Trump law helps rich people even more than initially believed

[Samyarup Chowdhury]

Trump’s sweeping tax and spending package is set to deliver far more to high-income households than to the average American family. By: Aaron Schwartz – Pool via CNP / MEGA

President Donald Trump’s sweeping tax and spending package is set to deliver far more to high-income households than to the average American family, according to a new report from the nonpartisan Congressional Budget Office (CBO). Knewz.com has learned that the latest assessment shows the richest 10% of U.S. households could see significant annual gains from the law, while the poorest Americans are projected to lose ground.

Trump’s law ensures bigger gains for the rich​

The top 10% of earners will gain an average of $13,600 per year over the next decade under the One Big, Beautiful Bill. BY: MEGA

The CBO’s updated analysis estimates that the top 10% of earners will gain an average of $13,600 per year over the next decade under the One Big, Beautiful Bill. This figure is higher than the office’s projection in June, when it estimated yearly benefits at $12,000. With average market incomes of around $700,000, this top 10% is now positioned to secure the largest share of the bill’s benefits. The law, advanced by Republican lawmakers and signed by Trump on July 4, made permanent income-tax rates set in his first administration while preserving a range of tax breaks that tend to favor high earners. It is worth noting that the White House and Republican lawmakers have pushed back on the CBO’s assessment, claiming it underestimates economic growth generated by the law.

SALT deductions and business breaks​

The One Big, Beautiful Bill temporarily expanded the state and local tax (SALT) deduction. BY: MEGA

Another provision drawing criticism is the One Big, Beautiful Bill’s temporary expansion of the state and local tax (SALT) deduction, which quadrupled the cap to $40,000 and will rise further until 2029 before reverting to $10,000 in 2030. Analysts say the biggest winners of this are high-income taxpayers in expensive states. The deduction cap stands at $250,000 for single filers and $500,000 for married couples filing jointly. Trump’s law also preserved generous estate-tax exemptions and codified business write-offs for expenses and research. Republicans say these provisions encourage growth, but opponents argue they tilt the system toward corporations and wealthy households.

Middle class may receive some help from Trump’s law​

Middle-class households are expected to see some modest relief. BY: Unsplash

Middle-class households are expected to see some modest relief. The CBO found that families in this bracket could gain between $800 and $1,200 per year over the next decade, up slightly from earlier estimates of $500 to $1,000. Provisions like an expanded standard deduction, a boosted child tax credit and temporary deductions for tips and overtime pay are designed to provide those benefits. Republicans have pointed to these measures as evidence that the law supports everyday Americans. However, polling shows skepticism, as an AP-NORC survey reported that about 51% of respondents believe the bill helps the middle class, while two-thirds said it benefits the wealthy most.

Trump’s law spells setbacks for low-income households​

For the nation’s poorest households, the CBO projects financial losses due to cuts in social programs. BY: MEGA

For the nation’s poorest households, the CBO projects financial losses due to cuts in social programs. The lowest 10% of earners, with average market incomes of nearly $24,000, will lose about $1,200 annually, a smaller hit than the $1,600 initially forecast but still a measurable reduction. Key drivers of these losses include spending cuts and stricter eligibility rules for Medicaid and the Supplemental Nutrition Assistance Program. Estimates show that about 10 million more Americans could become uninsured within a decade, with 7.5 million of those losing coverage because of tighter Medicaid requirements. While Republicans argue the cuts are necessary to address “waste, fraud and abuse,” critics warn they will leave vulnerable families without critical support.

The post Trump law helps rich people even more than initially believed appeared first on Knewz.

Continue reading...

 

Join 𝕋𝕄𝕋 on Telegram
Channel PREVIEW: