Trump's 'Big, Beautiful Bill' gets Senate nod, awaits final vote. How will it impact Indians ?

PTC News Desk: US President Donald Trump's tax and spending legislation 'One Big Beautiful Bill' is awaiting for its final vote over the coming hours in the House of Representatives, the lower chamber of the American Congress.  Some of the members of Trump's own Republican party have aligned with Opposition and criticised the bill for several reasons including the impact on US national debt and healthcare.

What is Trump’s ‘Big, Beautiful Bill’?

The bill is a piece of legislation that combines tax cuts, spending hikes on defence and border security, and cuts to social safety nets into one giant package. The main objective of the bill is to extend Trump's taxcuts which are slated to expire by the end of 2025. The bill which is partially funded by cutting healthcare and food programmes will boost border security, the military and energy projects.

In 2017, Trump signed the Tax Cuts and Jobs Act, which lowered taxes and increased the standard deduction for all taxpayers, but it primarily benefitted higher-income earners.

How will the bill benefit India ?

In a massive relief for thousands of non-resident Indians (NRIs) and Indian professionals working in the US, who send money back home, the proposed bill shows reduction on the tax remittances capped at 1 per cent, down from the 5 per cent. 

The rule will be applicable to all US residents who aren't US citizens-including Green Card holders, people on temporary visas such as H-1B or H-2A and foreign students.

"There is hereby imposed on any remittance transfer a tax equal to 1 per cent of the amount of such transfer...The tax imposed by this section with respect to any remittance transfer shall be paid by the sender with respect to such transfer," the updated draft of the bill states.