<ul data-eligibleForWebStory="false"><li>The OBBBA legislation in the US is controversial, with opposing views on its impact - regressive Medicaid cuts and tax exemptions vs. extending income tax breaks and corporate deductions.</li><li>The Act's overall impact will depend on American labor and capital productivity, potentially leading to increased work incentives but reducing incomes and welfare for the less affluent.</li><li>Concerns are raised about the US budget deficit increase due to higher borrowings, but historic precedents suggest the country's ability to manage debt despite high levels post-World War II.</li><li>Financial markets have mixed reactions to the Act, with stocks favoring tax breaks and potential GDP growth but bonds expressing concerns over the deficit, leading to increased US bond yields.</li></ul>

Editorial. Trump’s ‘Beautiful Bill’ could help US growth but at a cost

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