President Donald Trump’s sweeping new tax proposal is generating major buzz in Washington — and plenty of pushback. According to a fresh analysis from the nonpartisan Congressional Budget Office (CBO), the bill could blow a $2.4 trillion hole in the federal deficit over the next decade and leave nearly 11 million more Americans without health insurance by 2034.

The Numbers: Big Tax Cuts, Big Costs

The CBO’s report, released Wednesday, estimates that the legislation would slash taxes by $3.75 trillion over 10 years. But that relief comes at a steep price: a projected $2.4 trillion increase in the national deficit, even after nearly $1.3 trillion in federal spending cuts.

It also predicts that 10.9 million additional people would be uninsured by 2034, including 1.4 million undocumented immigrants currently covered under state-funded programs.

And that’s not all. The bill includes deep cuts to social safety net programs. Previous CBO estimates say about 4 million fewer people could receive food stamps each month due to proposed changes to the Supplemental Nutrition Assistance Program (SNAP).

Inside the “One Big Beautiful Bill”

Nicknamed the One Big Beautiful Bill Act — a nod to Trump’s own phrase — the 1,000-page package is the GOP’s top legislative priority. Here’s what’s inside:

• Extended and expanded tax breaks, including a new provision exempting tips from taxation
• $350 billion boost in spending on border security, deportations, and national security
• New work requirements for some adults up to age 65 on Medicaid and SNAP, beginning in 2026
• Repeal of green energy tax breaks introduced under President Joe Biden
• A $4 trillion increase to the U.S. debt ceiling, now sitting at $36 trillion

Republicans argue the tax cuts will fuel economic growth, but the CBO remains skeptical, especially based on past performance.

White House Hits Back at the CBO

In anticipation of the report, the White House launched a preemptive strike against the CBO’s credibility. Press secretary Karoline Leavitt dismissed the office’s projections as historically flawed, while Republican leaders echoed those doubts.

“They’ve always been wrong when it comes to forecasting economic growth,” said House Majority Leader Steve Scalise (R-La.), even suggesting the CBO might be obsolete. “It’s very valid to raise concerns,” he said.

Senate Majority Leader John Thune also took aim, arguing the CBO had underestimated revenue growth from Trump’s 2017 tax cuts — though the office attributes that miscalculation largely to inflation spikes during the COVID-19 pandemic.

Despite the criticism, the CBO remains a cornerstone of congressional budgeting. Established in 1974 to provide an impartial alternative to the White House’s budget office, it’s staffed by over 275 nonpartisan economists and analysts. Its current director, Phillip Swagel — a Republican appointee — was reappointed in 2023.

Democrats Cry Foul

Democrats are not mincing words. Rep. Brendan Boyle of Pennsylvania, the top Democrat on the House Budget Committee, slammed the bill as reckless and hypocritical.

“Republicans cry crocodile tears over the debt when Democrats are in charge — but explode it when they’re in power,” Boyle said. Citing Elon Musk’s own rebuke of the bill, he added, “This bill is a ‘disgusting abomination.’”

A Race Against the Clock

Trump is urging Congress to pass the bill before the Fourth of July — a patriotic deadline for what he hopes will be a signature legislative win. But with critics on both sides raising alarm bells about its potential economic and human impact, the road to passage looks bumpy.

Stay tuned — this debate is far from over.

Source: AP News  – Trump tax bill will add $2.4 trillion to the deficit and leave 10.9 million more uninsured, CBO says

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House Republicans have pushed through a massive tax and spending bill, championed by former President Donald Trump, after an intense all-night session and last-minute revisions. Nicknamed the “one big, beautiful bill,” this sweeping package promises deep tax cuts—mostly benefiting the wealthy—while slashing aid programs like Medicaid and food stamps, which millions of lower-income Americans rely on.

The Big Picture: Who Gains, Who Loses

At the heart of the bill is a controversial trade-off. Wealthier Americans will enjoy the lion’s share of tax relief, while low-income families face reduced support through major cuts to social safety nets.

• Top 20% of earners would receive 60% of the total tax cut, with the top 5%—those making over $460,000—getting more than a third of it.
• Middle-income households would see modest tax savings, averaging about $1,840.
• Lower-income Americans would see the smallest benefit: an average tax cut of just $160.

But those modest tax breaks may be wiped out by deeper spending cuts. The bill slashes nearly $1 trillion from federal aid programs over the next decade, with Medicaid losing about $700 billion and food assistance (SNAP) facing a $267 billion cut.

Deficit-Fueled Cuts and Expiring Promises

Despite the cuts, the bill is projected to add $3.1 trillion to the national debt over 10 years. That’s because it leans more heavily on tax reductions than spending restraint.

Many of the bill’s promises—including eliminating taxes on tips and increasing standard deductions for seniors—are set to expire after 2028. Critics say these temporary measures are designed to hide the true cost of the bill.

If Congress later makes all of these tax breaks permanent, it could balloon the deficit by an additional $5.1 trillion.

Who Feels It the Most?

Low-income Americans are expected to bear the brunt of the trade-offs:

• Those earning up to $17,000 annually could see their income drop by 14.6%, or about $820 next year, when both tax changes and benefit cuts are factored in.
• People earning between $17,000 and $51,000 would lose about $430 in annual income.
• In contrast, those earning over $174,000 would gain over $12,000, or a 2.6% boost in income.

