Who wins and loses this
president Donald TrumpAs expected, the legislative package is split. Republicans are pitching it as “one big beautiful bill.” Democrats call it “one big beautiful betrayal.” Let’s take a look at some of the bills Important elements.
winner: The bill is seeking to extend the 2017 Tax Cuts and Employment Act (TCJA). This means that the expiration provisions that benefit high-income and wealthy incomes will be permanent.
It also aims to eliminate tips and federal taxes on overtime salaries and meet some of Trump’s campaign promises.
The tax cuts will reduce revenues by $4.9 trillion over the decade, but will increase military, defense and border security spending.
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So, if lawmakers sign the bill, then the major US defense contractors are RTX Corp. (NYSE:RTX) and Lockheed Martin Inc. (NYSE:LMT) could benefit from increased defense spending.
Other companies exposed to the defense sector, including Palantir Technologies, Inc. (Nasdaq:fungi) and Booze Allen Hamilton Holding Corporation (NYSE:Bah) They can also benefit from increased military and defense spending.
loser: The cost of the tax bill is partially balanced with new taxes on private university contributions and significant cuts in programs like Medicaid.
Stocks of major Medicaid managed care organizations could become vulnerable to the challenges of registration volatility and premium pricing if the changes are approved. Investors should be wise to monitor UnitedHealth Group, Inc. (NYSE:UNH),, Cents Corp. (NYSE:CNC) and Elevance Health, Inc. (NYSE:principle) When bills move through Congress.
Low-income Americans who rely on food aid should also be aware. House Republicans are proposing major changes to the Supplementary Nutrition Assistance Program or SNAP. The program supports more than 42 million Americans. The bill will shift 5% of management costs and 75% of management costs to the state, increasing from the current 50% shares of management only. They are also looking to expand their work requirements to recipients up to age 64.
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Democrats have criticized the move as harmful to their families, but Republicans say it will promote jobs and reduce waste. The House Agriculture Committee has already approved a $300 million snap cut to help fund tax credits.
If the legislative package is handed over, it is also the end of many clean energy initiatives and major tax credits, and charges new fees for electric vehicles. These changes could slow the growth of the clean energy sector and make electric vehicles and renewable energy less competitive compared to traditional energy sources.