#大而美法案 The U.S. 'Big and Beautiful' Act Officially Takes Effect: Tax Cuts Amid Controversy

On July 4 local time, U.S. President Trump signed the 'Big and Beautiful' Act, marking the implementation of his signature legislative agenda since returning to the White House. The core contents of the Act include: extending the 2017 tax cuts (reducing corporate tax to 21%), eliminating taxes on tips and overtime pay, cutting $1.5 trillion in social welfare spending (such as Medicaid and food stamps), while increasing funding for defense and border security.

The Act passed in Congress by a narrow margin (Senate 51:50, House 218:214), with all Democrats opposing it, criticizing it as a 'rob from the poor to give to the rich' — the Congressional Budget Office estimates a $3.3 trillion increase in the deficit over the next decade, with the income of the poorest families decreasing by 4%, while the income of the wealthiest families increases by 2%. The impact on industries is varied: chip, energy, and defense companies benefit, while subsidies for electric vehicles and renewable energy are eliminated.

Analysis points out that the Act may stimulate the economy in the short term, but poses long-term debt risks, with the U.S. bond market facing selling pressure.