President Donald Trump’s tax and spending law will give the richest Americans significant gains while leaving the poorest with less income, according to a Congressional Budget Office (CBO) report released Monday. The nonpartisan agency found that the bottom 10% of earners will lose about $1,200 a year due to cuts in programs like Medicaid and food assistance. Meanwhile, the top 10% will see gains of about $13,600 from tax cuts.
Overall, most American households will get more income from the legislation’s tax cuts, including middle-income earners. However, the biggest windfall will go to the top tier.
Political Divide Deepens
The CBO’s findings dropped while lawmakers were away from Washington. Republicans passed the law in July without a single Democratic vote. Trump called it “the big, beautiful bill.” Democrats warned that the tax cuts and spending priorities would drive up the national debt and slash vital government programs.
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“This is a big, beautiful bill for billionaires,” said Rep. Brendan Boyle, the top Democrat on the House Budget Committee, in an MSNBC interview. “But for the poor and working class in this country, you are actually poorer.”
Aid Cuts to Hit Millions
The CBO projects that 2.4 million people will lose eligibility for the Supplemental Nutrition Assistance Program due to new work requirements. Changes to Medicaid are expected to leave more than 10 million Americans without health insurance by 2034. These reductions will have lasting effects on low-income communities.
GOP Pushback
Rep. Jason Smith, Republican chair of the House Ways and Means Committee, challenged the CBO’s methods. He accused the agency of bias toward higher spending and taxes. “Don’t buy it,” he said on social media. Republicans continue to defend the law, arguing that tax cuts will boost economic growth.
Still, many GOP lawmakers have faced public anger at home. At a town hall in Lincoln, Nebraska, protesters chanted, “Tax the rich” as Rep. Michael Flood tried to promote the bill.
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Economic Growth vs. Economic Divide
The White House insists the law is delivering results. Deputy press secretary Abigail Jackson called it a win for hardworking families, the economy, and border security. But the CBO’s numbers suggest a growing gap between the richest and poorest.
This raises the question: can economic growth justify widening inequality, especially when it comes at the cost of essential aid programs?
High Stakes for 2025 Politics
The CBO report ensures the fight over Trump’s tax law will continue into the election season. For millions of Americans, the debate is not abstract. It will play out in grocery bills, medical care, and monthly budgets, shaping how voters judge both the policy and the politics behind it.
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