President Donald Trump’s one big beautiful bill law, which transforms taxes and other federal policies, is actually big at 1,116 pages. However, its beauty is limited to those who benefit the most, the best maker, according to analysis from multiple sources.
The House is scheduled to vote for the bill Thursday. It will help us all households, but the profits of people at the lowest income levels will decrease due to spending cuts.
A preliminary analysis from May 20 by the Nonpartisan Congressional Budget Office shows that the benefits of the highest levels will increase.
The plan would make the 2017 tax cuts permanent from Trump’s first term. Some taxes will be reduced, but others will increase and spend changes.
USA Today looked for winners and losers if the bill passed. Here is an example of what we found.
High-income households will benefit most
Top 5 winners
High-income earners
According to an analysis by the Center for Non-Participation Tax Policy, the bill “will cut an average of around $2,800 in 2026.” More than two-thirds of the total cut will go to people with annual incomes of around $217,000 or more, the center said. Those who earn more than $1.1 million will earn nearly a quarter of the cut.
Family with children
The bill will increase the child tax credit from $500 to $2,500 to 2028. It then decreases to $2,000. However, an estimated 4.5 million children will be ineligible under the new requirement that both parents have a Social Security number, USA Today reported.
Children under the age of 8 are given $1,000 each for parents to open a “money account for growth and investment.”
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Car buyer
The bill also allows people to temporarily deduct up to $10,000 in car loan interest payments when purchasing American-made vehicles.
People who worked overtime
Overtime wages, which are treated like regular wages with federal and state income taxes, Social Security and Medicare withholding, will not be taxed if the bill is passed. According to a survey by the April tax law and Yale Budget Lab, if overtime allowances were not taxed, it could drop between $680 billion and $866 billion between 2025 and 2034.
Waiters and workers getting tips
If the bill passes, no hints will be taxed. According to the IRS, hints have historically been underreported. Non-reported tip revenue from non-integrated companies could reach $23 billion, according to a 2018 tax management financial inspector’s report.
The “No Tax on Tips” provision will end after 2028.
Top 5 losers
People under $50,000
Americans who make around $17,000 to $51,000 lose about $700. People with less than $17,000 earnings on average lose more than $1,000. Losses are primarily the result of reductions in support programs such as Medicaid, the health insurance market, supplementary nutrition support programs and student loans.
SNAP/Medicaid recipients
Initial estimates by the CBO show that the bill’s change to Medicaid could potentially result in as many as 7.6 million Americans losing their health insurance over the next decade. Approximately $698 billion will be reduced from the program.
The measure will cut $267 billion in federal spending on the Supplemental Nutrition Assistance Program, known as SNAP or Food Stamps, the CBO said. It also places work requirements on people aged 55 to 64 who will benefit from a program that provides food aid to around 42 million Americans.
People with student loan debt
The student loan relief law enacted by President Joe Biden’s administration will be abolished. The measure cancelled a one-time debt of up to $20,000 for eligible federal student loan borrowers.
Higher federal deficits
According to the CBO, the bill’s provisions will increase the federal deficit by $3.8 trillion from 2026 to 2034, according to the CBO, which cited an extension of the 2017 tax law and changes to the tax system, including its income and expenditure.
Undocumented people
The bill will increase the fees for legal immigration. It charges a $1,000 fee on asylum requests and requires a $500 payment every six months for work approval, USA Today reported. Among other fees, immigrants will charge hundreds of dollars when appealing a court decision.
The bill would also discourage the state from using its own money to provide Medicaid compensation to undocumented children.
Contributor Riley Begins, Bailey Schultz, Lauren Villagran AMD Dan Morrison
Source USA Today Network Report and Research. Reuters; Tax Policy Centre. Penn Wharton of the University of Pennsylvania. It focuses on budget and policy priorities. Congressional Budget Bureau
