Non-partisan report: Trump tax cuts would benefit wealthy at expense of poor

Yahoo

20 hours ago

June 12 (UPI) -- The House-passed budget reconciliation bill promoted by the Trump administration would benefit higher earners at the expense of lower-income Americans, the nonpartisan Congressional Budget Office reported Thursday.
The CBO's findings said between 2026 and 2034, after-tax federal benefits "would decrease for households toward the bottom of the income distribution, whereas resources would increase for households in the middle and top of the income distribution," the report said.
"If you are a hardworking American that is struggling to take care of your family, you are going to love this legislation," Republican House Speaker Mike Johnson said during an interview on Fox News last week.
But the CBO report indicates that the top 10% of earners would receive the highest tax cuts.
The CBO analysis shows that households earning up to $107,000 yearly will see an average tax cut of $1,200 annually through 2034. People making up to $138,000 annually will see a $1,750 tax cut; those earning up to $178,000 will see a $2,400 yearly benefit; those bringing in $242,000 will see a $3,650 benefit; and households earning up to $682,000 a year can expect an annual $13,500 tax benefit.
A recent analysis by the Joint Taxation Committee reflected the results of the CBO report and also suggested that lower income Americans would benefit less from the legislation than higher earners.
The budget bill, which has seen staunch opposition from Democrats, faith leaders and social service advocates, faces a tough road in the Senate, where even some members of the GOP have expressed concern about the depth of the cuts, especially to Medicaid services and SNAP benefits, which would fall most squarely on the most vulnerable Americans.
Academics and scientists have also been critical of proposed reductions in research funding in the budget bill while adding trillions of dollars to the national debt.