Trump's tax law will mostly benefit the rich, while leaving poorer Americans with less, CBO says

Yahoo

2 days ago

WASHINGTON (AP) — President Donald Trump'stax and spending law will result in less income for the poorest Americans while sending money to the richest, the nonpartisan Congressional Budget Office reported Monday.
The CBO estimates that the 10% of poorest Americans will lose roughly $1,200 a year as they experience restrictions on government programs like Medicaid and food assistance, while the richest 10% of Americans will see their income increase by $13,600 from tax cuts. Overall, American households will see more income from the tax cuts in the legislation, including middle income households, but the largest benefit will go to the top 10% of earners.
The CBO's report comes as lawmakers are away from Washington, many taking their messages about the bill to voters. Republicans muscled the legislation — deemed 'the big, beautiful bill' by Trump — through Congress in July. Democrats all vehemently opposed the legislation, warning that its tax cuts and spending priorities would come at the expense of vital government aid programs and a ballooning national debt.
'This really is a big, beautiful bill for billionaires, but for the poor and the working class in this country, you are actually poorer,' said Rep. Brendan Boyle, the top Democrat on the House Budget Committee, in an MSNBC interview on Monday.
Changes to eligibility for government food assistance under the law will impact millions of Americans, the CBO found. Roughly 2.4 million people won't be eligible for the Supplemental Nutrition Assistance Program under new work requirements for many recipients. Low-income Americans could also see their income reduced through further restrictions on food aid and other types of assistance included in the law.
Already, more than 10 million Americans are expected to be without health insurance by 2034 due to changes to Medicaid under the law.
Republicans were eager to sell the upsides of the legislation — arguing that the tax cuts will spur economic growth — while they are on a monthlong summer break from Washington. But those who have held townhalls in their home districts have often been greeted by an earful from voters and activists.
'Tax the rich,' the crowd in Lincoln, Neb. chanted last week as Republican Rep. Michael Flood attempted to defend the bill.
Still, Trump has been undeterred.
'President Trump's One Big Beautiful Bill is putting America First like never before, delivering huge savings for hardworking families, boosting our economy, and securing our borders,' said White House deputy press secretary Abigail Jackson in a statement last week.
Stephen Groves, The Associated Press