House Passes $4.5T Trump Tax Bill Sparking Social Program Cuts, Deficit Concerns

President Donald Trump's "One Big Beautiful Bill" (OBBB) is a substantial 10-year tax-and-spend plan that includes $4.5 trillion in tax cuts largely benefiting high-income earners, particularly those making over $460,000 annually, with the top 1% receiving the largest average cuts. While middle-class taxpayers see some benefits, such as increased child tax credits and a higher standard deduction, the bill also cuts over $800 billion from social programs like Medicaid and food stamps, resulting in millions losing coverage and shifting costs to states. Moody's downgraded the U.S. credit rating from AAA to AA1, warning of deteriorating fiscal performance amid rising deficits exacerbated by the bill. Republicans defend the bill as a return to conservative economic principles focused on growth through tax cuts and incentives, arguing that tariffs under Trump's trade policies offset some fiscal impacts. However, critics emphasize that the bill's deficit expansion and social program cuts risk deepening income inequality and harming vulnerable populations. The political landscape reflects shifting GOP dynamics, with Democrats highlighting Medicaid reductions to expose divisions within Trump's coalition.