CBO Report: Trump’s Tax Law Primarily Aids the Wealthy, Leaves Lower-Income Americans with Less

WASHINGTON – According to a report from the nonpartisan Congressional Budget Office, President Donald Trump’s tax and spending law will reduce income for the poorest Americans while increasing it for the wealthiest.

The CBO projects that the bottom 10% of earners in America will experience an annual reduction of approximately $1,200 due to decreased access to government programs such as Medicaid and food assistance. Conversely, the wealthiest 10% will enjoy an increase of $13,600 in their earnings from tax cuts. Although overall American households, including those with middle incomes, will see a rise in income due to these tax cuts, the primary beneficiaries will be the top 10% of earners.

This CBO report was released as lawmakers are away from Washington, with many using the time to discuss the bill with voters. In July, Republicans pushed the legislation — referred to by Trump as “the big, beautiful bill” — through Congress. Democrats unanimously opposed it, citing concerns about its impact on crucial government aid programs and the increasing 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,” remarked Rep. Brendan Boyle, the leading Democrat on the House Budget Committee, during an interview on MSNBC on Monday.

The law’s changes to eligibility for government food assistance will impact millions, as noted by the CBO. Approximately 2.4 million individuals will no longer qualify for the Supplemental Nutrition Assistance Program due to new work requirements for many recipients. Besides, low-income Americans might face further income reductions due to additional restrictions on food aid and other assistance programs enforced by 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 are keen to promote the benefits of the legislation — claiming that the tax cuts will drive economic growth — during their monthlong summer break from Washington. However, those hosting townhalls in their districts often encounter strong opposition 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.