Employees remove signs after the press conference after passing tax and expenditure bills at the US Parliament DC on May 22, 2025.
Kevin Dietsch | Getty image
There is a distinct contrast between the high -income and low -income families in a huge legislative package house that passed on Thursday.
Most of the financial benefits in legislation – “one big beautiful bill.” Experts say it will flow to the richest Americans provided by tax cutting measures such as high -resolution employers, investors and homeowners, experts said.
But low -income earners will get worse, they said. This is because the Republican Party partially offset these tax reductions. Estimated It is about $ 4 trillion over a decrease in social safety net programs such as Medicaid and supplementary nutrition support programs or previously known as food stam Pro known SNAPs.
The tax and expenditure package can now face additional changes to the Senate.
‘It is quite distorted towards the rich’
Parliamentary budget office, non -party federal scorekeeper, calculation The lower 10% of households’ income will decrease by 2% in 2027 and 4% in 2033, down 4% due to changes in the bill.
In contrast, the top 10%of people will get income from legislation. There are 4%in 2027 and 2%in 2033, the CBO said.
Yale Budget Laboratory analyze I found a similar mechanics.
Yale estimates that 20% of households with less than $ 14,000 a year (less than $ 14,000 per year) will fall about $ 800 in 2027 on average.
The top 20%, which earns more than $ 128,000 a year, will increase an average of $ 9,700 by 2027. The top 1%will get $ 63,000.
Yale and CBO analysis do not explain the last instant change of the House of Representatives, including strict work requirements for Medicaid.
Ernie Tedeschi, the economic director of Yale Budget Lab, said, “It is greatly distorted to the rich.”
The law is as follows Regression Economists said economists in the Trump administration’s recent tariff policy.
“If we have integrated the increase in tariffs, it will be more distorted for the lower and working class families.
Most tax reductions in the bill are the highest level of furniture.
Experts said the House of Representatives has several ways to be the richest Americans.
Among them, there are more valuable tax reductions related to business income, state and local taxes and real estate taxes, experts said.
This tax is running unbalanced to high -borns, experts said. For example, the bottom 80% of income There will be no benefits According to the Tax Foundation, the House of Representatives suggests that the current $ 10,000 to $ 40,000 will be raised from $ 10,000.
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The tax bill includes a $ 1,000 baby bonus in the Trump Account.
The House of Representatives improves the maximum child tax deduction to $ 2,500.
Food stamps face ‘the largest cut in program history’
The bill also preserves the 37%high tax rate set by the 2017 tax reduction and job law, which expired at the end of the year.
It has maintained the tax reduction that investors can spread money into “opportunities” to protect capital gains from taxes.
Trump’s 2017 Tax Law created tax reductions to encourage investment in low -income areas designated by the state governor. Taxpayers with capital gains are “highly focused” among wealthy people. According to In the Tax Policy Center.
60%of the tax reduction in the bill will go to the top 20%of the households, and more than one -thirds will go to those who make more than $ 460,000. According to In the Tax Policy Center.
The analysis said, “The change between income groups is amazing.”
Why are many low -income people getting worse
In other words, if the bill is enacted, more than eight out of 10 households will receive tax exemptions in 2026, the Tax Policy Center said.
Low earners can benefit from higher standard deductions and temporary improved provisions. For example, child tax deductions and tax benefits are related to income and car loan interest, for example, experts said.
But some of these benefits may be as worthy of at first glance, experts said. For example, Tedch said about one -third of the tips of the worker who did not pay the federal income tax. They will not receive benefits from the proposed tax reduction for the tip. It is composed of tax deductions and does not benefit households without tax liability.
Meanwhile, low -income families that depend more on the federal safety net program will cut benefits related to Medicaid, SNAP and student loans and Affordable Care Act premiums, according to Kent Smelts, an economist and staff of Penn Whadon Budget Model.
For example, the House of Representatives imposes business requirements for Medicaid and SNAP beneficiaries. According to parliamentary budget office analysis, the total federal spending on this program will drop to about $ 700 billion and $ 267 billion by 2034, respectively.
“It’s a low -income class and it’s a bit better unless you get SNAP, Medicaid or ACA premium support,” SMETTERS said.
Some high -income earners will pay more with taxes.
In a sense, it is not surprising that most tax benefits arise in wealthy people.
The United States has one of the most progressive tax systems in developed countries, SMETERS said.
He said the top 10%of the households paid about 70%of all federal taxes. According to Penn Whaton, such households will get about 65%of the total value of the law. analyze It was published on Monday.
According to the Tax Policy Center, the sub -set of high -outs (17% of the top 1% of households earning more than $ 1.1 million per year) will pay more expenses with taxes according to the Tax Policy Center.
“This is due to the ability of some pass -through companies to fully deduct state and local taxes and restrictions on all deductions to the highest bracket furniture.
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