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Politics
21 August 2025

Trump’s Big Beautiful Bill Sparks Tax Cuts And Backlash

Sweeping tax relief and welfare reforms bring savings for many Americans but trigger state budget crises, cuts to social programs, and deep partisan divides.

On July 4, 2025, President Donald Trump signed into law the sweeping "One Big Beautiful Bill," a piece of legislation that has since become a lightning rod for both praise and criticism across the United States. In a ceremony befitting the bill’s grandiose title—complete with fireworks and a stealth bomber flypast at the White House—Trump championed the measure as a victory for American families and businesses. Yet, as the dust settles, the country finds itself sharply divided over the bill’s impact, with some hailing historic tax cuts and others warning of painful cuts to social safety nets and state budgets.

According to an analysis by the nonpartisan Tax Foundation, the average American taxpayer will see significant federal tax savings in 2026. For example, Ohioans are expected to save an average of $3,175, just below the national average of $3,521, while Arizonans will save about $3,521, with residents of Maricopa County enjoying the largest average cuts in the state at $4,049. Wyoming, Washington, and Massachusetts top the list with the highest average tax cuts, while West Virginia and Mississippi see the smallest.

But these numbers only tell part of the story. The bill not only made permanent the tax cuts from Trump’s first term—it also introduced new breaks, such as deductions for tips and overtime income, a cut for seniors, and expanded child care tax credits. As Axios reported, these provisions are designed to free up money for Americans to spend elsewhere, a much-needed relief in a period where wages have struggled to keep pace with inflation and tariffs threaten to push costs even higher.

Republican lawmakers have been quick to tout these benefits. Senator Bernie Moreno of Ohio, during a three-day tour across his state, highlighted the bill’s “no tax on tips, no tax on overtime, and expanded child care tax credits.” He went further, stating at a stop in Columbus, “Ultimately, what I’d like to see, like for me, the North Star, what we know we did a good job, is if you make $100,000 a year in this country, you don’t pay any federal income taxes at all.” Missouri Congressman Jason Smith, speaking at the Missouri State Fair, emphasized the importance of the bill’s permanent small business tax deduction, saying, “If we wouldn’t have made that permanent, people’s tax rates would have gone from 23% to 28% to 43.4%—that would have been detrimental.” Smith also noted that the bill folded in 80% of the Farm Bill, increasing all reference prices for farmers by nearly 20%—the first such increase in seven years. He called it “about time that farmers are not forgotten in Washington, D.C.”

Yet, beneath the celebration, a chorus of concern has grown louder. The bill’s steep cuts to social spending—particularly food benefits and Medicaid—have drawn sharp criticism from Democrats and advocates for low-income Americans. In Oregon, the “Big Beautiful Bill” means SNAP (Supplemental Nutrition Assistance Program) benefits will no longer rise with inflation, putting pressure on families as food prices continue to climb. About 17,000 Oregon households without a member over 60 or with a disability will also see their energy assistance reduced by roughly $58 a month. And the state faces a $412 million shortfall for the Rose Quarter Improvement project in Portland, a critical 1.8-mile stretch with the highest crash rate on any urban interstate in Oregon, according to ODOT. The loss of federal funding will delay the project, likely increasing long-term costs.

Medicaid changes may prove even more disruptive. As outlined by the state, “Refugees, asylees, victims of human trafficking and other people who are lawfully residing non-citizens will no longer be eligible for federally funded Medicaid benefits. This will result in disruption of care and potential coverage loss while increasing state costs to provide similar coverage to this vulnerable population.” Emergency rooms, obligated to treat all walk-ins, may see uncovered costs passed on to other patients.

Ohio’s Representative Emilia Sykes, campaigning against the legislation during the August recess, warned, “In a district like this one where Medicaid pays and reimburses our largest employer, not only is the health and well-being of our community going to be impacted, but those jobs are going to be impacted if these hospital systems are forced to lay people off and it will decimate our local economy.” Former Senator Sherrod Brown, who recently launched a Senate comeback bid, cited the bill as a key motivator: “We can’t sit on the sidelines. We gotta’ get back in this. Because I can help make this better. I took on, I’ve built my career on taking on a rigged political and economic system.”

The impact is not confined to individuals or families. States are also feeling the pinch. In Colorado, lawmakers returned to the capitol for a special session to address a $750 million budget hole, a direct result of the bill’s changes to the federal tax code. Earlier in the year, they had already closed a $1.2 billion shortfall, but the new gap has forced a scramble to minimize the fallout for Coloradans. The session, expected to last five days, may also address unrelated issues, such as pausing the state’s wolf reintroduction program and refining a controversial AI law set to take effect in 2026.

For Missouri’s agricultural community, the bill is being sold as a game-changer. Congressman Smith pointed to the Acre Act, a provision incentivizing local banks to loan to farmers at a reduced tax rate. Still, critics argue that the legislation’s tax cuts and welfare reforms disproportionately benefit the wealthy, leaving low-income and vulnerable Americans to bear the brunt of cuts to social programs.

Public reaction to the “One Big Beautiful Bill” has been anything but beautiful. CNN’s data analyst Harry Enten described it as “the most unpopular bill that was passed” since 1990, surpassing even the negative ratings of Obamacare. Major polls from CNN, CBS, and Fox News put the bill’s net favorability between minus 19 and minus 22 points, while Pew and the Wall Street Journal recorded slightly less dire numbers, but still deep in negative territory. Among independent voters, the bill is viewed unfavorably by a staggering 39-point margin. “Elections are won and lost in the center of the electorate,” Enten observed. “If this is what the election is about, you can wave adios, amigos—goodbye to the Republican majority in the House, and you may be able to say it to that Republican majority in the Senate.”

Even within the Republican Party, the bill lags behind Trump’s own popularity. Vice President JD Vance has been dispatched to pitch the bill across the country, but the administration is reportedly considering a rebrand, with strategists suggesting names like the “Working Family Tax Cuts” act to improve its image. As Enten summed up, “I have not seen a single reputable poll in which this thing is anything more popular than being 10 points underwater. Truthfully, JD Vance, good luck to you, buddy.”

As the nation heads toward the 2026 midterms, the “One Big Beautiful Bill” stands as a testament to the deep divides in American politics—promising relief and reform to some, while raising fears of hardship and instability for others. The coming months will reveal whether its legacy is one of renewal or regret.