Who will benefit from President Trump’s “big and beautiful bill”?
The nation’s wealthy Americans will benefit from the Trump administration’s “big beautiful bills,” but the poorest will be left behind.
According to a new analysis by Congressional Budget Office, the law called “One Big Beautiful Bill” by President Donald Trump will increase the resources of middle-income and top earners at the expense of low-income Americans.
Over the 2026-2034 period, nonpartisan CBOs analyzed the combined effects of the House bill’s tax cuts and reductions on federal programs, including Medicaid and nutrition support. The mega bill is currently in the Senate. This is considering a change.
According to CBO, the bill’s profits have increased with incomes being lost by the lowest-class households. The agency compared the bill to current tax laws. This includes Trump’s 2017 Tax Cuts and Employment Act.
The current pending bill will extend the 2017 tax cut, add work requirements to Medicaid and Supplementary Nutrition Assistance Program (SNAP, or Food Stamp), give seniors additional tax credits to help offset Social Security taxes, and create a baby savings account, among other things.
Here’s how the CBO says the bill will affect Americans:
- People in the lowest income group lose around $1,600 in resources per year. This is around 3.9% of revenue primarily due to reductions in non-cash transfers such as Medicaid and SNAP. Many of this group pay little or no federal tax and thus benefit from tax cuts more than high-income groups.
- For middle-income households, resources will increase from $500 to $1,000, or 0.5% to 0.8% of forecast income.
- The top 10% of households see profits of around $12,000, or about 2.3% of their income, primarily due to tax cuts.
Medora Lee is a money, market and personal finance reporter for USA Today. mjlee@usatoday.com and Subscribe to our free daily money newsletter Personal finance tips and business news every Monday to Friday.