Introduction

Trump's "Big and Beautiful" bill has finally passed. Although the advantage was very small, Trump still managed to sign it as he wished.

However, every coin has two sides. Trump's former "campaign ally" Musk has now fulfilled his promise and truly established the "American Party." At the same time, Biden also made another statement, adding many uncertainties to this "Trump-Musk split."

What does the passage of this "Big and Beautiful" bill mean for the United States?

The "Big and Beautiful" Bill Successfully Implemented

At 3:00 a.m. on July 3, 2025, the U.S. House of Representatives passed Trump's "Big and Beautiful" bill by a narrow margin of 218 votes to 214 votes. The next day, Trump signed the bill on "Independence Day" as part of the "celebration activities."

This victory was called "a historic moment" by Trump, who loudly claimed on social media that the U.S. economy would soon experience an unprecedented boom.

Like Biden's "Inflation Reduction Act," this nearly 900-page bill will accompany Trump's remaining three and a half years in office, serving as the "main melody" of the Trump administration. However, this bill is far from a simple economic stimulus plan; it is a "fiscal bomb" capable of reshaping the structure of American society.

The core content of the "Big and Beautiful" bill can be summarized as "three reductions and one increase." Reduce taxes, reduce welfare, reduce regulations, and increase military spending.

Over the next few years, the United States will cut 4 trillion dollars in taxes, with the corporate income tax permanently locked at 21%, and the inheritance tax and gift tax for the wealthy will be further relaxed. 37 million service industry workers will benefit from the policy of tax exemption on tips and overtime pay.

Trump obviously did this to consolidate the blue-collar vote bank. However, as Democrats put it, this is a "rob the poor to help the rich" bill. Because the U.S. national debt has reached 36 trillion, equivalent to almost 100 times Elon Musk's net worth. And Musk himself recently spent over three months cutting costs for Trump, only managing to cut nearly 1 trillion dollars, which is less than 3% of the U.S. debt.

And Trump's stroke of the pen spent over 4 billion dollars. Of course, this money didn't appear out of nowhere, but would be distributed among every American poor person, or every ordinary American citizen.

"Big and Beautiful" not only reduced taxes for businesses and middle-income groups, but also cut a lot of social welfare for ordinary people.

For example, Americans over 54 years old can receive free food from relevant agencies each month, but from now on, this age limit will be changed to 64 years old, resulting in an average additional cost of 150 dollars per household per month for food expenses.

More ironically, these saved funds were not entirely used to repay the debt, but were poured into the defense budget. In the 2026 fiscal year, the U.S. military spending surged by 13%, breaking through the 1 trillion dollar threshold for the first time, and projects such as sixth-generation fighters and hypersonic missiles have all created folders waiting for construction.

Rating agencies had already downgraded the U.S. credit rating due to debt issues in May, and now Wall Street is on high alert, with the dollar-to-euro exchange rate falling to its lowest level since September 2021.

But Trump was indifferent to this. At the signing ceremony, he boasted, "Debt is just a numbers game. We need to make America great again!"

Musk's Protest and Democratic Opposition

Just as Trump hadn't finished his champagne celebrating his victory, Musk dropped a bombshell on social media, announcing the official establishment of the "American Party," vowing to break the political monopoly of the Democratic and Republican parties for 170 years.

This billionaire's anger was not unfounded. The provision in the "Big and Beautiful" bill that removed the 7,500-dollar tax credit for electric vehicles directly hit Tesla's interests.

Musk posted dozens of tweets denouncing it, calling it a trade-off of the future of the United States for the sunset industry, even creating posters that paired the faces of lawmakers supporting the bill with the word "liar," threatening to expose them in the upcoming midterm elections.

It must be said that this billionaire's verbal battle is quite dramatic. Just two months ago, Trump had gifted Musk a golden key to the White House, symbolizing their "ironclad alliance," but the rift between the two had already been sown.

After the "split," Trump directly withdrew Musk's recommendation for the NASA director nomination, cut various contracts, and finally openly mocked his Tesla as "surviving on government subsidies" in public.

American media said that this "Trump-Musk split" was essentially a struggle between populism and tech elites. After all, Trump wants to consolidate the traditional energy and manufacturing base, while Musk bets on new energy and space economy.

The opposition from Democrats was equally loud. During the passage of the "Big and Beautiful" bill, House Democratic leader Jeffries set a historical record with a marathon speech lasting 8 hours and 46 minutes, condemning the bill as "a disgrace of robbing the poor to help the rich." Senator Bernie Sanders was more direct, saying it wasn't an economic policy, but a gift for billionaires.

Although these protests were essentially to delay time, it cannot be denied that Trump had offended a lot of people on this bill, accumulating a lot of "historical" opposition.

More intriguingly, 83-year-old Biden, who had stepped back from politics, suddenly appeared prominently. On July 3, Biden revealed at the San Diego meeting that several European leaders had called him to ask for his help, although he insisted he wouldn't return, he remained active behind the scenes as an advisor.

This veteran politician came from the Cold War era. Although he was mocked by Trump as "senile" and "Sleepy Joe," he was still an indispensable political force within the Democratic Party. This statement by Biden sparked many speculations from the outside world: was it a signal of dissatisfaction with Harris's leadership within the Democratic Party, or a move by the establishment against Trump?

The irony of history lies in the fact that the ripple effects of this political earthquake may far exceed the expectations of the parties involved. Although Musk's "American Party" faces the natural barrier of "winner takes all," as long as he can control the polls in one or two swing states, he can to some extent enter politics, after all, Trump was once a businessman himself.

While Trump was still smug about the passage of the bill, the wind direction of American politics had quietly changed. What exactly happened? Let's wait and see.

References:

Musk announced the establishment of the "American Party" on social media - July 6, 2025 · CCTV News

Biden: European leaders asked me for help, I gave them advice - July 4, 2025 · Observer Network

Original article: https://www.toutiao.com/article/7523970725737136649/

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