An investment expert responsible for managing billions of dollars in assets blasted the U.S. Senate's recently passed One Big Beautiful Bill Act, saying the legislation will tank clean energy and transportation while keeping a massive tax loophole for wealthy hedge fund managers.  

"While the big ugly bill is attempting to destroy clean energy and transportation, not a whiff of taxing carried interest," Ross Gerber, chief executive officer of Gerber Kawasaki Wealth and Investment Management, posted on X on June 30, a day before the bill was passed. "The biggest tax scam out there." 

What's happening?

The so-called "Big Beautiful Bill," originally introduced in the House to implement President Donald Trump's agenda through a process known as budget reconciliation, has been highly criticized by members of both parties for a number of reasons — from its drastic cuts to Medicaid and Medicare to its huge tax breaks for the ultra-wealthy.

Among the bill's more unpopular provisions have been rollbacks to clean energy incentives, largely tied to the Inflation Reduction Act, which represented the nation's largest-ever investment in reducing heat-trapping pollution and addressing rising global temperatures, according to the Department of Energy. 

Since the IRA's enactment, companies have poured $321 billion into clean energy projects, according to the Clean Investment Monitor, with a total of 2,369 new facilities opened. 

The federally backed push to advance technology and infrastructure that can mitigate pollution and provide families with cost savings has resulted in over 30,000 jobs across Texas, Georgia, North Carolina, and Michigan. And even more money stands ready to be invested going forward. 

"Looking ahead, $522 billion of outstanding investment remains to be spent on construction and installation for announced or under-construction facilities," according to the Clean Investment Monitor's Q1 2025 Update, which said the planned but so far unspent financial infusion is intended to build more than 2,000 facilities projected to generate close to 55,000 jobs across five states. 

But much if not all of this potential growth could be in jeopardy if the "Big Beautiful Bill" becomes law. 

Having been introduced in the House, the Senate passed an amended version of the legislation on July 1, sending the new draft back to the House, where it could be approved, further revised, or sent back to committee.

Meanwhile, as Gerber pointed out, the bill does nothing to address the multi-billion-dollar tax loophole that allows ultra-wealthy fund managers to pay the capital gains rate of 23.8% rather than the income tax rate of 37% on their share of profits, according to Benzinga. 

The nonpartisan Congressional Budget Office has estimated that closing the carried-interest loophole would raise government revenues by around $13 billion over 10 years, meaning the provision could cost an average of about $1.3 billion annually. 

Why is the "Big Beautiful Bill" concerning?

Essentially, adding up the ways it makes cuts and tax breaks, the One Big Beautiful Bill Act proposes a wealth transfer, trading a future of cleaner, more affordable energy — along with food assistance and health care for millions of low-income Americans — while reducing taxes and increasing subsidies for high-income individuals and big businesses. One of those subsidies, too, is to benefit the coal industry. 

Despite slashing social and clean energy programs, the CBO has estimated the bill would actually add nearly $4 trillion to the federal deficit, due mostly to the $4.45 trillion in tax cuts, according to the Committee for a Responsible Federal Budget. 

What's being done?

Having been introduced in the House and then revised in the Senate to passage, the Senate version of the "Big Beautiful Bill" now sits with the House for potential approval, further revisions, or a return to committee to work out disagreements.

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After previously passing by only razor-thin margins largely along party lines, the bill appears poised to pass, however. Still, it has not yet become law. And that means there is still time for concerned residents to share their opinions with their elected officials. You can contact your representative about it through a pre-formatted email here or by phone here.

While ultimately she voted to approve the Senate version, Senator Lisa Murkowski said she hoped the House would make further changes to the bill. Apart from simply voting yes or no, Congress members might still take on feedback and propose amendments or persuade their colleagues to think differently about the bill's impacts.

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