In July 4 ceremony, Trump signs tax and spending bill into law
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News18
18 minutes ago
- News18
Trump Signs ‘One Big Beautiful Bill Act': What It Means For Indians And High-Income Americans
Last Updated: The bill, passed by both chambers of Congress, includes several measures that will impact Indian families and workers abroad US President Donald Trump signed into law the 'One Big Beautiful Bill Act" on Friday during a Fourth of July picnic at the White House, bringing sweeping changes to taxes, remittances, and federal spending. The bill, passed by both chambers of Congress, includes several measures that will impact Indian families and workers abroad, as well as raise fresh questions about tax breaks for high-income Americans. 'This is the most patriotic bill ever passed," Trump said during the signing. 'We are putting American families, American jobs, and American values first." Impact On Indians: Remittance Tax One of the bill's key provisions is a 1 per cent levy on international money transfers made by non-US citizens, including green card holders and workers on temporary visas. The tax applies to remittances sent using cash, money orders, or cashier's cheques. India, the world's largest remittance recipient, could be significantly affected. According to the Reserve Bank of India, Indian nationals received $32.9 billion in remittances from the US in 2023-24, accounting for nearly 28 per cent of total inflows. The new levy, even at a reduced rate of 1 per cent — down from an earlier proposed 5 per cent— may strain households in states like Kerala, Uttar Pradesh, and Bihar, where remittances support education, healthcare, and housing. Tax Cuts For The Wealthy The law allows up to $10,000 in interest deductions on loans for buying new American-made vehicles. However, federal tax credits for electric vehicles — which offered up to $7,500 in incentives — will now end in September, four years ahead of schedule. Meanwhile, clean energy tax credits from the Biden era will be phased out entirely by 2028. Defence And Immigration Spending The bill also boosts military and immigration enforcement budgets, with $150 billion allocated for shipbuilding and missile defence, including Trump's 'Golden Dome" project. Another $100 billion has been directed to US Immigration and Customs Enforcement (ICE) to ramp up immigration crackdowns. One campaign promise that did make it through — a tax exemption on service industry tips — was included in the final law. The Congressional Budget Office estimates that the new law will add $3.3 trillion to the federal deficit over the next decade. Notably, for many Indian families reliant on US remittances, even a modest 1 per cent tax could add up. At the same time, the law renews Trump-era tax cuts for the rich, intensifying debates over fiscal priorities and economic equity. Get breaking news, in-depth analysis, and expert perspectives on everything from geopolitics to diplomacy and global trends. Stay informed with the latest world news only on News18. Download the News18 App to stay updated! First Published: July 06, 2025, 13:29 IST
Indian Express
38 minutes ago
- Indian Express
Can Elon Musk's America Party go beyond social media to be a political force? Explained, in 3 points
Elon Musk, the world's richest man, has announced a new political party to 'give Americans back their freedom'. Musk had earlier run a poll on X, the social media platform he owns, asking people if the US should get a new political party. Early on Sunday morning India time, he posted on X, 'By a factor of 2 to 1, you want a new political party and you shall have it! When it comes to bankrupting our country with waste & graft, we live in a one-party system, not a democracy. Today, the America Party is formed to give you back your freedom.' Musk's dramatic breach with Donald Trump, whom he helped get elected as the US President, came over the One Big Beautiful Bill Act. What exactly is Musk's problem with Trump's flagship legislation, and how soon can his political party take off? We explain, in 3 points. The One Big Beautiful Bill basically covers many of Trump's campaign promises in one big legislation. While you can read a detailed explainer on the Bill here, briefly, it announces tax cuts on the one hand, and promises to spend a lot more on border security, defence, and deporting illegal immigrants on the other. To compensate for loss of income from the tax cuts and the increased spending, it cuts back some welfare measures and subsidies. It also raises the debt ceiling, which is the amount the US government is allowed to borrow. Musk's problems seem to be about this increased debt ceiling, which he says is financially irresponsible, and with the cutting of subsidies to certain sectors such as green energy, which will directly impact his electric car business Tesla. 'The latest Senate draft bill will destroy millions of jobs in America and cause immense strategic harm to our country,' Musk posted on X recently. 'It gives handouts to industries of the past while severely damaging industries of the future,' he added, in what is apparently a reference to the Bill not giving much support to environment-friendly technologies like electric vehicles. On a different occasion, asked on X why he stopped supporting Trump, Musk had said, 'Increasing the deficit from an already insane $2T under Biden to $2.5T. This will bankrupt the country.' Apart from its name, not much. Musk has been saying that the US two-party system is essentially a 'uniparty', with similar financial policies that don't represent 'the 80% in the middle', but hasn't explained how his party intends to do that, or what its ideology or vision is. On Sunday morning, he reposted an X a comment from another user, which said, 'Is this the America Party platform? -reduce debt, responsible spending only; -modernize military with ai/robotics; -pro tech, accelerate to win in ai; -less regulation across board but especially in energy; -free speech ; -pro natalist; -centrist policies everywhere else.' Musk has gone from being a Democrat supporter to Trump's biggest backer to now founder of a new party, so his own political views are difficult to pin down. But he has spoken about the