CBO: The poor get a $1,200 income cut and the rich get a $13,600 boost from Trump’s tax law
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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.
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August 12, 2025
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Economy·TaxesCBO: The poor get a $1,200 income cut and the rich get a $13,600 boost from Trump’s tax lawBy Stephen GrovesBy The Associated PressBy Stephen GrovesBy The Associated Press President Donald Trump.AP Photo/Mark SchiefelbeinPresident Donald Trump’stax 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 grams 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 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 grams 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 gram 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
Already, more than 10 million Americans are expected to lose health insurance by 2034 due to changes to Medicaid under the law. ing release of the report, Rep
Jason Smith, the Republican chair of the House Ways and Means Committee, said he took issue with CBO’s methodology, repeating criticism he has made in the past. “CBO has a troubled track record of getting its estimates incorrect and, Democrats, is biased in favor of more federal spending and higher taxes,” Smith said on social media. “Don’t buy it.” Republicans have been eager to sell the upsides of the legislation — arguing that the tax cuts will spur economic growth — while they are on a monthlong summer break from Washington
But those who have held townhalls in their districts have often been greeted by an earful from voters and activists. “Tax the rich,” the crowd in Lincoln, Neb. chanted last week as Republican Rep
Michael Flood attempted to defend the bill
Still, Trump has been undeterred. “President Trump’s One Big Beautiful Bill is putting America First never before, dering huge savings for hardworking families, boosting our economy, and securing our borders,” said White House deputy press secretary Abigail Jackson in a statement last week
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