US: Trump’s tax bill sparks economic concerns

The U.S. House of Representatives has narrowly passed a sweeping tax and spending bill, dubbed the “One Big Beautiful Bill,” championed by President Donald Trump. The legislation aims to extend the 2017 tax cuts and implement significant changes to federal spending, including the rollback of clean energy incentives established under the Inflation Reduction Act (IRA) of 2022.

According to experts, the bill’s provisions could have far-reaching economic and environmental consequences. The elimination of tax credits for renewable energy sources and electric vehicles, along with cuts to clean energy manufacturing incentives and home efficiency subsidies, is projected to result in the loss of over 830,000 jobs by 2030.Additionally, American households may see an average increase of $230 in annual energy bills by 2035. The environmental impact is also significant, with an estimated additional 260 million tonnes of carbon emissions annually by 2035. 

Critics argue that the bill undermines efforts to combat climate change and disproportionately benefits the wealthy through tax cuts. Organized labor and climate advocacy groups have voiced strong opposition, emphasizing the potential loss of blue-collar, middle-class jobs. The legislation also aligns with broader initiatives from the Trump administration to roll back environmental regulations and promote fossil fuel extraction, which could cumulatively add up to 730 million tonnes of extra emissions over a decade. 

The bill’s passage in the House was achieved with a narrow 215-214 vote, reflecting divisions within the Republican Party. Some fiscal conservatives expressed concerns over the bill’s impact on the national debt, while moderates were wary of cuts to social programs. The legislation now moves to the Senate for consideration, where its future remains uncertain.

As the debate continues, the potential economic and environmental ramifications of the bill are likely to remain at the forefront of public discourse. Stakeholders across various sectors are closely monitoring developments, anticipating the broader implications for the U.S. economy and climate policy.