Kathmandu. President Donald Trump’s budget ‘mega bill’ has overcome a big obstacle. It is one step closer to becoming a law.
Known as the ‘One Big Beautiful’ Bill Act, the bill was passed by the Senate by the vice president’s decisive vote on Tuesday and will be considered in the House of Representatives on Wednesday. The bill will make the major tax cuts that President Trump temporarily implemented when he first took office permanently.
The bill will also increase spending on border security, defence and energy production. It is planned to spend on various programs to compensate for the loss of revenue.
This includes food subsidies and health insurance coverage for low-income Americans.
Social Security tax
During the election campaign, Trump promised to end taxes on Social Security income. This is a monthly payment for retired-age Americans and people with disabilities. Trump has reduced the standard cut for people over the age of 65 to $4,000. This reduction will be applicable from 2025 to 2028.
Medicaid: health insurance coverage
Under this, those who do not have children or disabilities will now have to work for at least 80 hours every month. In addition, enrollment for Medicaid must be done every six months by verifying your income and residence. The need for work in Medicaid has been described as one of the toughest measures. As a result, a large number of Americans may be deprived of health insurance coverage.
Tax deduction limit
Currently, the federal tax cut limit is $10,000. The bill raises it to $40,000, but five years later it will again be $10,000.
food assistance
More than 400 million low-income Americans use supplemental nutrition assistance programs. The federal government will give full funds to these states. Whose payment discrepancy is less than 5 percent. However, states with high discrepancies will have to pay 5 to 15 percent for this program. This change will come into effect from 2028. This includes people who have no family.
Overtime and tips not taxed
As promised, Trump has made no provision for tips and taxes overtime. The limit for single individuals is $150,000 and the combined limit is $300,000.
Clean energy tax deduction
The bill proposes a clean energy tax exemption. Under this, companies starting construction this year can be eligible for 100 percent tax exemption. If they start construction in 2026, this discount is 60 percent and if they start construction in 2027, then this discount is 20 percent. This discount will expire in 2028. – Agency
