America’s poorest households will see their incomes drop by $1,200 per year, while the country’s wealthiest will see an additional $13,600 annually, according to the Congressional Budget Office’s analysis of the impacts of President Donald Trump’s sweeping tax and domestic policy law.
The CBO’s updated distributional analysis provided more details on the effects of Trump’s hallmark legislative achievement that he signed into law in July. The law extended and made permanent certain tax cuts Congress passed during Trump’s first term, but significantly reduced federal spending on welfare programs like the Supplemental Nutrition Assistance Program and Medicaid.
Republicans claimed those provisions would not result in benefits cuts. The CBO’s analysis paints a very different reality.