The benefits of the GOP’s tax legislation, titled “The Big Beautiful Bill” are heavily skewed toward the richest households in the U.S., while reducing resources for the poorest, according to multiple analyses of the Republican proposition that recently passed the House of Representatives.
That’s because while the bill expands on the 2017 Tax Cuts and Jobs Act and benefits some home owners, there are also significant cuts to social safety net programs like Medicaid and the Supplemental Nutrition Assistance Program (SNAP). As such, low earners could wind up worse off.
Meanwhile, the top 0.1%—those earning over $4.3 million—would have their taxes cut by more than $389,000 on average. The top 10% receives about 65% of the benefits of the legislation.
“On a dynamic lifetime basis, lower-income and all future households are worse off, despite positive economic effects,” the PWBM notes.
All together, those earning $460,000 or more would enjoy around one-third of total benefits from the bill, TPC finds.
The dramatic tax cuts would further inflate the national deficit, just after ratings firm Moody’s downgraded the U.S.’s credit due to unsustainable debt levels. That dynamic has further shaken the bond market, sending yields to their highest levels in months. If yields remain elevated, that could have implications across the economy, including lowering stock valuations and increasing mortgage interest rates.
