Winners and Losers as Trump’s ‘Big, Beautiful’ Bill Clears Congress

 Winners and Losers as Trump’s ‘Big, Beautiful’ Bill Clears Congress

Former President Donald Trump is celebrating what he calls one of the most impactful laws in American history — a sweeping tax and spending bill that just passed Congress and is now headed to his desk for final approval. Dubbed the “Big, Beautiful Bill,” this legislation cements several key parts of Trump’s 2017 tax cuts, brings back a number of business-friendly tax breaks, reduces funding for social safety net programs, and pulls back on green energy support.

While Trump and his allies are touting the bill as a major economic win, its effects will vary widely depending on who you are. Some sectors and income groups are set to benefit significantly, while others could face serious setbacks.

Who Comes Out Ahead?

Big Business and Corporations
Major business lobbies like the U.S. Chamber of Commerce and the Business Roundtable have thrown their weight behind the bill. It permanently locks in key parts of the 2017 Tax Cuts and Jobs Act and allows businesses to once again deduct the full cost of equipment purchases right away — a benefit that was being phased out over the last few years. Companies can also immediately deduct research and development expenses again, reversing a rule from 2022 that required them to spread out those costs over five years.

Manufacturers
Manufacturing companies are big winners too. They’ll benefit from new rules that allow full, upfront tax deductions for building new factories. These deductions are retroactive to January 19, 2025, and will remain in place through 2028. The bill also boosts tax credits for chipmakers setting up semiconductor plants in the U.S., part of a broader push to strengthen domestic production.

Small Businesses and Partnerships
Owners of certain types of pass-through businesses — such as law firms, medical practices, and private investment partnerships — will continue to enjoy a key tax break that lets them deduct a chunk of their income on their personal tax returns. The House wanted to increase this deduction to 23%, but the final version of the bill keeps it at the current 20%.

High-Income Earners
Wealthy Americans also stand to gain. According to an analysis from CNN using the Penn Wharton Budget Model, the top 20% of earners could see their after-tax income rise by nearly $13,000 per year. For the top 0.1%, the annual benefit could exceed $290,000. Additionally, the bill temporarily raises the cap on state and local tax (SALT) deductions to $40,000 for households earning under $500,000 — offering relief to high-income residents in states with steep taxes.

A new rule also blocks millionaires from receiving unemployment benefits — a symbolic move, but one that underscores the bill’s focus on reducing support programs.

Tipped Workers and Overtime Earners
There’s also a nod to certain working-class Americans. Employees in tipped jobs will be able to deduct up to $25,000 in tips from their taxable income through 2028. Overtime workers can deduct up to $12,500 in extra wages — though both deductions come with income restrictions.

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The bill reflects the priorities of Trump-era economic policy: lower taxes for businesses and high earners, incentives for domestic manufacturing, and a significant scaling back of federal aid programs. While it brings real financial relief to some, critics warn it may widen the gap between the haves and have-nots — setting the stage for a sharp debate as the 2025 elections approach.