The President of the United States, Donald Trump, signed the One Big Beautiful Bill Act on July 4, an ambitious tax reform that expands tax cuts and redefines business and energy incentives. Its effects transcend borders and condition global investment flows.
The President of the United States, Donald Trump, enacted the One Big Beautiful Bill Act on July 4, one of the most ambitious tax and budget reforms in recent decades. Although it is a US law, its consequences are felt across all economies linked to the world's leading power, especially in international investment flows.
The pillars of Trump's tax reform
The new law consolidates the tax cuts approved since 2017, which reduced the corporate tax rate from 35% to 21% and lowered the tax burden on high incomes. The declared aim is to incentivise consumption, investment, and economic growth.
Additionally, it introduces tax benefits for workers with deductions for tips, overtime, and credits for car purchases. Companies also benefit: deductions for investments are expanded and accelerated depreciation of productive assets is allowed.
In the energy sector, the reform reduces tax incentives for clean energy projects, altering the environmental policy of the previous administration. On the other hand, it increases spending on border security and immigration control, as well as on other priority programs of the US government.
Criticism over the deficit and public debt
The reform has not been without controversy. Various analysts warn that it could spike the fiscal deficit and public debt of the United States over the next decade. Supporters, on the other hand, argue that it will energise the economy and attract new investments.
“It is a risky bet: cutting tax revenues while increasing spending can create an imbalance that will have to be corrected sooner or later,” sources from the Institute for Fiscal Studies point out.
The Congressional Budget Office (CBO) estimates that the law could add between $3 and $5 trillion to the public debt over the next ten years, depending on the economic growth it generates.
Impact on global investment and in Spain
For Spanish investors and entrepreneurs, the reform has direct implications. The United States is the main trading partner of the European Union and one of the largest recipients of foreign investment. If companies find more advantageous tax conditions in the US, part of the international capital could be redirected there.
However, a more dynamic US economy could also increase demand for European exports, benefiting sectors such as automotive, manufacturing, agro-industrial, and services. The net balance for Spain will depend on the ability of companies to adapt to a more competitive tax environment.
Experts recommend that tax advisors and investment consultants closely monitor the developments of the law, as the tax decisions of the world's largest economy often influence the fiscal policies of other countries. Understanding international tax policy is no longer an option; it is a competitive advantage.
What to expect in the short term
The law is already in effect, but its effects will unfold gradually. Investors should pay attention to capital movements and possible reactions from central banks. The next milestone will be the publication of the first growth and tax revenue data following the enactment of the reform, expected in the first quarter of 2026.
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