Debunking 3 Major Claims About Trump’s Mega-Bill: What You Need to Know!

President Donald Trump’s major legislative push, often called the “big beautiful bill,” has sparked intense debate. Both Democrats and some Republicans have raised serious concerns about the proposal. This legislation is under scrutiny due to its potential costs and significant changes to U.S. welfare programs.

Recently, Elon Musk joined the discussion, threatening to start a new political party if the bill passes, expressing his worries about excessive spending. Here’s a closer look at how this bill might impact national finances, healthcare, and taxes.

Cost of the Bill

The White House claims the bill could reduce the deficit by over $2 trillion. However, many experts disagree, arguing it would likely add trillions instead. The Congressional Budget Office (CBO) projects that this bill could increase the deficit by about $3.3 trillion over the next decade. Increased national debt, currently around $36 trillion, might lead to higher interest rates. This could make things like housing and car loans more expensive for everyday Americans, stalling business investments and job growth.

Impact on Medicaid

Trump has assured the public that Medicaid—healthcare for about 71 million low-income Americans—will remain unchanged. But studies suggest otherwise. Analysis from the Kaiser Family Foundation indicates that the bill could slash $1 trillion from future Medicaid funding over ten years. The CBO estimates that nearly 12 million people could lose health insurance due to these cuts, with a smaller portion linked to citizenship issues.

Tax Implications

Trump has warned that not passing this bill could trigger massive tax increases. He claims it could mean a tax hike of up to 68%. However, the Tax Policy Center estimates a more modest average tax increase of around 7.5% for many households if current tax cuts expire. Also, 60% of the benefits from this bill could mainly go to wealthier individuals, leading to increased income inequality.

Experts like Bobby Kogan from the Center for American Progress argue that while the bill might offer a temporary economic boost, it will ultimately hurt long-term growth and worsen deficits.

Overall, this bill has many layers. While it aims for economic growth and tax cuts, the potential costs could outweigh the benefits, raising important questions for the future of American finances and social safety nets.

For more insights into the impact of this legislation, you can visit the Congressional Budget Office.

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