Trump’s ‘Big Beautiful Bill’: Good for billionaires, bad for workers and immigrants

San José, CA – On Friday, July 4, President Trump signed his “Big Beautiful Bill” of tax cuts for the wealthy, cuts to health insurance and food stamps for the poor, and more attacks on immigrants.

The tax cuts are so large that, despite historic cuts to Medicaid and SNAP (Supplemental Nutrition Assistance Program, commonly known as food stamps), the federal government will be borrowing more than $300 billion more each year for the next ten years.

The new law cuts taxes about $450 billion a year over the next ten years, mainly benefiting higher income households. Using adjusted gross income, we can see the richer a household, the more money Trump and the Republicans’ new law gives to them.

Those in the top 20% of income, over $120,390 per year, get a $5753 tax break. The ones in the top 1%, over $649,005 per year, get a $29,585 tax break. And those in the top 0.1% highest income, over $3.3 million, get over a $100,000 tax break.

On the other hand, low-income households will actually pay more taxes and receive fewer and lower benefits from the federal government. The new law takes from the poor and gives to the rich, Robin Hood in reverse.

Those in the lowest 20% of income, under $13,350, will lose $695 by paying taxes and/or losing SNAP and Medicaid benefits. The next lowest 20%, those from $13,350 to $36,475, will pay $125 more in taxes and/or get less in government benefits.

The biggest cut to government funded health care is a $85 billion a year cut to Medicaid under the Trump/Republican Party law. More than 10 million Americans will lose their health insurance because of these cuts, and millions more will have to pay more for their health care.

Many rural hospitals that rely on Medicaid payments for their patients will fold up shop, creating more “health care deserts,” where patients have to travel an hour or more for hospital care. More than 25 million people in the United States do not have any health insurance and the cuts will make the situation even worse.

$30 billion a year will be cut from SNAP, and there are more cuts to programs supporting local food banks. Similarly, more than 40 million Americans are considered “food insecure,” meaning that they are not sure of feeding their household throughout the month, and the cuts to SNAP and aid to food banks will force more to go hungry and/or rely on unhealthy foods.

The new law also hits hard with almost $170 billion more funding to ICE and Border Patrol, meaning that they can expand their raids and terrorization of Chicano and Latino communities and workplaces in particular. At the same time, the new law limits families of immigrants, including U.S.-born citizen children, from accessing government-funded health insurance and higher education. It also makes immigrants pay more to apply for court proceedings and to send remittances home to their families.

Last but not least, the new law will require hundreds of billions of dollars more borrowing each year. The federal government budget deficit is already at $1.9 trillion this year, the largest ever outside of times of war or economic crisis. The law could lead to the deficit growing to more than $3.2 trillion a year, even assuming that there is no recession or major war for the next ten years. This will lead to higher interest rates, which will tend to slow down economic growth in the longer term.

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