By News18
US President Donald Trump鈥檚 鈥極ne Big Beautiful Bill Act鈥 is nearing a final vote in the US House of Representatives after a turbulent and narrow passage in the Senate. The bill, which is expected to slash social welfare programs and include several tax cuts, may benefit Indians working in America.
The 鈥楤ig Beautiful Bill鈥 is a landmark tax reform bill that is central to his 2025 economic agenda, and a party still wrestling with internal divisions, as some Republicans have also joined Democrats in voicing opposition to the legislation.
The bill aims to slash corporate taxes, reduce rates for individuals, and stimulate business investment 鈥 moves Trump claims will reignite the economy and restore American prosperity. Critics have expressed concern over its impact on national debt and healthcare.
How The Bill Would Impact Indians?
The bill has presented a significant advantage for Indians by diluting the tax rate of remittances. The US is India鈥檚 largest source of remittances, with a contribution of around 25%, bolstering India鈥檚 foreign exchange reserves.
The updated draft of the One Big Beautiful Bill Act has reduced the tax rate on remittances from the originally proposed 5% to 1% and will be applicable to remittances made via cash, money orders or cashier鈥檚 checks. The tax rate was brought down to 3.5% in the House version of the Bill.
This provision will apply to all residents who are not US citizens, including Green Card holders, those with temporary visas such as H-1B or H-2A, and foreign students. The reduction of the tax rate will benefit nearly 45 lakh Indians living in the United States.
鈥淭here is hereby imposed on any remittance transfer a tax equal to 1 per cent of the amount of such transfer鈥he tax imposed by this section with respect to any remittance transfer shall be paid by the sender with respect to such transfer,鈥 read the updated version of the bill.
What鈥檚 Next For The Bill
The bill awaits a final vote after the Republican-controlled House of Representatives cleared a procedural hurdle by a 219-213 vote, indicating that the previously resistant Republicans had agreed to move forward with the bill.
Of the five Republicans who initially voted 鈥榥o鈥, four of them changed their votes to 鈥榶es鈥, delivering the votes necessary to pass the rule and advance the bill to set up a vote for final passage. This came after the bill narrowly cleared the Senate by a margin of 51-50 after US Vice President JD Vance cast the tiebreaker.
Trump had earlier expressed frustrations with dissenting Republicans. 鈥淟argest Tax Cuts in History and a Booming Economy vs. Biggest Tax Increase in History, and a Failed Economy. What are the Republicans waiting for??? What are you trying to prove???鈥 he wrote. 鈥淢AGA IS NOT HAPPY, AND IT鈥橲 COSTING YOU VOTES!!!鈥