WHAT IS THE BIG BEAUTIFUL BILL
The Big Beautiful Bill, officially known as the One Big Beautiful Bill Act (OBBBA) ( yes they really gave it that name), narrowly passed the Senate with a 51-49 vote and is now on the brink of final approval. In essence, it is a continuation and expansion of the 2017 tax reforms, which had already sparked considerable controversy at the time.
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It includes:
An extension of the 2017 tax cuts (reductions for individuals and businesses)
New deductions for tips, overtime, and Social Security contributions
Incentives for faster depreciation of capital equipment
Elimination of certain subsidies for electric vehicles and renewable energy
Restructuring of Medicaid benefits
Supporters claim it helps avert an impending fiscal cliff in 2026, since many tax cuts were set to expire at the end of 2025. They speak of “preventing a sudden recession.”
BANKS
The American Bankers Association strongly supports the bill, believing it offers much-needed relief through tax reduction. Citi states that it will act as a growth tailwind, especially when paired with potential easing measures from the FED. Nomura sees it as a necessary move, noting that taxes are likely to rise soon if nothing is done.
On the flip side, critics warn of:
(a) a massive deficit – the bill is expected to add over $3 trillion to the federal debt over the next decade,
(b) complexity – more red tape for the already overburdened IRS, and
(c) inequality – certain workers benefit from the tax breaks, others don’t.
York from the Tax Foundation called it “fiscally irresponsible” and said it makes the IRS’s already difficult job even harder.
SECTORS
You may ask, So, which sectors are affected? Plenty!
In Defense, spending increases for shipyards, munitions, and the Golden Dome missile defense. Military expenditure is rising as part of an effort to restart the U.S. industrial base.
New criteria and cuts are coming to Medicare, altering the landscape for millions of beneficiaries.
EV (Electric Vehicle) credits are ending, and there are new restrictions on wind, solar, and hydrogen. Many companies in those sectors call the bill a “setback.”
Lastly, new capital depreciation incentives temporarily boost liquidity, but possibly at the cost of long-term investment.
In short, the bill reshapes the balance in many sectors. It may boost GDP in the short term, but leaves major questions about long-term sustainability.
MUSK VS TRUMP
And amidst all this, a major clash has erupted — one that’s been brewing for some time. Elon Musk has launched a fierce attack against Trump and the Big Beautiful Bill. And no, that’s not an exaggeration.
On his platform, X, he wrote:
“Any member of Congress who promised less spending and then voted for the biggest debt in history should be ashamed! And they will lose their nomination if it’s the last thing I do in this life!”
And he didn’t stop there. He threatened to create a new political party, the America Party, if the Big Beautiful Bill passes.
He claims to have invested $290 million to support Republicans and feels betrayed. At the same time, he accuses the bill of destroying the DOGE (Department of Government Efficiency), a program he personally initiated to cut government spending.
The cherry on top? Trump responded:
“Elon may have received more subsidies than any person in history. Maybe DOGE should take a good look at his companies.”
This is a public showdown between two of the most powerful figures in modern business and politics. The rift is real, and it has sent shockwaves through the markets. Many analysts believe this conflict could even impact the 2028 elections.
That said, the U.S. Senate has approved Trump’s bill, which extends the 2017 tax cuts and includes $1.2 trillion in spending cuts — with a narrow vote margin of 51 to 50.
P.S The bill cuts 1.2 trillion in spending while adding 3 trillion of debt it is amazingly stupid.