CBO Reports Trump Tax Law Boosts Wealthy, Reduces Poorer Americans' Income

The Congressional Budget Office (CBO) reports that President Donald Trump's recent tax and spending legislation, dubbed the “One Big Beautiful Bill Act,” disproportionately benefits wealthy Americans while financially harming the poorest. According to the CBO, the bottom 10% of earners will lose about $1,200 annually, largely due to restrictions on Medicaid and food assistance programs, including new work requirements that will disqualify approximately 2.4 million people from the Supplemental Nutrition Assistance Program. In contrast, the top 10% of earners will gain an average increase of $13,600 from tax cuts and cash transfers. Democrats strongly oppose the law, warning it will increase the national debt and reduce vital aid for low-income Americans, with Rep. Brendan Boyle calling it a bill for billionaires that makes the poor poorer. Despite these criticisms, Republicans and the Trump administration argue that the tax cuts will spur economic growth and benefit middle-income households as well. The CBO also projects that more than 10 million Americans could lose health insurance by 2034 due to changes in Medicaid under the law.