Trump's 4th of July gift for Americans is 'One Big Beautiful' debt: How the bill could push US into bankruptcy

With the One Big Beautiful Act passed by both the houses, US President Donald Trump is set fulfil key promises he made to the American public during the 2024 election campaign. These include tax cuts on tips, overtime perks and Social Security benefits.

Trump is set to sign the Act at a party conducted on the White House lawn, celebrating the US Independence Day. However, many are wondering whether this Fourth of July gift from the president is actually a boon or bane to the Americans.

The main reason is that the One Big Beautiful Act is likely to raise the national debt ceiling of the country by $3 trillion, according to the Congressional Budget Office (CBO). The non-partisan body projects that the Act will cut revenue from tax by $4.5 trillion and slash spending by $1.2 trillion. The Act will also make yet another 11.8 million US citizens uninsured by 2034, according to CBO figures.

The total US national debt amounts to $36 trillion, as per treasury department figures. This could make the interest on debt the largest line item in the country's budget by 2030s, according to analysts.

A higher debt ceiling raises concerns about subdued demand for US bonds, which have boosted the Wall Street recently. "The bill contributes to some of the structural concerns around Treasuries, with respect to No. 1, ongoing fiscal deficit and elevated debt levels, and No. 2, inflation," Reuters quoted Mike Medeiros, macro strategist at Wellington Management, as saying.

Elon Musk, who had a fallout with Trump recently over the bill and called it the "Debt Slavery Bill", took to X on July 4, asking, "Should we create the America Party?"

"Independence Day is the perfect time to ask if you want independence from the two-party (some would say uniparty) system!" he added.

Earlier, Musk claimed that "everyone seems to be whistling past the graveyard" despite the country heading to bankruptcy.

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