CBO Report on Trump's Tax Law Shows Inequality

• Trump's law leads to a decrease in income for poor Americans.
• 10% of the wealthiest receive the largest benefits from tax cuts.
• Changes in state assistance programs could affect millions of people.

Washington — Along with the unprecedented report from the Congressional Budget Office (CBO) dated September 11, 2025, President Donald Trump's tax and spending law results in a decrease in income for the poorest Americans, while simultaneously providing financial advantages to the wealthiest. The CBO estimates that the 10% of the poorest Americans will lose nearly $1,200 annually due to restrictions on state assistance programs, such as Medicaid and food assistance. At the same time, the wealthiest 10% of Americans gain an average income increase of $13,600 due to tax cuts.

The CBO report was published during the time of recess for lawmakers who are actively discussing the law with the elections in mind. Republicans, who pushed the law, referred to Trump’s "huge, beautiful tax plan," faced protests against the reduction of state assistance. Democrats believe that tax cuts and prioritizing spending negatively affect important assistance programs and lead to an increase in state debt.

Changes in eligibility conditions for food assistance could affect millions of people. Approximately 2.4 million individuals will be unable to receive assistance under the Supplemental Nutrition Assistance Program due to new work requirements. Furthermore, more than 10 million Americans could remain without health insurance by 2034 due to changes in Medicaid.

Republicans are trying to emphasize the positive aspects of the tax plan, asserting that tax cuts stimulate economic growth, but at local meetings, they often encounter unresolved election issues. In response to criticism, Representative Jayson Smith, head of the House Finance Committee, expressed doubts about the methodology of the CBO.

Tags: USA/Politics/Economy