Tax cuts in House Republicans’ megabill would lead to increased assets for the richest Americans, while reducing them for the lowest-income households through cuts to federal spending on Medicaid and food aid, according to a new preliminary analysis from the Congressional Budget Office.
The analysis, requested by top Democrats, gives fuel to Democrats’ attacks on the bill that it would lead to gains for wealthy Americans while taking away benefits for lower-income people.
“This is what Republicans are fighting for — lining the pockets of their billionaire donors while children go hungry and families get kicked off their health care,” Rep. Brendan Boyle of Pennsylvania, the top Democrat on the House Budget Committee, said in a statement.
Republicans have defended the megabill, arguing it protects Medicaid for those who need it most and makes the program more sustainable, while averting tax hikes for millions of Americans and leading to substantial economic growth.
The analysis, which weighed the impact of the legislation’s tax, Medicaid and SNAP food aid policies and how they could influence states’ finances, found that household resources would fall by about 2 percent of income for the lowest-income 10 percent of households by 2027, and 4 percent by 2033. That’s largely due to changes to Medicaid and SNAP policy that would lead to nearly a trillion dollars less in federal spending on those programs.
But the top 10 percent of households would see their household resources rise 4 percent by 2027 and 2 percent in 2033, “mainly because of reductions in the taxes they owe,” CBO said.
House Republicans’ package has trillions in tax cuts, along with some targeted tax hikes intended to help offset some of the cost. It also would make major changes to Medicaid, including new work requirements and other policies that CBO has estimated would lead to millions losing coverage.
House leaders are pushing for a final vote on the bill as soon as Wednesday.
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