The new GOP tax-and-spending package, nicknamed the “One Big Beautiful Bill,” might sound good in theory—but the details tell a different story. A newly released analysis by the nonpartisan Congressional Budget Office (CBO) shows that this plan could strip away as much as $1,600 annually from the nation’s lowest-earning households. If you’re living paycheck to paycheck, this is not small change—it’s a major hit.
What is the CBO saying about the gop tax bill?
The CBO analysis, released June 12, warns of a bleak trade-off. While the top 10% of earners could gain $12,000 a year, the lowest-earning households would see their disposable income fall by about $1,600 a year—nearly 4% of their total earnings.
- Lowest 10%: −$1,600/year
- Middle-income: +$500 to +$1,000/year
- Top 10%: +$12,000/year
These losses stem from cuts to Medicaid and SNAP, along with stricter work requirements for benefits.
Who benefits the most from the bill?
The CBO is crystal clear: those at the top stand to gain the most.
- The top 10% of earners could see a boost of about $12,000 annually .
- In contrast, middle-class families might get a modest $500 to $1,000 boost.
The result: a huge hand-off of wealth from the poor toward the rich—several trillion dollars over the coming decade.
Why are low-income households losing out?
Here’s what is dragging down the budgets of struggling families:
- Deeper cuts to Medicaid and SNAP benefits.
- New requirements, like 80-hour monthly work or service mandates for Medicaid eligibility.
- Reduction or elimination of certain safety-net programs.
Those lost benefits far outweigh any small tax cuts these families might get—leaving them poorer under the plan.
What are critics saying about the bill?
Criticism is loud—and personal.
Rep. Brendan Boyle (D-PA), who requested the CBO analysis, blasted the legislation:
“This would be one of the largest transfers of wealth from working families to the ultra-rich in American history. It’s shameful.”
He went even further:
“Republicans are stealing hard‑earned money from working people to enrich billionaires.”
Increasingly worried healthcare providers also warned that cuts to Medicaid could devastate rural hospitals and leave millions more uninsured
What does the GOP say in response?
Republicans argue the plan is about smart budget discipline—shrinking government costs by cutting Medicaid waste and offsetting with tariff revenue and economic growth .
Treasury Secretary Scott Bessent and GOP Rep. Mike Crapo claim it is better to spend less and run leaner government, not raise taxes. The White House doubles down, saying:
“President Trump’s America First economic agenda unleashed historic job, wage, and economic growth for working‑class Americans in his first term, and this agenda will repeat the success in his second term.”
What could this bill do to your budget?
If you are at the bottom of the income ladder, expect to:
- Lose about $130 a month from your household budget
- Face cuts to essentials like healthcare and nutrition
- Take on a larger share of expenses as state and local services absorb reduced federal funding
Meanwhile, the wealthiest reap huge gains, widening economic inequality.
Can the senate fix the bill?
The proposal is now in the Senate, where some Republicans have expressed concern—particularly over cuts to healthcare and Medicaid. With a Senate majority at stake, tweaks are possible—but deep opposition remains over wealth redistribution through public policy.
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