Donald Trump

5 points about: Trump's budget proposal – "The big, beautiful bill"

Aftonbladet

Updated 08.30 | Published 07.44

President Donald Trump has submitted a comprehensive budget proposal to US lawmakers.

"The big, beautiful bill" as Trump calls it has prompted Elon Musk to threaten to start a new party.

Here are five points about the president's budget.

1. Budget news

The proposal would introduce tax exemptions for tips and overtime pay, as well as work requirements for Medicaid, the program that provides free or low-cost healthcare to people with low incomes. Financial benefits for climate initiatives are also limited and green energy taxes are scrapped. The budget also provides significant increases to the military and border protection, such as the construction of Trump's wall against Mexico.

2. Comeback reforms from 2017

Trump wants to make permanent parts of his previous tax reform from 2017, which temporarily lowered taxes for both companies and individuals. Among other things, he wants to keep lower corporate taxes, increased standard deductions and reduced marginal taxes – mainly to the benefit of high-income earners.

3. Costs for the budget

The 1,100-page budget proposal is expected to cost the United States a lot of money. There are different estimates for how much. According to the Congressional Budget Office (CBO), the bill is expected to end up with an increased budget deficit of around SEK 32,000 billion.

4. Musk's threat

Elon Musks is furious with Trump and the Republican Party over Trump's budget proposal, which the president calls "The Big Beautiful Bill".

Musk writes on X that he will start a new party if the proposal is voted through in the Senate.

“If this crazy bill passes, I’ll start the America Party the next day,” he wrote on X.

Musk has also said that it’s the exact opposite of what he did for the president with “DOGE,” the agency that slashed government spending.

5. The goal: Done by Independence Day

The “big, beautiful bill” is being processed through the budget reconciliation process, which allows for approval by a simple majority in the Senate. Having already passed the House of Representatives by one vote, the Senate is expected to vote on the bill before July 4th – Independence Day – as President Trump has requested.