Trump's tax law will benefit the rich at the cost of the poor, CBO analysis finds
FILE-President Donald Trump, joined by Republican lawmakers, signs the One, Big Beautiful Bill Act into law during an Independence Day military family picnic on the South Lawn of the White House on July 04, 2025 in Washington, D.C. (Photo by Samuel C
The Congressional Budget Office released a new analysis revealing that President Donald Trump’s tax and spending legislation will result in less income for the poorest Americans while sending money to the richest.
CBO analysis explained
By the numbers:
The Congressional Budget Office is estimating that 10% of the poorest Americans will lose about $1,200 annually as they experience restrictions on government programs like Medicaid and food assistance.
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Meanwhile, the richest 10% of Americans will see their income soar by $13,600 from tax cuts. The Associated Press reported that American households will see more income from the tax cuts in the law, including middle income households, but the largest benefit will go to the top 10% of earners.
CBO talks Trump’s tax bill impacts on Medicare and food assistance programs
Why you should care:
Citing the CBO analysis, the Associated Press noted that changes to eligibility for government food assistance under President Donald Trump’s tax and spending legislation will impact millions of Americans.
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The CBO noted that over 2 million people won't be eligible for the Supplemental Nutrition Assistance Program under work requirements for many recipients. Low-income Americans potentially may see their income lowered through additional limitations on food aid and other types of assistance featured in the legislation.
Right now, over 10 million Americans are expected to lose health insurance by 2034 due to changes to Medicaid under the law, according to the AP.
The Source: Information for this story was provided by the Associated Press, which cites the Congressional Budget Office’s analysis of the Trump tax and spending bill. This story was reported from Washington, D.C.