need for Americans to have more children, and for the government to not interfere too much in how industries grow. How soon can the America Party be an actual contender in elections? Musk's plans are ambitious. When a user on X asked if he plans to start competing in the 2028 Presidential elections or the midterm elections next year, he said 'next year'. About his battle plans, he has said, on different occasions, 'The way we're going to crack the uniparty system is by using a variant of how Epaminondas shattered the myth of Spartan invincibility at Leuctra: Extremely concentrated force at a precise location on the battlefield'; and 'One way to execute on this would be to laser-focus on just 2 or 3 Senate seats and 8 to 10 House districts. Given the razor-thin legislative margins, that would be enough to serve as the deciding vote on contentious laws, ensuring that they serve the true will of the people.' Epaminondas was a Greek general who defeated the superior Spartan army through two innovative tactics. The Spartan Army's elite unit would stand on the right flank of its battle formation. Epaminondas went with an asymmetrical military formation, packing all his best warriors on the left side, and making those columns of soldiers deeper than usual. On the right side, he kept his weaker troops, but at an angle, so that they did not meet the Spartans first. Thus, his left wing's concentrated might smashed through the Spartans, defeating them before they could understand what was happening. Musk seems to be saying that his party's candidates will strategically fight from the constituencies that promise the best returns, and win just enough seats to hold up Bills they oppose. Although Musk's enormous wealth makes a lot of things possible, all of this is easier said than done. America's political structure favours the two-party system and it is difficult for newcomers to break through. Many, like the Green Party, the Libertarian Party, etc., have tried. To fight the national-level elections, a new party has to register with the Federal Election Commission, only after which it can spend money above a certain limit on election activities. Musk's party is yet to register. Also, states have their own rules, and for a party's presidential candidate to appear on the ballot in all 50 states, it must meet the requirements of each state individually. All of this requires grassroot presence and patience. Whatever Musk's personal appeal — and wealth — creating a party organisation of this magnitude is not easy. Also, Musk was born in South Africa, so he can't run for President. The billionaire will not only have to create a party, but also a Presidential candidate of sufficient stature, before his wealth can bankroll that candidate's campaign.
Scroll.in
2 hours ago
- Scroll.in
Elon Musk launches American Party after fallout with Donald Trump
Billionaire businessman Elon Musk on Saturday announced that he had launched a new political party, named the America Party. The announcement came two days after the US Congress passed Trump's $4.5 trillion package of tax cuts and spending reductions, officially titled the ' One, Big, Beautiful Bill '. The bill ends federal subsidies for clean energy and electric vehicles to fund increases in military and border security spending. This move was reportedly one of the reasons for the falling-out between Trump and Musk, his former supporter. On Saturday, Musk described the American Party as an alternative to the US' two-party system, criticising both Democrats and Republicans for contributing to national debt through wasteful spending and corruption. It remains unclear if the American Party has been registered with the country's Election Commission yet, BBC reported. New political parties are not required to officially register with the Federal Election Commission unless they raise or spend money 'over certain thresholds in connection with a federal election'. Notably, Musk is not eligible to run in the US presidential elections as he was born outside the country. He is yet to announce who will lead the new party, BBC reported. On Friday, the US Independence Day, he conducted an online poll, asking if Americans wanted 'independence from the two-party (some would say uniparty) system'. The poll received more than 1.2 million responses. 'By a factor of 2 to 1, you want a new political party and you shall have it,' Musk said in a social media post. By a factor of 2 to 1, you want a new political party and you shall have it! When it comes to bankrupting our country with waste & graft, we live in a one-party system, not a democracy. Today, the America Party is formed to give you back your freedom. — Elon Musk (@elonmusk) July 5, 2025 Musk had been a key Trump supporter since late 2024 and had appeared at several rallies in the run-up to the presidential elections. He contributed nearly $250 million to Trump's re-election campaign, becoming his largest individual donor. On January 20, the day Trump took office for his second term, he created the Department of Government Efficiency through an executive order and assigned Musk in charge of it. The businessman resigned from the administration on May 29, criticising Trump's 'One, Big, Beautiful Bill'. The legislation entails tax cuts of about $4.5 trillion that Trump had enacted during his first term, and additional tax breaks. However, the reduction in tax revenue is to be offset by cutbacks in social safety net programmes, such as the Medicaid health insurance programme and food stamps. The bill also includes an investment of about $350 billion in national security and the deportation of undocumented migrants. Musk was reportedly upset that the bill lacked support for clean energy and did not include subsidies for electric vehicles, such as those made by his company Tesla. On July 1, Trump accused the businessman of being overly dependent on government aid and threatened that he would cut subsidies that Musk's companies received. 'Without subsidies, Elon would probably have to close up shop and head back home to South Africa.' Trump also threatened to have the Department of Government Efficiency investigate subsidies benefiting Musk's companies, including Tesla, rocket company SpaceX and satellite provider Starlink.