“These cuts will hit not just adults, but also children, seniors, and people with disabilities,” said Kent Smetters, director of the Penn Wharton Budget Model. “For many, the loss of benefits far outweighs the modest tax relief.”

The Political Road Ahead

The bill now heads to the Senate, where it faces a tougher path. Though Republicans can bypass a Democratic filibuster using budget reconciliation, they can only afford to lose three votes.

• Some GOP senators want deeper cuts.
• Others are uneasy about Medicaid restrictions.
• One senator is pushing for a bigger child tax credit.

Plus, Senate rules may force the removal of any provisions unrelated to the federal budget.

If the Senate makes changes, the revised bill will return to the House for another vote. Trump and House Speaker Mike Johnson have proved effective in corralling support, but all eyes are now on new Senate Majority Leader John Thune to navigate the next phase.

A Debt Solution? Not Likely

Despite growing concerns over the $37 trillion national debt, lawmakers are still avoiding the hard conversations about long-term entitlement reform. The real drivers of federal spending—Medicare, Medicaid, and Social Security—remain largely untouched.

While this bill does trim Medicaid, it does so in tandem with generous tax breaks, resulting in more debt, not less. Meaningful changes to entitlement programs are considered politically dangerous, and both parties continue to sidestep the issue.

Bottom Line: Trump’s megabill may offer short-term relief for some taxpayers, but it does so at a high cost—both in terms of national debt and support for America’s most vulnerable. As the Senate takes up the legislation, the stakes couldn’t be higher for millions of Americans.

Source: CNN – How Trump’s megabill transfers wealth in the US

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To put it in perspective, the typical American worker earned just over $50,000 in 2023. It would take 726,000 years for 10 median-earning Americans to match the wealth gained by these 10 billionaires in a single year.

This enormous gap highlights just how extreme wealth inequality has become in the U.S. — and it’s happening right as Republicans debate a costly tax bill that experts warn could make the rich even richer while slashing nearly $1 trillion from vital social programs.

Elon Musk’s Wealth Soars by $186 Billion

Oxfam’s report tracked changes in net worth for the top 10 billionaires based on the Forbes Real-Time Billionaire List from April 2024 to April 2025.

Tesla CEO Elon Musk led the pack, adding a jaw-dropping $186.1 billion to his fortune — more than half of the total wealth increase for the group. Analysts have even predicted Musk is on track to become the world’s first trillionaire.

Other big winners include Meta’s Mark Zuckerberg and Walmart heirs Rob and Jim Walton, who each saw their net worth grow by roughly $35 to $39 billion. Meanwhile, some billionaires, like Google co-founders Larry Page and Sergey Brin, actually lost money during this period.

A Tax Cut That Could Deepen Inequality

Oxfam warns that a Republican tax bill, championed by former President Trump, could worsen this imbalance. The legislation would extend the 2017 Tax Cuts and Jobs Act, making most individual tax breaks permanent while temporarily cutting taxes on tips and overtime pay.

Nonpartisan analyses show this bill would boost economic output but disproportionately benefit the wealthy. The Congressional Budget Office (CBO) projects the top 10% of earners would see their household resources grow by 2%, while the bottom 10% would face a 4% drop by 2033.

According to the Penn Wharton Budget Model, the richest 10% would capture nearly two-thirds of the tax cut’s value, while the poorest 20% could lose over $1,000 annually due to cuts in Medicaid, food stamps, and other programs.

Kent Smetters, a professor at the Wharton School, highlighted that over 10 years, the top 10% could receive $3.1 trillion in tax breaks — even though this group already pays about 70% of federal income and payroll taxes.

Calls for a Wealth Tax Grow Louder

In response to skyrocketing billionaire wealth, some progressives have proposed a wealth tax on fortunes over $1 billion. Oxfam estimates that a 3% tax on these ultra-rich fortunes could raise $50 billion from the top 10 billionaires alone — enough to provide food assistance for 22.5 million people for a year.

However, taxing wealth presents significant challenges. Valuing complex assets can be difficult, and some legal experts question whether a wealth tax is constitutional.

Political Reactions: A Divided Nation

Senator Elizabeth Warren blasted the GOP bill as a “giveaway” to the rich, emphasizing that billionaires don’t need more breaks while working Americans struggle.

On the other side, the White House insists Trump’s policies helped reduce wealth inequality during his first term and that extending those tax cuts will restore prosperity for “Main Street.”

The Growing Debt Concern

All this comes amid growing worries about America’s soaring $36 trillion national debt. Moody’s recently downgraded the U.S. credit rating — a first since 1917 — citing rising government debt and interest payments.

Though the White House argues that the tax bill won’t increase the deficit, fiscal watchdogs disagree. The Committee for a Responsible Federal Budget warns the bill could add $3.3 trillion to the debt over a decade, or $5.2 trillion if temporary tax breaks become permanent.

The CBO estimates the cost could be even higher — $3.8 trillion added to the debt — risking inflation and higher interest rates.

Bottom Line

While America’s richest billionaires continue to amass mind-boggling fortunes, millions of ordinary Americans face shrinking resources and cuts to essential programs. As lawmakers debate the future of the tax code, the question remains: Will the wealth gap widen even further — or will policymakers find a way to create a fairer economy?

Source: CNN – The 10 richest Americans got $365 billion richer in the past year. Now they’re on the verge of a huge tax cut

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