How the $3.4 Trillion ‘One Big Beautiful Bill’ Could Impact Taxes, Stocks, and the Economy?|Stock Market News

How the $3.4 Trillion ‘One Big Beautiful Bill’ Could Impact Taxes, Stocks, and the Economy?|Stock Market News

On July 3, 2025, Congress passed a massive new bill known as the “One Big Beautiful Bill.” With a total price tag of $3.4 trillion, this legislation brings some major changes to taxes, government spending, and even the stock market. Let’s break down what this means for everyday people, investors, and the country’s financial future.

One of the biggest parts of the bill is the extension of Trump-era tax cuts. This means that workers will continue to enjoy lower taxes, and there are new deductions included too. If you earn money from tips, you can now deduct up to $25,000. If you work overtime, there’s a deduction of up to $12,500 available. These tax breaks could put more money back into the pockets of working Americans, helping increase consumer spending.

Another major feature of the bill is a big boost in military spending, which is often seen as a way to create jobs and strengthen the economy. The bill also sets aside $46.5 billion for border wall construction and immigration enforcement. These kinds of large government investments often benefit certain industries- especially defense companies like Lockheed Martin - and can encourage investors to put more money into the stock market. As a result, we could see indices like the S&P 500 go up if corporate profits grow.

However, it’s not all good news. Critics are warning that this bill could add $2.4 trillion to the national debt over the next ten years. To help pay for the new spending, the bill includes cuts to programs like Medicaid and SNAP (food stamps). This could hurt low-income families who rely on these services, and also affect companies that depend on low-income consumers to buy their products.

From an investment point of view, this could bring mixed results. Stocks in the defense and retail sectors might see gains due to increased spending and tax cuts. On the other hand, healthcare companies like UnitedHealth, which are closely tied to Medicaid, could see their stock prices fall. Plus, rising debt may cause bond yields to increase, which can make stocks less attractive to investors in the long run.

So far, investors are divided. Some are excited about the short-term economic boost, while others are worried about what all this borrowing means for the future. If deficits continue to grow, it could lead to higher inflation, increased interest rates, and more market volatility.

The “One Big Beautiful Bill” is a bold move that could bring both opportunities and risks. While it may bring short-term benefits to workers and investors, it also raises important questions about long-term stability and the financial health of the nation.

Disclaimer:-

No advice or suggestions were given. updates only for educational reasons. Before making any decisions, speak with your financial advisor. Members and administrators are not responsible for financial losses. posts a warning about changes in the market.