Group 1 - The "Big and Beautiful" tax and spending bill was signed into law by President Trump on July 4, which has been controversial due to cuts in federal aid, increased long-term debt, and tax reductions for the wealthy and large corporations [1][2] - The bill passed the House of Representatives with a narrow margin of 218 votes in favor and 214 against, with all Democratic members opposing it and two Republican members joining the opposition [1][2] - The core of the bill is to extend the $4.5 trillion tax cut policy enacted during Trump's first term and includes $350 billion in investments for national security and immigration enforcement [2] Group 2 - The bill allocates over $8.6 billion to enhance the U.S. Coast Guard's icebreaker fleet in the Arctic to strengthen U.S. dominance in the region [2] - To offset tax revenue losses, the bill proposes cuts to $1.2 trillion in Medicaid and food stamp programs and significantly eliminates green energy tax credits [2] - According to the Congressional Budget Office, the U.S. debt is projected to increase by approximately $3 trillion over the next decade, resulting in 11.8 million people losing health insurance [2]

Core Points - The "One Big Beautiful Bill Act" is a significant budget plan that has caused a deep divide between the two major political parties in the U.S. and even within the Republican Party itself [1][6][21] Tax Policy - The act includes tax cuts for all income groups, with wealthier individuals benefiting the most. It permanently extends the tax cuts from the 2017 tax reform, reducing corporate tax rates from 35% to 21% and personal income tax rates up to 37% [2][3] - New tax exemptions include tips and overtime pay for service industry workers, benefiting millions of low-income earners. However, it imposes additional taxes on countries with "unfair foreign taxes," potentially leading to trade conflicts [2][3] Social Welfare Cuts - To offset the revenue loss from tax cuts, the act proposes cuts to social welfare programs, including Medicaid and food assistance programs [3][4][5] - Medicaid will see stricter work requirements, potentially resulting in 2 million low-income individuals losing their health insurance. Additionally, funding for rural hospitals will be reduced by over 20%, risking closures [4] - The age limit for food assistance (SNAP) eligibility will be raised from 54 to 64, cutting $230 billion in funding and affecting 2.3 million elderly individuals [5] Debt and Fiscal Adjustments - The act necessitates an increase in the federal debt ceiling by $5 trillion, with a projected deficit increase of $3.3 trillion over the next decade [8] - Spending adjustments include a $1.2 trillion reduction in healthcare, welfare, and clean energy subsidies, while increasing defense spending by $150 billion and border security by $465 billion [8] Energy and Industrial Policy - The act terminates clean energy subsidies, including tax credits for electric vehicles and renewable energy projects, while supporting traditional energy sources [8] - It includes provisions that prevent projects involving "foreign adversaries" from receiving tax credits, compelling U.S. companies to sever ties with Chinese supply chains [8] Political Dynamics - The act has led to significant political conflict, with Democrats opposing it vehemently, while some Republicans also express concerns over its implications [21][24] - The passage of the act was contentious, with a narrow margin in both the House and Senate, highlighting the deep divisions within Congress [18][20] Conclusion - The act represents a critical moment in U.S. fiscal policy, with potential long-term implications for social welfare, taxation, and political dynamics, as it awaits the President's signature [16][17]