WASHINGTON — The nonpartisan Congressional Budget Officer said Monday that President Donald Trump’s tax and spending plan will increase wealth for the wealthiest Americans while decreasing income for the poorest.
According to the CBO, the richest 10% of Americans will receive a $13,600 increase in income from tax cuts, while the 10% of the poorest Americans will lose around $1,200 annually due to constraints on government programs like food assistance and Medicaid. The legislation’s tax cuts will increase income for all American households, including middle-class homes, but the wealthiest 10% of earners will benefit the most.
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The CBO’s report is released as lawmakers are out of Washington, many of whom are delivering messages to voters regarding the package. In July, Republicans pushed what Trump called the “big, beautiful bill” through Congress. Democrats fiercely opposed the bill, claiming that its spending objectives and tax cuts would jeopardize essential government assistance programs and the nation’s already soaring debt.
Rep. Brendan Boyle, the leading Democrat on the House Budget Committee, stated in an MSNBC interview on Monday that while this measure is a great, beautiful deal for billionaires, it actually makes the poor and working class in this country worse.
Millions of Americans will be impacted by the law’s changes to eligibility for government food aid, the CBO concluded. The increased employment requirements for many members of the Supplemental Nutrition Assistance Program will exclude some 2.4 million people. Additional limitations on food assistance and other forms of assistance included in the law could potentially result in lower incomes for low-income Americans.
Because of the law’s modifications to Medicaid, it is already anticipated that over 10 million Americans will no longer have health insurance by 2034.
Rep. Jason Smith, the Republican chair of the House Ways and Means Committee, repeated his previous critique of CBO’s methodology after the report was released.
Smith claimed on social media that CBO has a problematic history of making inaccurate projections and is biased in favor of greater taxes and more federal spending, just like Democrats. Don’t purchase it.
During their month-long summer vacation from Washington, Republicans have been keen to tout the benefits of the legislation, claiming that the tax cuts will boost economic development. However, voters and activists have frequently given those who have hosted town halls in their own districts a resounding reception.
Tax the wealthy, the Lincoln populace, Last week, when Republican Representative Michael Flood tried to defend the bill, Neb. chanted.
Trump, however, has not been discouraged.
White House deputy press secretary Abigail Jackson said last week that President Trump’s One Big Beautiful Bill is securing our borders, strengthening our economy, and putting America First like never before. It will also save hardworking folks a ton of money.
