WASHINGTON (AP) — A recent report from the Congressional Budget Office indicates that President Donald Trump’s tax and spending legislation will take a toll on the income of the poorest Americans while benefiting the wealthiest households.
According to the CBO, the bottom 10% of earners will see their annual income drop by about $1,200 due to cutbacks in programs like Medicaid and food assistance. In contrast, the wealthiest 10% will receive a boost of approximately $13,600 thanks to tax reductions. While most American families, including those in the middle class, will gain some additional income from these tax cuts, the most substantial advantages will be enjoyed by those at the top of the income scale.
This report was released while many legislators were out of Washington, focusing on communicating the bill’s impacts to their constituents. Pushed through Congress in July by Republicans and labeled “the big, beautiful bill” by Trump, the measure faced unified opposition from Democrats. They argued that the tax reductions and budget priorities would hurt essential government support programs and exacerbate the national debt.
“This truly benefits billionaires, but makes the poor and the working class in America worse off,” stated Rep. Brendan Boyle, the lead Democrat on the House Budget Committee, during an interview on MSNBC.
The legislation’s revised criteria for food assistance qualifications is anticipated to affect millions, according to the CBO. Approximately 2.4 million individuals may lose eligibility for the Supplemental Nutrition Assistance Program due to new work mandates. Additional restrictions on food and other forms of aid could lead to a further decrease in income for low-income individuals.
Already, more than 10 million Americans are expected to lose health insurance by 2034 due to changes to Medicaid under the law.
In response to the report, Rep. Jason Smith, who leads the House Ways and Means Committee, expressed his disagreement with the CBO’s evaluation methodology, echoing previous criticisms.
“CBO has a troubled track record of getting its estimates incorrect and, like Democrats, is biased in favor of more federal spending and higher taxes,” Smith said on social media. “Don’t buy it.”
Republicans have been 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.
