The U.S. Senate passed the One Big Beautiful Bill Act (OBBBA) with a 51-49 vote, causing public disputes and receiving backing from some banks.
Description of the Bill
The bill was passed on Saturday and features sweeping tax reforms and targeted incentives. However, critics argue that it could increase the federal deficit by $3 trillion over the next decade.
Support and Criticism
The American Bankers Association expressed strong support for the bill in a letter, describing it as 'much-needed tax relief.' Nomura’s economist David Seif stated that the bill would likely benefit the U.S. economy in the short term.
Morgan Stanley noted that the tax cuts could help industries such as communications, manufacturing, and energy grow, but also expressed concerns about long-term risks.
Long-term Risks
Critics like Erica York from the Tax Foundation called the bill 'fiscally irresponsible.' She pointed out that the complex tax cuts favor some workers while excluding others and could place an additional burden on the IRS.
Debate continues around the bill as it moves toward the president's desk, leaving open questions about its economic impact and sustainability.
