Trump's tax law to mostly benefit the rich, while leaving poorer Americans with less, CBO says

The Congressional Budget Office estimates the 10% of poorest Americans will lose about $1,200 a year, while the richest 10% will see their income increase by $13,600.

WASHINGTON — President Donald Trump’s tax and spending law will result in less income for the poorest Americans while sending money to the richest, the nonpartisan Congressional Budget Office reported Monday.

The CBO estimates that the 10% of poorest Americans will lose roughly $1,200 a year as they experience restrictions on government programs like Medicaid and food assistance, while the richest 10% of Americans will see their income increase by $13,600 from tax cuts. Overall, American households will see more income from the tax cuts in the legislation, including middle income households, but the largest benefit will go to the top 10% of earners.

The CBO’s report comes as lawmakers are away from Washington, many taking their messages about the bill to voters. Republicans muscled the legislation — deemed “the big, beautiful bill” by Trump — through Congress in July. Democrats all vehemently opposed the legislation, warning that its tax cuts and spending priorities would come at the expense of vital government aid programs and a ballooning national debt.

“This really is a big, beautiful bill for billionaires, but for the poor and the working class in this country, you are actually poorer,” said Rep. Brendan Boyle, the top Democrat on the House Budget Committee, in an MSNBC interview on Monday.

Changes to eligibility for government food assistance under the law will impact millions of Americans, the CBO found. Roughly 2.4 million people won’t be eligible for the Supplemental Nutrition Assistance Program under new work requirements for many recipients. Low-income Americans could also see their income reduced through further restrictions on food aid and other types of assistance included in the law.