Donald Trump’s “One Big Beautiful Bill Act” will slash the household resources of the poorest Americans by about $1,600 while boosting the wealthiest households by roughly $12,000, the Congressional Budget Office said in a distributional analysis released Thursday.
What Happened: CBO analysts in their analysis released on Thursday found middle-income families would gain a more modest $500 to $1,000 a year, but the lowest decile would lose ground largely because the bill pares back Medicaid and Supplemental Nutrition Assistance Program benefits and adds 80-hour monthly “community-engagement” rules for able-bodied adults.
The package extends many 2017 tax cuts, creates temporary breaks on tips, overtime and car-loan interest, and raises the standard deduction for seniors, yet offsets part of the cost by shrinking safety-net programs.
Treasury Secretary Scott Bessent warned lawmakers on Thursday that failure to pass the measure could push the nation toward economic disaster, and Idaho Republican Sen. Mike Crapo (R-Idaho) argued “the solution to our debt crisis is not to tax Americans more, it is to spend less.” He goes on to say that extending “proven tax reform is critical for working families.”
Democrats counter that the bill shifts wealth upward. Rep. Brendan Boyle (D-PA-02), who requested the CBO score, called it “one of the largest transfers of wealth from working families to the ultra-rich in American history.”
Why It Matters: The CBO report excludes President Donald Trump’s sweeping tariff agenda, which a separate letter said would trim deficits by $2.8 trillion over a decade but slow growth and stoke inflation. CBO estimates the combined tax cuts and spending changes would still widen the deficit by about $2.4 trillion through 2035, even before higher interest costs are tallied.
Last week, Rep. Thomas Massie (R-Ky.) challenged Treasury Secretary Scott Bessent’s claim that failing to pass President Donald Trump’s “Big Beautiful Bill” would trigger a $4 trillion tax hike. Massie dismissed the warning and argued the real burden would come when the Federal Reserve “must monetize the debt to pay for the BBB,” essentially printing money to fund larger deficits.
Trump’s proposal is also drawing high-profile fire beyond Massie. Billionaire Elon Musk labeled the measure a “disgusting abomination,” while GOP Sens. Ron Johnson (R-Wis.) and Rand Paul (R-Ky.) joined other Republicans in warning it would fuel deficits and inflation. Former Treasury Secretary Lawrence Summers called the plan a path to “deadly, dangerous decline.”
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