📊 Fiscal Impact Formula

ΔDebt = ΔSpending – ΔRevenue
ΔSpending ↑
More Spending
ΔRevenue ↓
Less Revenue
➡️ Result: Rising National Debt

Our equation summarizes a key economic concern: when federal spending increases while revenues fall, the structural deficit widens, and the national debt grows. The “One Big Beautiful Bill Act” exemplifies this dynamic, raising long-term fiscal sustainability issues unless matched with offsetting policies or significant economic growth.

The “One Big Beautiful Bill Act” is making headlines—but what if we could make it smarter, safer, and more fiscally sound? This proposal reshapes H.R. 1 into a bold new vision for America’s future—where immigration reform, economic growth, and national security align.

At the Department of Technology, we focus on technology, science, and mathematics—not partisan politics. For the sake of clarity and brevity, the financial implications of the “One Big Beautiful Bill Act” can be summarized with a simple equation:

ΔDebt = ΔSpending – ΔRevenue
In the context of the “One Big Beautiful Bill Act,” the simultaneous expansion of spending and reduction in federal revenue creates a structural imbalance—driving the debt trajectory upward without offsetting economic growth or fiscal discipline.

📊 Why Our Equation is Accurate:

ΔDebt = ΔSpending – ΔRevenue

(↑ Spending + ↓ Revenue → ↑ National Debt)


🔺 Increased Spending

  • Defense & Military: Shipbuilding, munitions, cybersecurity, border operations (Title II)
  • Agriculture & Rural Investment: Subsidies, conservation, infrastructure (Title I)
  • Healthcare: Medicaid/CHIP changes, Medicare payment updates (Title IV, Subtitle D)
  • Border Security: New ICE personnel, vehicles, detention centers (Titles VI & VII)
  • Farm Subsidies: Expanded Price Loss Coverage & base acres (Sec. 10101)

🔻 Reduced Revenue

  • Tax Cuts: Permanent extension of Trump-era tax relief (Title XI, Subtitle A)
  • New Exemptions: No tax on tips, overtime, car loan interest (Sec. 110101–110104)
  • Expanded Credits: Child care, family leave, charitable deductions (Sec. 110105+)
  • Green Tax Repeals: Clean energy incentives eliminated (Sec. 112001–112015)
  • Fee Reductions: EPA, DOE, and energy permitting fees rescinded (Titles IV & VIII)

➡️ Conclusion

Result: Rising national debt due to increased spending and decreased revenue.

Under our expanded proposal, immigration enforcement targets only violent criminal non-U.S. citizens, prioritizing public safety without bloated detention budgets. Meanwhile, a pathway to legalization is created for immigrants who entered the U.S. before January 1, 2020, with requirements for clean records, tax compliance, and background checks. It’s a humane approach—integrated with smart fiscal policy, including the introduction of a Department of Technology to drive innovation and cost-effective government investment.

This reimagined version of the “One Big Beautiful Bill Act” honors the bill’s ambition while eliminating unnecessary spending and replacing fear-based immigration policies with data-driven, revenue-positive solutions. It protects American jobs, fortifies the economy, and ensures long-term sustainability without sacrificing our values.

Discover how this improved version of H.R. 1 transforms the “One Big Beautiful Bill” into a truly responsible blueprint for American prosperity.

Click here to explore the full proposal now.


How the above Bill Increases the U.S. Deficit

1. Major Tax Cuts (Reduces Government Revenue)

The bill extends or expands many tax breaks, which means the federal government will collect less money:

  • Keeps in place the lower income tax rates that were set to expire after 2025.
  • Keeps the higher standard deduction, reducing taxable income for most households.
  • Increases and extends the child tax credit, which gives families more money back on their taxes.
  • Extends a large tax break for business owners (the 20% deduction on pass-through income).
  • Increases the amount of inheritance and gifts that can be passed tax-free.
  • Reduces the number of people affected by the Alternative Minimum Tax (AMT).
  • Creates new tax exemptions for tips, overtime, and interest on car loans.
  • Expands tax credits for family leave, child care, and adoption.
  • Makes student loan payments made by employers permanently tax-free for workers.
  • Introduces “Trump Accounts” that allow tax-free savings for education, housing, and small business.
  • Significantly expands Health Savings Account (HSA) benefits.
  • Eliminates or limits several clean energy tax credits, which removes funding sources that helped offset earlier spending.

These tax cuts could cost over $3 trillion over 10 years, based on similar past legislation.


2. New and Increased Spending

Health Care:

  • Gives new tax credits to employers for offering specific types of health insurance plans.
  • Expands what can be paid for tax-free through Health Savings Accounts.
  • Allows older adults (on Medicare) to continue contributing to HSAs.
  • Offers tax breaks for gym memberships and other wellness expenses.

Defense and Military:

  • Increases funding for the Department of Defense across multiple areas, including:
    • New nuclear weapons systems (like ICBMs, bombers, and submarines).
    • Shipbuilding, missile defense, and military readiness.
    • Border operations and cybersecurity upgrades.
  • Also includes new funds for:
    • Air traffic controller hiring and training.
    • Upgrades to the Kennedy Center for the Performing Arts.

This new military and defense-related spending adds up to hundreds of billions of dollars.


3. Attempted Cost Reductions (Offsetting Cuts)

The bill includes some spending cuts, but they are relatively small compared to the tax cuts and spending increases:

  • Cuts funding from clean energy, environmental programs, and the Inflation Reduction Act.
  • Reduces funding for green vehicle programs and climate resilience efforts.
  • Introduces stricter work and eligibility rules for Medicaid and food assistance programs.
  • Limits eligibility for some programs to U.S. citizens and certain legal residents.
  • These changes may save tens of billions of dollars, but not nearly enough to offset the tax cuts or defense spending.

4. Debt Limit Increase

  • The bill raises the federal debt ceiling by $4 trillion, allowing the government to borrow significantly more.
  • This confirms the expected impact of large new deficits.

Total Estimated Fiscal Impact (10-Year Window)

CategoryEstimated Fiscal Impact
Major tax cuts-$3.0 to -$3.5 trillion
Defense and military spending-$0.5 to -$1.0 trillion
Health care and family benefits-$0.3 to -$0.5 trillion
Offsetting cuts (savings)+$0.3 to +$0.5 trillion
Net deficit increase-$3.5 to -$4.5 trillion

(Note: These estimates are based on comparable historical policy costs and may vary depending on implementation and economic conditions.)


Summary

The bill significantly cuts taxes and increases federal spending—especially on defense and health-related benefits—without enough cost-cutting to make up the difference. As a result, it would substantially increase the U.S. budget deficit, likely by between $3.5 and $4.5 trillion over the next decade.

Leave a comment

Trending