The U.S. Congressional Budget Office (CBO) has released its latest forecast on the budgetary and income distribution impacts of the tax reform bill dubbed “The Great Beautiful Bill,” approved on 22 May in the House of Representatives under President Donald Trump.
According to the CBO analysis, if the bill is enacted, average disposable income for U.S. households is expected to increase over the 2026–2034 period. However, this increase will not be evenly distributed across all income groups. Households in the lowest income bracket are projected to see a decrease in resources, while those in the middle and higher income brackets will experience income growth.
The analysis shows that the lowest 10% income group is expected to face an average annual decline of $1,589 (about 3.9%), whereas the highest 10% income group is projected to see an annual increase of $12,044, equivalent to roughly a 2.3% rise.
The CBO noted that the loss of resources among poorer households mainly stems from cuts to Medicaid and food assistance programs, while tax cuts drive income gains in the higher-income groups.
In a separate report, the CBO also forecasted that the bill would increase the federal budget deficit by $2.4 trillion through 2034.
The bill was passed in the House by a narrow margin of just one vote. Introduced by Republicans to implement the tax cuts promised during Trump’s election campaign, the bill passed with 215 votes in favour and 214 against, and has now been sent to the Senate.
The bill includes provisions to increase state and local tax deductions, eliminate taxes on tips and overtime pay, and extend the duration of tax cuts enacted in 2017.
Nine suspects have been formally arrested over last week’s gun attack near Israel’s consulate in Istanbul, judicial officials have said...
Hungary’s political landscape is entering a new phase after voters brought an end to the long rule of Prime Minister Viktor Orbán, wit...
The reopening of Azerbaijan’s embassy in Iran reflects the “special relationship” between the two countries, a regional expert ha...
U.S. President Donald Trump forcefully criticised Pope Leo XIV late on Sunday in an unusually direct attack on the leader of the global Catholic Ch...
Millions of people in Sudan are surviving on just one meal a day as the country’s worsening hunger crisis pushes communities closer to famine...
Nine suspects have been formally arrested over last week’s gun attack near Israel’s consulate in Istanbul, judicial officials have said. The assault left one attacker dead and two Turkish police officers lightly wounded.
Hungary’s political landscape is entering a new phase after voters brought an end to the long rule of Prime Minister Viktor Orbán, with analysts pointing to economic discontent and governing fatigue rather than a decisive ideological break.
The reopening of Azerbaijan’s embassy in Iran reflects the “special relationship” between the two countries, a regional expert has said.
U.S. President Donald Trump forcefully criticised Pope Leo XIV late on Sunday in an unusually direct attack on the leader of the global Catholic Church, triggering a backlash from religious leaders and believers worldwide.
Hungarians vote in elections on Sunday that could see the end of hard right nationalist Prime Minister Viktor Orbán’s more than 15 year rule. Opinion polls show Orbán’s Fidesz party trailing 45-year-old Péter Magyar’s centre-right opposition Tisza party.
U.S. and Iranian negotiators held their highest-level talks in half a century in Pakistan on Saturday in an effort to end their six-week war, as President Donald Trump said the U.S. military had begun the process of clearing the Strait of Hormuz.
At least 30 people were killed on Saturday in a stampede at Haiti’s Laferrière Citadel World Heritage Site, with authorities warning that the death toll could rise.
Israel has reprimanded Spain’s most senior diplomat in Tel Aviv after a giant effigy of Prime Minister Benjamin Netanyahu was blown up in a Spanish town.
Nine suspects were arrested on Saturday (11 April) in connection with a terror attack targeting a police post in Istanbul’s Beşiktaş district.
Nine suspects have been formally arrested over last week’s gun attack near Israel’s consulate in Istanbul, judicial officials have said. The assault left one attacker dead and two Turkish police officers lightly wounded.
The reopening of Azerbaijan’s embassy in Iran reflects the “special relationship” between the two countries, a regional expert has said.
Cement maker Lafarge was found guilty by a French court on Monday (13 April) of paying millions to jihadist groups, including ISIS, to keep a plant running during the Syrian civil war.
Afghanistan’s Foreign Ministry said on Sunday that talks with Pakistan had been positive, while Türkiye stressed the importance of stronger ties between Kabul and Islamabad.
South Korea is close to finalising an agreement to import crude oil from Kazakhstan, according to Industry Minister Kim Jung-kwan, as the country seeks to diversify its energy supplies amid disruptions in the Middle East, he said on Sunday, 12 April, according to Reuters.
You can download the AnewZ application from Play Store and the App Store.
What is your opinion on this topic?
Leave the first comment