Trump's Tax Law: Rich Get Richer, Poor Lose Out
New CBO report reveals stark income disparities from Trump's tax plan.
A new Congressional Budget Office (CBO) report reveals President Donald Trump’s tax and spending law will disproportionately benefit the wealthiest Americans while reducing income for the poorest. The nonpartisan analysis, released Monday, estimates the bottom 10% of earners will lose about $1,200 annually due to cuts in programs like Medicaid and food assistance, while the top 10% will gain an average of $13,600 from tax breaks.
The legislation, passed by Republicans in July and dubbed “the big, beautiful bill” by Trump, has sparked heated debate. While middle-income households may see modest income boosts, the CBO projects the richest Americans will reap the largest rewards. Democrats, who unanimously opposed the bill, warn it will exacerbate inequality and inflate the national debt.
“This bill is a windfall for billionaires, but it leaves working-class and low-income Americans worse off,” Rep. Brendan Boyle, top Democrat on the House Budget Committee, said on MSNBC.
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The CBO highlights that 2.4 million Americans will lose access to the Supplemental Nutrition Assistance Program due to new work requirements. Additional restrictions on food aid and other assistance will further strain low-income households. By 2034, over 10 million Americans are projected to lose health insurance due to Medicaid changes.
Republicans, now on a month-long congressional break, are promoting the bill’s tax cuts as a catalyst for economic growth. However, some, like Rep. Michael Flood, faced backlash at town halls, with crowds in places like Lincoln, Nebraska, chanting “Tax the rich!” in protest.
Despite the criticism, Trump remains steadfast. “President Trump’s One Big Beautiful Bill puts America First, delivering massive savings and strengthening our economy,” said White House deputy press secretary Abigail Jackson.
As lawmakers return to their districts, the CBO’s findings intensify the debate over the law’s impact on economic fairness and the future of government aid programs.
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