Latest news with #DonaldTrump'stax
Toronto Star
11-08-2025
- Business
- Toronto Star
Trump's tax law will mostly benefit the rich, while leaving poorer Americans with less, CBO says
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.
Winnipeg Free Press
11-08-2025
- Business
- Winnipeg Free Press
Trump's tax law will mostly benefit the rich, while leaving poorer Americans with less, CBO says
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.
The Sun
21-05-2025
- Business
- The Sun
US House Republicans try to unify around Trump tax cut bill
WASHINGTON: Republicans in the U.S. House of Representatives on Wednesday were trying to close in on a deal to pass President Donald Trump'stax cut and spending bill, with overnight talks focused on spending cuts and breaks for people in high-tax states. The gate-keeping House Rules Committee began debate at around 1 a.m. EDT (0500 GMT), aiming to pass by as early as Wednesday a measure that is estimated to add trillions to the nation's $36.2 trillion in debt. Success in the House would set the stage for what is expected to be weeks of debate in the Senate. Republicans, who control both chambers of Congress, are waiting for their leadership's overall amendment package to the bill that is meant to coalesce the party's sparring factions. Democrats have also proposed more than 500 amendments. If the legislation is passed by Congress, it would reduce some health and food benefits for low-income Americans, cancel green-energy programs and provide tens of billions of dollars for immigration enforcement. Trump huddled with Republican lawmakers on Tuesday to try to persuade holdouts to get in line on what he calls a 'big, beautiful bill,' but the visit failed to sway the wide array of lawmakers who object to specific features. House Speaker Mike Johnson has little room for error, as his party holds a narrow 220-212 majority and a handful of 'no' votes from his side could scuttle the bill, which Democrats say favors the wealthy and cuts needed social programs. The bill would extend the 2017 tax cuts that were Trump's signature first-term legislative achievement, and also add tax breaks on income from tips and overtime pay that were part of his populist push on the campaign trail last year. Nonpartisan analysts say it could add $2 trillion to $5 trillion to the federal debt. 'Failure is not an option in getting this done,' Representative Jason Smith of Missouri, the Republican chairman of the House tax-writing committee, said during the debate on Wednesday that 'Americans voted for an America where workers and families will thrive again, Main Street and rural towns will grow again, and America wins again.' Democrats said the bill disproportionately benefits the wealthy and cuts programs needed by working families. 'We're going to ask Americans to finance tax cuts for billionaires on the national debt - on the credit card,' said Representative Gwen Moore, a Democrat on the tax-writing committee. 'Deficits aside, this bill is ugly because it is ultimately a betrayal of the contract that we have made with the American people, and especially to our babies and to our working people.' DEBT CEILING The Medicaid health program for low-income households has proven to be a major sticking point, with fiscal hawks pushing for cuts to partly offset the cost of the bill's tax components, which moderate Republicans say would hurt voters whose support they will need in the 2026 midterm congressional elections. The bill also faces objections from a handful of centrist Republican lawmakers from high-tax states, including New York and California, who are pushing to expand a proposed $30,000 cap on deductions for state and local taxes. Trump is pushing for unanimous support from Republicans, and said on Tuesday that the holdouts could be drummed out of the party. The bill would raise the nation's debt ceiling by $4 trillion. Lawmakers must act to address that limit by this summer or risk triggering a devastating default. Credit-rating firm Moody's last week stripped the U.S. government of its top-tier credit rating, citing the nation's growing debt. If the package passes the House, it would then head to the Senate, where Republicans hold a 53-47 majority. That would not be expected until next month, as members of Congress are preparing to leave Washington next week for a week-long break.
