Trump's Bill Threatens US Economic Crisis: Potential $3.8 Trillion Debt Increase, 830,000 Job Losses, and Clean Energy Subsidy Elimination.
America: Former US President Donald Trump recently introduced a new bill titled 'One Big, Beautiful Bill Act,' sparking intense political and economic debate. While Trump's supporters hail it as a significant step towards reform, experts and reports warn of potential threats to the US economy, environment, and millions of jobs.
What is the ‘One Big, Beautiful Bill Act’?
This bill attempts to make the tax cuts implemented by the Trump administration in 2017 permanent. It encompasses tax policies, spending, border security, and energy subsidies, seen as a major step towards fulfilling Trump's campaign promises.
However, it's criticized for benefiting the wealthy and large corporations while burdening average American citizens.
5% Tax on Remittances
A major point of contention is the proposed remittance tax. The bill imposes a 5% additional tax on money sent home by US residents to other countries.
This disproportionately affects immigrant workers already struggling with rising costs of living, and is deemed unfair and anti-immigrant.
Potential Loss of 830,000 Jobs
A Guardian report suggests the bill could eliminate over 830,000 jobs in the US. The primary cause is the removal of subsidies from the clean energy sector.
Trump's bill would eliminate financial assistance provided by the Biden administration to promote renewable energy, including solar, wind, and electric vehicles.
This would increase the cost of solar panels, wind turbines, and electric cars, harming companies and leading to job cuts.
Increased Household Bills
If passed, the bill could increase average US household electricity bills by $230 annually by 2035.
Furthermore, it proposes reducing royalties for petroleum companies, potentially destabilizing oil and gas prices and exacerbating environmental impact.
Major Setback for Climate Change Efforts
The bill weakens climate change legislation enacted by the Biden administration. According to the Trump administration's plan:
- Tax credits for electric vehicles will be eliminated.
- Incentives for wind and solar energy projects will be gradually phased out.
- Almost all benefits for the clean energy sector will be eliminated by 2032.
This would severely hinder US green energy policies, increasing greenhouse gas emissions and worsening the climate crisis.
Reversal of Biden's Policies
Trump's proposal aims to reverse Biden administration policies focused on creating a green and clean America.
Biden aimed for two-thirds of new cars in the US to be electric by 2032, a goal this bill would effectively nullify.
Potential $3.8 Trillion Debt Increase
Some reports claim the bill could increase US debt by $3.8 trillion.
While tax cuts and subsidy eliminations might benefit the wealthy, they would drastically reduce government revenue, leading to a soaring budget deficit and national debt.
Negative Impact on US GDP
According to the Economic Times, the bill could reduce US GDP by over $1 trillion in the next 10 years.
This is due to decreased investment in the energy sector, job losses, and reduced consumer spending power.
Direct Impact on the Poor and Middle Class
This bill could severely harm middle-class and lower-income families:
- Increased electricity bills
- Higher transportation costs
- Reduced job opportunities
- Direct impact of the climate crisis on vulnerable populations
