On May 20, the nonpartisan Congressional Budget Office (CBO) issued a report, showing how the trillions in tax cuts over the next 10 years in President Trump’s “Big, Beautiful Bill” would greatly benefit the wealthiest 10% of Americans, but changes to Medicaid and the Supplemental Nutrition Assistance Program (SNAP) would hurt the poorest 10% of American families. The CBO analysis estimates that the lowest 10% of income earners will undergo a 4% drop in household resources by 2033, while the wealthiest 10% of Americans will experience a 4% rise in wealth transfers by 2027. The CBO report also estimated that 7.6 million people would lose their Medicaid coverage over the next 10 years. The CBO report does not address changes to the Affordable Care Act, but other studies estimate that 8.6 million Americans will lose their health insurance. These drastic spending cuts are not designed to reduce the federal deficit. In fact, the report estimates that the proposed tax cuts will still cause the federal deficit to grow by $3.8 trillion from 2026 to 2034 The CBO report also states that this is a “preliminary analysis” which would be updated if the need arises.
The CBO states: “CBO estimates that if the legislation was enacted, U.S. households, on average, would see an increase in the resources provided to them by the government over the 2026-2034 period. The changes would not be evenly distributed among households. The agency estimates that in general, resources would decrease for households in the lowest decile (tenth) of the income distribution, whereas resources would increase for households in the highest decile.”
