The One Big, Beautiful Bill
The One, Big Beautiful Bill (OBBB) barely passed the House recently, and it was sent to the Senate. The Senate in turn passed a version making some major changes to reduce spending.
It’s categorized now as a reconciliation bill, meaning reps from both chambers are meeting to attempt to work out and ‘reconcile’ differences.
The major concern of some GOP senators was that the bill did not reduce spending enough to avoid budget deficits and add to the national debt.
That was after the House reduced the spending of the initial bill following concerns expressed by Elon Musk.
The major elements of the 1,000+ page bill are as follows:
- It extends the provisions of 2017 Tax Cuts and Jobs Act set to expire at the end of this year.
- The healthcare portion adds work requirements for able bodied individuals to qualify for Medicaid and makes it more difficult for illegal aliens to use Medicaid.
- The education portion of the bill increases eligibility requirements for Pell Grants.
- The defense portion of the bill would allocate an additional $150 billion in defense spending, primarily focused on drones.
- The border security portion of the bill allocates $70 billion for border security, including $46.5 billion for barriers on the border.
- The welfare portion of the bill sees Supplemental Nutrition Assistance Program (SNAP) cuts and puts 5% of the benefit costs and 75% of the administration costs onto the states.
- The tax portion of the bill would increase the child tax credit to $2,500 through 2028 and $2,000 after that, add a new tax deduction for tips and overtime, raise the state and local tax deduction (SALT) cap to $30,000 from $10,000, create a “money accounts for growth and investment” savings account for parents which would give $1,000 per child, create a 5% tax on remittances.
- It also reduces the tax credits currently given to EV purchasers, and sunsets grants under Biden’s Inflation Reduction Act.
- It increases the debt ceiling by $4T to avoid the seemingly constant consideration and vote.
Estimates are the bill would add between $1.5T – $5T to the debt over the next ten years. The large spread between estimates is primarily around opposing theories of what the tax cuts will do to revenue collections. (See “Laffer’s Curve” published June 1, 2025)
The OBBB raises concerns to this writer.
First, I’m opposed to these “omnibus” all-encompassing bills. They address all kinds of different matters, making it easier for politicians to oppose an entire bill while taking issue with just one provision.
There’s no reason that each of the areas outlined in the bullets above couldn’t be a separate bill allowing full debate on the subject and showing the true colors of the votes by reps in the House and Senate.
Second, the OBBB fails to adequately address the spending problem of federal operations. Among other things it fails to employ a significant reduction in the bloated federal workforce coupled with up-to-date applications and use of technology. This administration wants citizens to ‘bite the bullet’ during the time it takes to fix the trade deficit but continues to provide benefits to people who, unlike taxpayers, don’t get off their butts and get a job. We are not born with the federal government owing us food, shelter or health care, just basic human rights and opportunity. Entitlements are a drag on everyone and everything. Let’s go back to hard work and private charity and get the government out of the ‘charitable’ business.
Third, it fails to provide a plan to reduce the debt. The country is paying over $1T to service the current $36T debt – and it’s not getting better – only worse. It’s past time we find it only acceptable to support a plan to start actual payment on the principal – and not saddle future generations with calamity.
Fourth, it fails to address the elephants in the room – namely Social Security and Medicare. It’s common knowledge that both programs will exhaust their respective trusts within 10 years and begin requirements to be paid with general funds – which would lead to bankruptcy. People are working and living longer, so the age for eligibility must be raised for Social Security, and Medicare payments (and healthcare costs) reduced.
Ignoring reality will result in rude, no-way out awakenings for future citizens and taxpayers.
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Have a great and prosperous week.
Hug somebody.
References:
https://en.wikipedia.org/wiki/One_Big_Beautiful_Bill_Act
