Legislative Progress - The "Beautiful Act" has passed the Senate with a narrow margin of 51 to 50, entering the final legislative phase [1][13] - The bill will undergo review in the House of Representatives, with potential for further amendments [1][13] - Three possible timelines for final passage: before July 4, mid-July, or late July to August [2][13] Content Adjustments - The Senate version increases the deficit by approximately $4.1 trillion over the next decade, $550 billion more than the House version [2][14] - Corporate tax cuts are expanded while personal tax cuts are reduced, favoring high-income earners [2][14] - Significant cuts to healthcare and welfare spending, with medical assistance cuts increasing from $800 billion to $930 billion [3][14] Economic Impact - The "Beautiful Act" is expected to moderately boost the U.S. economy, potentially increasing annual GDP growth by 0.2 percentage points from 2025 to 2027 [4][15] - The lowest 20% of income households may see a 2.9% decrease in income, while the highest 20% could experience a 1.9% increase [5][15] - Capital-intensive industries (manufacturing, data centers) are likely to benefit, while the renewable energy sector may face challenges due to reduced tax incentives [5][15]

Legislative Progress - The "Beautiful Act" was passed in the Senate with a narrow vote of 51 to 50, with Vice President Vance casting the deciding vote[2] - The bill now moves to the House for further review, with potential modifications before final approval[3] Fiscal Impact - The Senate version of the bill is projected to increase the deficit by approximately $4.1 trillion over the next decade, an increase of about $558 billion compared to the House version[4] - The debt ceiling is raised from $4 trillion to $5 trillion under the Senate version[4] Tax Adjustments - The Senate version increases corporate tax cuts while reducing personal tax cuts, favoring high-income earners[4] - Medical assistance cuts are expanded from $800 billion to $930 billion, potentially affecting 10.3 million low-income individuals[4] Economic Effects - The bill is expected to moderately boost the U.S. economy, increasing average annual real GDP growth by 0.2 percentage points from 2025 to 2027, with a maximum effect of 0.6% in 2026-2027[6] - The lowest 20% of income households may see a decrease in income by 2.9%, approximately $700, due to cuts in medical assistance and SNAP benefits[6] Sectoral Impacts - Capital-intensive industries, such as manufacturing and defense, are likely to benefit from the bill, while the renewable energy sector may face challenges due to reduced tax credits[6] - Defense spending is set to increase by $150 billion to $1 trillion in 2026, focusing on naval construction and missile defense systems[5]