House Republican tax bill favors the rich — how much they stand to gain, and why

There’s a stark contrast between the effects on high earners and those on low-income households in a sprawling legislative package House Republicans passed Thursday.

There’s a stark contrast between the effects on high earners and those on low-income households in a sprawling legislative package House Republicans passed Thursday.

The bulk of the financial benefits in the legislation — called the “One Big Beautiful Bill Act” — would flow to the wealthiest Americans, courtesy of tax-cutting measures such as those for business owners, investors and homeowners in high-tax areas, experts said.

However, low earners would be worse off, they said. That’s largely because Republicans partially offset those tax cuts — estimated to cost about $4 trillion or more — with reductions to social safety net programs such as Medicaid and the Supplemental Nutrition Assistance Program, or SNAP, formerly known as food stamps.

The tax and spending package now heads to the Senate, where it may face further changes.

The Congressional Budget Office, a nonpartisan federal scorekeeper, estimates income for the bottom 10% of households would fall by 2% in 2027 and by 4% in 2033 as a result of the bill’s changes.