Trump presents a huge tax package: Effects for Germany too!

Trump presents a huge tax package: Effects for Germany too!

Meißen, Deutschland - Today, on July 4, 2025, there are some exciting developments to report in the global political arena. A special glance applies to the recently adopted tax and expenditure law "Big Beautiful Bill", which was presented by Borkener Zeitung as one of the central themes of the day.

The law, whose formal farewell in the House of Representatives, chaired by Mike Johnson with 215 votes and 214, achieved massive tax relief of $ 4.5 trillion. These reliefs come from the political initiatives of the Trump administration and are primarily intended to favor medium-sized companies and investors. While Trump promises comprehensive growth, critics and supporters have to ask the question of whether it is actually possible to strengthen the US business location, or whether the law only benefits the already wealthy Americans. Tagesschau reports that the Senate must agree before the legislative decision comes into force.

The core content of "Big Beautiful Bill"

The central proposals not only include tax relief, but also significant expenses for defense and border security. Among other things, the following points are defined in the law:

• Extension of the Trump era income tax rates by 2026.
• increase in standard deduction for individuals by $ 1,000 and for married pairs by USD
• Introduction of new deduction options for drinking money, overtime and age expenditure.
• increase in the child allowance to up to $ 2,500
• increase in the defense budget by

In addition, however, there are also hard cuts in the social programs: up to 8.6 million people could lose their health insurance through planned changes to Medicaid. US Chancellery emphasizes the risks that work obligations for social benefits and shortening in food brands could affect about three million Americans.

capital and investments in the focus

The law also combines a certain risk for foreign investors, especially from Germany, Austria and Switzerland. The changes in the US tax law could then make it necessary to check existing investment structures and, if necessary, adapt it. From 2025, higher source taxes will face income from certain countries, which could be understood as "retaliation tax". There are also significant challenges for investors from the DACH region, while new opportunities for US investors are also opening up.

With a view to the international conditions, the Aschura fate day for Shiite Muslims in Nadschaf, Iraq, was also mentioned in Cologne and elsewhere. Religious processions and funeral rituals shape this day and show the cultural diversity that is present in an international context in addition to the many political reports.

It remains exciting to wait and see how the situation will develop around the "Big Beautiful Bill" and what effects it will have on American society and international relationships. President Trump's pressure on the legislators is clearly noticeable - there is certainly little room for steps.