Tag: big-beautiful-bill

President Trump has been responsible for a myriad of accomplishments in his short tenure, for example, closing the border, deporting illegal immigrants, reducing crime in cities that welcomed his assistance, passing the “Big Beautiful Bill (the effects of which will kick in commencing in 2026), reducing inflation, and eliminating Iran’s nuclear capabilities, among others.

To be sure, those accomplishments are laudable, however, a large portion of the electorate is still dissatisfied with the state of the economy, particularly the rate of inflation, the price of gas, the cost of healthcare and the unaffordability of buying a first home. Home ownership is and always has been an endemic part of the “American Dream.” Since Trump is the president, rightly or wrongly, most of them are blaming him.

According to the latest Economist/YouGov survey despite all of the above positives President Trump’s approval rating has been in a steady decline for the last seven weeks. His latest approval rating was 38%, and his disapproval rating was 57%. The latest Reuters/Ipsos survey yielded similar results. Even more ominous the same polls disclosed that 55% of the respondents were more likely to vote for the Democrat candidate in their district, compared to 41% who said they would vote for the Republican candidate. This does not augur well for Republicans in the 2026 midterm elections. If they lose control of the legislature Trump’s ambitious agenda is likely to be thwarted.

Also, history is not on his side. Normally, the party in power loses a goodly number of House and Senate seats in the off-year elections.

Of course, Trump is cognizant of all that. Consequently, he is beginning to focus more on the economy. Historically, absent a monumental catastrophe, such as a world war or a 9-11 style terror attack, the most important issue to voters is always the economy. Yes, people care about other issues such as crime, healthcare, security and immigration, but they care more about a good job, the cost of food, being able to afford a nice place to live, supporting their family, the cost of gas, the cost of healthcare, their retirement, and their children’s and grandchildren’s future. Hence, the well-worn expression: “It’s the economy, stupid!”

Below please find some of the recent Trump initiatives regarding the aforementioned, which are designed to lower the cost of living and enhance the quality of life for all Americans. Some of these are already in process; others are just proposals, some of which may require the approval of Congress.

1. Ramping up drilling for oil and gas, which, due to the fundamental law of supply and demand, should lower the prices of fuel both in the home and at the pump. Lower energy prices lead to lower prices on all goods and services, most notably food. According to AAA the national average of a gallon of regular gas at the pump is $2.999.  Of course, this will vary from state to state depending on state and local taxes and other factors. By comparison, according to the US Energy Information Administration the cost in 2022 and 2023, the last two years of the Biden Administration, was $3.52 and $3.95, respectively. In my view, Biden’s woke, green energy policies drove prices up, whereas Trump’s “drill baby drill” policy is driving them down. Therefore, it is unfair to blame the current cost of energy on Trump.  According to the more recent data available (“blue woke”) California has the highest average gas price at around $4.65 per gallon for regular, while (“red”) Oklahoma has the lowest at approximately $2.53 per gallon.  Make of that what you will.
2. For most social security recipients one of the provisions of the “Big Beautiful Bill” will enable them to offset their federal income tax liability with a special federal income tax deduction.
3. The BBB also authorizes the creation of the so-called “Trump Accounts,” which essentially are a tax-deferred investment account for qualifying newborns into which the Treasury Department of the federal government will deposit $1,000. The account will grow tax-deferred until the newborn turns 18. Then, the account will function as a traditional IRA. Briefly, to qualify babies must have been born to American citizens from January 1, 2025 through December 31, 2028 and have a valid social security number. In addition, the Dell family has pledged to utilize the “Trump Accounts” infrastructure to give $250 to each qualified child under 11. These initiatives are designed to encourage American citizen families to have babies by easing the financial burden of raising a family and helping to provide for them as they grow into adulthood. (For various reasons many families are postponing having children or deciding not to at all.)
4. The BBB extended the 2017 “Trump Tax Cuts,” which will provide massive federal tax cuts for most taxpayers.
5.  The so-called “Trump Tariffs” have been very controversial. The question is are they currently and will they prospectively have a positive or negative effect on the economy? Recent studies indicate that generally the impact of tariffs is to raise prices and reduce available quantities of goods and services for US businesses and consumers in the short run. According to the Tax Foundation the Trump tariffs will equate to an average tax increase of $1,100 per US household in 2025. On the other hand, the Trump tariffs, both threatened and imposed, have forced other countries who had been taking advantage of us in international trade for many years to lower their own tariffs substantially. Furthermore, the tariffs have been raising tens of billions, some claim trillions, of dollars for the federal government. Perhaps, more significantly, many foreign companies have invested or pledged to invest trillions of dollars to build or expand their businesses and/or build new factories in the US in order to avoid these tariffs. This will translate into good, high-paying permanent jobs and reduce the unemployment rate, which is currently slightly up at 4.4%. In summary, are these tariffs good or bad? In my opinion, it is still too early to tell. It may take years to determine. At the of risk oversimplifying matters I believe the answer is probably predicated on whether one is pro-Trump or anti-Trump.

Conclusion

As I said above, Trump is cognizant of the voters’ concerns regarding the economy. Accordingly, he has and will continue to develop policies to improve it. Many, if not most, of the problems with respect to the economy are holdovers from the Biden Administration and his woke/green policies. Data shows the economy is improving. Inflation is down. Gas is down. The positive impact of the BBB should be effective starting in 2026. The question is will the voters give Trump’s policies time to work or not.

The cost of healthcare remains a thorny, complicated and highly politicized problem that Trump and the Congress will have to address together. One can only hope that they resolve it expeditiously.