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GOP Tax Bill Would Cost Low-Income Americans $1,600 a Year and Boost Highest Earners by $12,000, CBO Says
- The nonpartisan Congressional Budget Office released a distributional analysis on Thursday showing that the Republican tax and spending bill largely benefits high earners while reducing resources for the poorest households.
- The bill proposes over $3 trillion in tax reductions coupled with nearly $1 trillion in cuts to government spending, primarily targeting programs like Medicaid and SNAP, which leads to decreased benefits for the lowest-income households.
- The CBO reported that households in the highest 10% bracket, with incomes near $692,000, are projected to benefit from tax cuts averaging about $12,000 annually. Those with moderate incomes, roughly between $86,000 and $107,000, are expected to see annual increases ranging from $500 to $1,000, while lower-income families would experience an average yearly loss of approximately $1,600.
- Representative Brendan Boyle described the bill as causing an unprecedented shift of financial resources away from middle- and lower-income families toward the wealthiest Americans, emphasizing its disproportionate effects across different income levels.
- The bill, passed by the House last month, faces stiff opposition in the Senate amid concerns it could increase the federal deficit by $2.4 trillion and worsen economic inequality.
80 Articles
80 Articles
Trump-GOP Budget Bill 'Takes From the Poor and Gives Most to the Rich,' CBO Analysis Confirms
A new report from the Congressional Budget Office estimates that the Republican legislation would cut household resources for the bottom 10% and boost them for the richest 10%, making it "uniquely regressive."
The Most Regressive Legislation in Decades
New York Times: “The Republican megabill now before the Senate cuts taxes for high earners and reduces benefits for the poor. If it’s enacted, that combination would make it more regressive than any major tax or entitlement law in decades.”“The bill as passed by the House in May would ra
Trump's 'Big, Beautiful Bill' Pulls $1,600 From Poorest, Adds $12,000 For Richest Annually, Shows CBO Analysis
House-passed bill slashes income of poorest Americans by $1,600 & boosts wealthy by $12,000, middle-income families gain modestly, but low-income families lose due to Medicaid cuts & work requirements reveal new CBO analysis.
How H.R. 1, the One Big Beautiful Bill Act, Would Affect the Distribution of Resources Available to Households
CBO's interactive tool allows users to explore how H.R. 1, the One Big Beautiful Bill Act, as passed by the House of Representatives on May 22, 2025, would affect the economic resources available to households grouped by income.
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Bias Distribution
- 66% of the sources are Center
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