What is the One Big Beautiful Bill (OBBB)? In our “Daily News Explainer” series, today we bring you a very important and relevant topic that has been making headlines. This article will not only update you on current affairs but will also help students preparing for various competitive exams such as UPSC, Banking, SSC, CLAT, CUET, and other state-level examinations. Stay informed and boost your exam readiness with this detailed analysis.
In Short (Quick Summary):
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Elon Musk resigned from Trump’s DOGE department on May 28, 2025.
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The reason: a controversial bill called “One Big Beautiful Bill (OBBB)”, supported by Donald Trump.
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This bill includes major tax cuts, spending reforms, and controversial provisions on remittance tax and energy.
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Critics fear it may hurt the U.S. economy, increase public debt, and raise utility costs.
What is the One Big Beautiful Bill (OBBB)?
The One Big Beautiful Bill is a legislative proposal backed by former U.S. President Donald Trump that combines several of his policy goals into one massive framework. It aims to:
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Cut government spending.
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Make 2017’s tax cuts permanent.
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Impose a 3.5% fee on remittances sent by non-citizens.
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End subsidies for renewable energy projects.
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Tighten immigration laws.
The bill passed the U.S. House of Representatives and is now pending in the Senate.
Why Did Elon Musk Resign?
Elon Musk, who was appointed by Trump to lead the DOGE department (Department of Government Efficiency), resigned on May 28, expressing strong opposition to OBBB.
On X (Twitter), he wrote:
“As my term as a special government employee ends, I thank President Trump for the opportunity. But the OBBB is harmful to the U.S. economy and goes against efficient governance.”
His resignation signals a clear disagreement with the proposed economic and environmental changes under the bill.
Key Provisions of OBBB:
| Provision | Description |
|---|---|
| 💸 Tax Cuts | Multi-trillion dollar tax reductions; permanent 2017 tax cuts |
| 🧾 Remittance Fee | 3.5% tax on money sent abroad by non-citizens |
| 🚫 Renewable Energy | Removal of subsidies for solar, wind, and EVs |
| 🏠 Utility Impact | Possible increase in energy and utility bills |
| 🏛 SALT Deduction Cap | Raising tax deduction limit for local/state taxes from $10K to $40K for couples |
Economic Impact – What Experts Say:
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Job Loss: Up to 830,000 jobs may be affected.
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National Debt: May rise by $3.8 trillion.
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GDP Drop: Estimated $1 trillion decline over the next decade.
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Energy Costs: Average households may pay $230 more per year by 2035.
Economic Times and The Guardian warn that such a bill could seriously destabilize the U.S. economy, especially when inflation and energy prices are already high.
Global Concerns:
The bill’s proposal to tax remittances and cut green energy programs has drawn global criticism, especially from:
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Developing countries who depend on U.S. remittances.
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Clean energy investors, warning of rollback on climate progress.
What’s Next?
The bill awaits Senate approval. If passed, it would return to the House for a final vote. Trump has publicly urged the Senate to act fast.
Final Thoughts for Students:
The OBBB is a classic example of how economic policy, political ideology, and leadership disagreements can shape a nation’s future. Students should analyze:
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How policies affect the economy.
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Why political figures like Musk take public stands.
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The balance between fiscal responsibility and public welfare.
Source:
Compiled from multiple verified news reports including The Guardian, Economic Times, and other trusted newspaper and news agency.
