid remain unresolved. Instead, immigrants now face new risks, including arrests at court hearings.