Donald Trump’s signing of the ‘Big, Beautiful Bill’ is set to ignite a significant messaging battle as the 2026 midterms approach. This legislation has wide-ranging implications for Hollywood and beyond.
What Donald Trump’s “Big, Beautiful Bill” Means for Hollywood
When Donald Trump signs the “Big, Beautiful Bill” on Friday, it will mark the beginning of a significant messaging battle as we approach the 2026 midterms.
Impact on Hollywood Activists
Hollywood activists, particularly those on the left, are expected to play a crucial role in this debate. Concerns are rising not only over major cuts to Medicaid and nutrition programs but also over a substantial increase in funding for immigration enforcement. Additionally, the legislation proposes a large-scale rollback of clean-energy initiatives, disappointing many, including climate activists and industry leaders like Elon Musk.
Republican Goals Behind the Legislation
The primary objective for Republicans in passing this legislation is to extend the tax cuts implemented in 2017 during Trump’s first term, alongside adding billions to border security and defense spending.
Tax Changes and Their Implications
This legislation introduces across-the-board tax changes affecting deductions for highly compensated employees and charitable giving. A significant change includes increasing the SALT deduction limit from $10,000 to $40,000, which will phase out at a $500,000 income threshold, while retaining the pass-through entity tax workaround. However, the SALT cap will revert to $10,000 in 2030.
Provisions Affecting the Entertainment Industry
Buried within this extensive legislation, which the Congressional Budget Office estimates will add $3.3 trillion to the national debt over the next decade, are provisions that could impact the entertainment and media sectors:
Sound Recording Expensing
The bill adds sound recordings to the list of Section 181 tax deductions, allowing artists and producers to deduct 100% of production expenses, up to $150,000, in the year they occur. This is seen as a significant win for independent artists, ensuring the music industry continues to thrive.
Spectrum Auction
The bill authorizes the government to identify and auction valuable spectrum for commercial use, aiming to raise $85 billion. This move is expected to create jobs and enhance high-speed connections for more Americans, although there are concerns about the potential loss of unlicensed spectrum.
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Funding for the Kennedy Center
Allocating $257 million for restoration and security at the Kennedy Center highlights Trump’s commitment to this national cultural arts center, contrasting with his plans to eliminate the National Endowment for the Arts and the National Endowment for the Humanities.
National Garden of American Heroes
The bill directs $40 million from the National Endowment for the Humanities budget to finance a National Garden of American Heroes, a project Trump has long advocated.
What’s Missing from the Bill
Notably absent from the legislation is a provision for a moratorium on artificial intelligence regulations, which some industry groups had fought for. Additionally, the bill does not address the performing artists parity issue, which would have allowed many performers to deduct expenses related to their work.
In conclusion, while the “Big, Beautiful Bill” includes several provisions that could benefit the entertainment industry, it also raises significant concerns among activists and industry stakeholders regarding its broader implications.
