A report from the nonpartisan Congressional Budget Office released Thursday morning suggests President Donald Trump’s budget reconciliation bill will negatively impact the nation’s lowest earners the most while benefitting the nation’s top earners.
Thursday’s CBO report doesn’t mince words, saying President Trump’s One Big Beautiful Bill will quote “decrease [resources] for households toward the bottom of the income distribution, whereas resources would increase for households in the middle and top.”
But Virginia-based fiscal analysis groups differ on their understanding of the bill.
Freddy Mejia with the left-leaning Commonwealth Institute for Fiscal Analysis said it will likely strip important social safety net benefits from those who need it most.
“Families that earn in the bottom 20 percent of incomes, making less than $31,000 a year will see an average tax cut of just $100," Mejia told Radio IQ. "While those with the highest incomes in Virginia, making $843,100 or more will see an average tax cut of $78,000.”
Mejia’s group released its own report last week slamming congressional Republicans for the cuts to programs and services TCI said the budget makes.
“Would you rather have health care or $100?" He asked. "The clear answer would be access to health coverage.”
But Steve Haner with the right leaning Thomas Jefferson Institute says some of the big cuts, including changes to Medicaid, are more popular than people think.
“This is adding a work requirement," Haner said. "I know they don't like it, and I know they're complaining that people will not be able to find jobs and they'll still lose their benefits, but that's what Congress is trying to do, and I think a lot of Americans think that's a good idea.”
But Haner’s not a fan of some of the tax changes, particularly the expansion of the state and local tax or SALT deduction. He said it benefits only the wealthy.
“I don’t think they need any help so I’m not happy with that aspect of the bill," he said. "I would have been happy with a bill that basically just kept the 2015 rules.”
Congress will continue to debate the bill over the summer though Trump has set a July 4th target for his signature.
This report, provided by Virginia Public Radio, was made possible with support from the Virginia Education Association.
