The US Senator is discussing President Donald Trump’s “one big beautiful bill.” This promises a massive tax credit as Republicans hope to pass it before Friday’s Independence Day holiday.
On Saturday, the Senate voted 51-49 to begin debate on the latest 940-page bill despite two Republican senators joining Democrats and opposed the allegations. Trump Republicans hold 53 seats in the Senate, while Democrats hold 47 seats.
If the Senate passes the bill, what will it be next?
On May 22, the Republican-controlled House passed the previous version of the bill with 215-214 votes.
The bill has been revised by the Senate, and both chambers of Congress must pass the same law for it to become law. If the Senate passes that version, members of both rooms work to draft a compromise that the House and Senate must vote again. Republicans hold 220 seats, while Democrats hold 212 people in their homes.
If a compromise bill is passed, it goes to Trump, where it is expected to sign it into law.
So, if a bill opposed by Democrats and some conservatives becomes law, who will become part of the winners and losers?
Who will benefit from the bill?
The groups that benefit are:
High-income households
The bill would extend the tax cuts Trump introduced during his first term. Trump pitched this as the benefit of the American people, but some benefit more than others.
More than a third of the total cuts go to households with annual income of $460,000 or more. Approximately 57% of the tax cuts go to households with annual incomes of $217,000 or more.
According to an analysis by the Center for Non-Parent Tax Policy, the Senate bill cuts an average of around $2,600 per household in 2026. “High-income households benefit from a much more generous tax system.”
Family with children
If the bill is not passed, the current child tax credit of $2,000 per child per year will be reduced to $1,000 in 2026.
However, if the current version of the Senate bill passes, the child tax credit will permanently increase to $2,200. That’s a slight increase from the $2,500 version of the bill approved by the House.
Traditional car manufacturers
The Senate version is about to close tax credits for electric vehicles (EVs) worth up to $7,500 starting September 30, so traditional gasoline-driven car manufacturers could benefit from the bill.
This could reduce consumer demand for EVs and level the arena for gasoline and diesel-powered cars.
Workers receiving tips
If the bill passes, no hints will be taxed.
Currently, workers (whether they’re waiters or other service providers) need to report to their employers all tips over $20 a month, and those additional revenues will be taxed.
This bill would end it.
Who will lose because of the bill?
Some of the non-profitable groups are:
Food Stamp Recipients
The Senate version of the bill proposes reducing the Food Stamp Program (SNAP), known as the Supplementary Nutrition Assistance Program (SNAP), over a decade, according to an analysis by the Nonpartisan Congressional Budget Office (CBO).
Food stamps help low-income families buy food. According to the US Department of Agriculture, 42.1 million people benefited from the program per month in the 2023 fiscal year.
Medicaid beneficiaries
The Senate version of the bill proposes a federal fund cut that would cut $9300 billion to Medicaid, the largest US program to provide health care to low-income people. These are reducing budget spending by 2034.
The bill states that from 2026 healthy adults under the age of 65 will need to work 80 hours a month to continue receiving Medicaid, except for dependent children.
As of March, more than 71 million low-income Americans had been registered with Medicaid for health insurance.
EV maker
The EV tax credit will end on September 30th if the Senate version of the bill passes. The House version aims to eliminate the tax credit by the end of 2025.
Elon Musk, the billionaire who owns EV maker Tesla, has expressed his opposition to the bill online. “I’m sorry, but I can’t stand it anymore. This massive, outrageous, pork-filled Congressional spending bill is a disgusting hatred,” Musk wrote on X on June 3rd.
He doubled his criticism on Saturday before deliberations over the Senate bill.
“The latest Senate bill will destroy millions of jobs in America and cause great strategic harm to our country,” Musk wrote on X, the platform he owns.
The latest Senate bill will destroy millions of jobs in America and cause great strategic harm to our country!
It’s totally insane and destructive. It is severely damaging future industries while providing handouts to past industries. https://t.co/tz9w1g7zhf
– Elon Musk (@elonmusk) June 28, 2025
Fiscal conservatives
Some conservatives have criticised the bill and say it will inflate the country’s huge debts.
The CBO estimated that the Senate version would increase its national debt by $3.3 trillion between 2025 and 2034. The CBO estimated that its debt had increased by $2.4 trillion over the course of 10 years.
Currently, US debt exceeds $36 trillion, accounting for 122% of the country’s gross domestic product (GDP).
