Trump's Tax and Spending Law: CBO Finds Poorest Lose $1,200, Richest Gain $13,600
The nonpartisan Congressional Budget Office (CBO) has released a new analysis showing how President Donald Trump’s tax and spending law affects different income groups in the United States. According to the report, the poorest Americans face reduced benefits, while wealthier households see significant gains.
CBO says Trump’s tax law cuts aid, costing poorest Americans $1,200 yearly, while richest households gain $13,600 from tax breaks.
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The CBO estimates that the bottom 10% of earners will lose around $1,200 annually due to restrictions on programs such as Medicaid and food assistance. By contrast, the richest 10% of Americans are projected to gain an average of $13,600 annually through tax cuts included in the legislation. Middle-income households will also see increases, though the largest financial advantages are concentrated at the top.
Republicans pushed the legislation through Congress in July, with no Democratic support. President Trump has repeatedly praised the law as “the big, beautiful bill,” promoting it as a measure that boosts the economy and prioritizes American families. Democrats, however, have argued that the tax cuts come at the expense of essential programs and risk deepening the national debt.
Rep. Brendan Boyle, the top Democrat on the House Budget Committee, criticized the legislation during an interview on MSNBC, saying that the measure benefits billionaires while leaving working-class and low-income Americans worse off.
The CBO report also highlights changes to eligibility for government food assistance. Approximately 2.4 million people will no longer qualify for the Supplemental Nutrition Assistance Program (SNAP) due to new work requirements. Other restrictions on federal aid could further reduce income for low-income households.
Health care access is another area affected by the law. More than 10 million Americans are projected to lose health insurance by 2034 as a result of Medicaid changes.
Republican leaders have dismissed aspects of the CBO’s analysis. Rep. Jason Smith, chair of the House Ways and Means Committee, criticized the agency’s methodology, saying it has a history of inaccurate estimates and a bias toward more spending and higher taxes.
Lawmakers have been using the summer recess to promote the bill to constituents. However, many Republicans have faced pushback from voters. At a town hall in Lincoln, Nebraska, demonstrators chanted “tax the rich” as Rep. Michael Flood defended the legislation.
Despite the criticism, Trump and his administration have continued to promote the law as a cornerstone of his economic agenda. White House deputy press secretary Abigail Jackson described the legislation as putting “America First like never before,” emphasizing its tax savings for families, economic growth, and border security provisions.
