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4mo ago

GOP Tax Bill Advances, Favoring Wealthy and Cutting Aid to Low-Income Americans

The House Budget Committee narrowly approved the bill, which makes 2017 tax cuts permanent, increases the child tax credit, and slashes Medicaid and SNAP funding.

Sunlight shines on the U.S. Capitol as members of the House Budget Committee are set to meet in a rare Sunday night session to consider U.S. President Donald Trump's sweeping tax-cut bill, on Capitol Hill in Washington, D.C., U.S., May 18, 2025.
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Overview

  • The 'One Big Beautiful Bill' awaits a full House vote this week after passing the House Budget Committee with narrow support.
  • The legislation would make the 2017 tax cuts permanent, temporarily raise the child tax credit to $2,500, and exempt tips and overtime from taxation.
  • Nonpartisan analyses warn the bill disproportionately benefits high-income households, with the top 20% receiving 60% of tax cuts, while some low-income Americans face net losses due to program cuts.
  • To offset revenue losses, the bill includes significant spending cuts to Medicaid and SNAP, impacting over 71 million low-income Americans.
  • Experts estimate the bill would add $3–$5 trillion to the federal debt over the next decade, exacerbating fiscal challenges and prompting concerns about economic inequality.