A new analysis from the Congressional Budget Office shows that the top 10% of US earners will benefit most from tax and spending packages passed at home. Those at the bottom of the income ladder will get worse.
Saul Loeb/AFP via Getty Images
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Saul Loeb/AFP via Getty Images
The country’s highest paying workers will be the biggest winners of the massive Republican tax and spending bills, New analysis From the Congressional Budget Office.
Middle-income families will get worse for those at the bottom of the income ladder.
Nonpartisan CBOs have sought to predict the combined effects of the $3 trillion tax cuts included in the bill, as well as a reduction in government spending of around $1 trillion on programs such as Medicaid and food stamps. The bill, which President Trump strongly defended, passed the House last month and is now being considered by the Senate.
Tax cuts bring the biggest savings and more modest benefits to top earners for those with average income, the CBO found. For families with a yearly family of less than $55,000, government profit reductions usually outweigh tax savings and leave a net loss.
“Changes will not be evenly distributed among households,” CBO Director Philip Swagel wrote. Letter to lawmakers. “In general, household resources decrease towards the bottom of the income distribution, but household resources increase at the middle and upper income distribution.”
The biggest winners in the CBO analysis are families in the top 10% of household income, earning an average of $692,000 per year. On average, they will see a savings of around $12,000 or 2.3% a year.
Middle-income families earning between $86,000 and $107,000 have average annual savings of $500 to $1,000, or less than 1%. And families in Lang under the income ladder, which earns around $23,000 a year, achieve an average loss of $1,600, or 3.9% each year.
