GOP tax bill would cost poor Americans $1,600 a year and boost highest earners by $12,000, CBO says
WASHINGTON (AP) — The Republican tax bill approved by the U.S. House of Representatives would cost the poorest Americans roughly $1,600 a year while increasing the income of the wealthiest households by an average of $12,000 annually, according to a new analysis released Thursday by the Congressional Budget Office.
Middle-income households would see a boost of roughly $500 to $1,000 per year under Republican President Donald Trump's tax bill, the CBO found.
The cuts to the lowest-income households come from proposed cuts to social safety net programs including Medicaid and a food assistance program for lower-income people, known as Supplemental Nutrition and Assistance Program.
The bill also proposes expanding work requirements to receive food aid and new 'community engagement requirements' of at least 80 hours per month of work, education or service for able-bodied adults without dependents to receive Medicaid. Some proposed tax breaks would be temporary, including a tax break on tips and overtime, car loan interest and a $4,000 increase in the standard deduction for seniors.
Treasury Secretary Scott Bessent and other Republicans have sought to discredit the CBO's analyses of the bill and say that the U.S. could head toward economic catastrophe if the measure is not passed. GOP Idaho Sen. Mike Crapo said during a Senate Finance Committee hearing on Thursday that the tax bill "recognizes the solution to our debt crisis is not to tax Americans more, it is to spend less.'
'The legislation recognizes that extending proven tax reform is critical for working families," he said.
Administration officials have said the the cost of the tax bill would be offset by tariff income. Recently, the CBO separately estimated that Trump's sweeping tariff plan would cut deficits by $2.8 trillion over a 10-year period while shrinking the economy, raising the inflation rate and reducing the purchasing power of households overall.
The CBO was established more than 50 years ago to provide objective, impartial analysis to support the budget process. It is required to produce a cost estimate for nearly every bill approved by a House or Senate committee and will weigh in earlier when asked to do so by lawmakers.
The office's analysis released Thursday considers Trump's 'One Big Beautiful Bill Act' in isolation, excluding the potential impact of the tariffs that Trump has imposed and paused on nations around the world.
Democratic Rep. Brendan Boyle of Pennsylvania, who requested the CBO analysis released Thursday, said in a statement that "this would be one of the largest transfers of wealth from working families to the ultra-rich in American history. It's shameful.'
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
New York Post
10 minutes ago
- New York Post
Bill Maher says Dems need to ‘do something' about ‘The View' after Whoopi Goldberg's Iran comments
'Real Time' host Bill Maher and Rep. Wesley Hunt, R-Texas, hammered Whoopi Goldberg and 'The View' on Friday after the co-host claimed that life for Black Americans is equivalent to women living under Iran's oppressive theocratic regime. Maher claimed that Democrats took a step 'back to sanity' after The New York Times took a more 'sensible liberal, not crazy woke' position on transgender issues. He then asserted that the second step Democrats should take is to 'do something about 'The View'' after Goldberg's comment comparing life for Black Americans to living under Iran's brutal regime. Goldberg sparked backlash during a heated argument with her fellow 'The View' co-host Alyssa Farah Griffin on Wednesday. Griffin elaborated on the many human rights violations perpetrated by the Ayatollah's regime in Iran, including executions of gay people and imprisonment of women who go outside with their hair uncovered. 'Let's not do that, because if we start with that, we have been known in this country to tie gay folks to the car. Listen, I'm sorry, they used to just keep hanging Black people,' Goldberg insisted as Griffin pushed back and said the situations weren't comparable. 3 Maher claimed that Democrats took a step 'back to sanity' after The New York Times took a more 'sensible liberal, not crazy woke' position on transgender issues. FOX News Hunt shot down Whoopi's assessment of life in America for Black people, noting the success he's found in the United States as a Black man. 'My district in the great state of Texas is actually a white majority district that President Trump would have won by 25 points. As I said, I'm a direct descendant of a slave, my great-great-grandfather, who was born on Rosedown Plantation. I am literally being judged not by the color of my skin but by the content of my character,' he explained. Hunt continued, adding, 'That's the progress because — like a lot of white people had to vote for me — a lot. So I don't ever want to hear Whoopi Goldberg's conversation about how it's worse to be black in America right now.' 3 Whoopi Goldberg and Alyssa Farah Griffin on life in the US and Iran The View, June 18, 2025. ABC 3 Hunt shot down Whoopi's assessment of life in America for Black people, noting the success he's found in the United States as a Black man. FOX News The Texas congressman also pointed out that his father, who grew up under Jim Crow, is now the father of a United States congressman in a white majority district who ran as a Republican. 'That's America,' Hunt stated. CNN Contributor Paul Begala brought up the fact that America has a holiday to celebrate the freedom of Black Americans from slavery — Juneteenth — but questioned why President Donald Trump 'doesn't want to honor' the occasion. 'I don't want it,' Hunt replied. 'I don't want Black History Month. I don't want all these days to make everybody feel special. I'm an '80s baby. Everybody's too sensitive anyway. We're all Americans anyway.'
Yahoo
13 minutes ago
- Yahoo
Podcast Bro Theo Von Questions How 'America First' Trump Really Is Amid Potential Iran War
Popular podcast host Theo Von joined Democratic Rep. Ro Khanna (Calif.) Friday in taking a hard stance against potential U.S. involvement in the Israel-Iran conflict. Khanna appeared on Von's podcast 'This Past Weekend' to discuss several topics, from foreign affairs to AI. At one point in the segment, Khanna promoted the War Powers Resolution, a bipartisan bill he introduced with Republican Rep. Thomas Massie (Ky.) aimed at prohibiting U.S. armed forces from unauthorized hostilities in Iran. During his discussion with Von, Khanna noted several people in MAGA's base who have been vocal about the U.S. not going to war with Iran, including Tucker Carlson and Rep. Marjorie Taylor Greene (Ga.). Von agreed with the two conservatives, stating, 'this is a horrible idea.' 'Yeah, people say, 'Well, you don't know a ton about the Middle East.' Like, that's fine. I don't want people I know, my friends, getting called up. I don't want the children of my friends getting called over to die,' Von said. 'I don't even understand how it's an option.' Von, who had Donald Trump on his podcast last year, helped the president reach younger male voters during the 2024 presidential election. Khanna remarked on the influence of Von's interview with Trump, stating the podcaster made the president 'the most human that I've actually seen him,' after the two opened up about the president's brother, alcoholism and cocaine. Last month, Von performed a controversial comedy act at a military base in Qatar before Trump addressed U.S. and Qatari troops. The podcast host has seemingly gotten closer to the Trump family, even having dinner with Ivanka and her husband, Jared Kushner, after they attended his comedy show in Miami. Miami looked good on you @TheoVon ! Come back and visit us soon !😎 — Ivanka Trump (@IvankaTrump) May 14, 2025 Now, however, Von is beginning to question the 'America First' claims that Trump made during his campaign. When Khanna asked Von if he knew anyone who was supporting the idea of the U.S. going to war with Iran, Von responded, 'Nobody.' I asked @TheoVon if he knows anyone who says we should go to war with Nobody. I feel like it was supposed to be America first. — Ro Khanna (@RoKhanna) June 20, 2025 Von went on to tell Khanna that 'it feels like we are just working for Israel,' and that he believes a lot of Americans are beginning to feel 'disillusioned' by U.S. leaders. 'I felt like it was supposed to be America first, like, we're focusing on, like, 'What are we doing to get things back into America,' right? To like, increase like the purpose of being an American, to refill our hearts with blood and ... make us feel something again here, and make us be excited about being an American,' Von said. JD Vance Tells Theo Von Musk Made A 'Huge Mistake' Going After Trump Exclusive: Israel Seeks Swift Action On Iran, Sources Say, With A Split U.S. Administration Trump Says He Should've Gotten 5 Nobel Peace Prizes While Continuing To Weigh Iran Strikes
USA Today
17 minutes ago
- USA Today
Huckabee: State Department is evacuating Americans from Israel amid Iran conflict
US Ambassador to Israel Mike Huckabee also posted actions people can take to remain safe including learning the location of the nearest bomb shelters. The State Department has begun evacuating American citizens and permanent residents from Israel and the West Bank, U.S Ambassador to Israel Mike Huckabee announced on social media as the Israel-Iran war enters a second week. 'The Department of State has begun assisted departure flights from Israel,' Huckabee wrote in a post on X on June 21 asking people seeking government assistance to fill out a form. Huckabee also posted actions people can take to remain safe including learning the location of the nearest bomb shelters, avoiding large gatherings and monitoring local media. The State Department did not immediately respond to questions asking about the number of Americans it expects to retrieve from Israel. The conflict started a week ago when Israel began conducting airstrikes against Iranian nuclear and military sites, primarily targeting uranium enrichment facilities to prevent Iran from developing nuclear weapons. The two countries have been engaged in aerial strikes while President Donald Trump is mulling over the possibility of U.S. involvement to help Israel destroy Iranian nuclear facilities. Hundreds of Americans have left Iran in the last week, according to an internal State Department cable seen by Reuters. Trump is expected meet his national security team on the evening of June 21 to discuss possible U.S. involvement in the conflict .
