Democratic leaders asked the nonpartisan, highly respected Congressional Budget Office to evaluate the consequences of the Trump tax plan. In brief, the bill would widen the gap between haves and have nots and would increase the number in poverty.

The Financial Times reported:

Donald Trump’s landmark tax bill would make the most prosperous Americans $12,000 richer each year, while wiping $1,600 off the disposable income of the nation’s poorest, Congress’s fiscal watchdog said on Thursday. 

Trump’s “one big beautiful bill” narrowly passed the House of Representatives last month, extending tax cuts introduced during the US president’s first term in the White House in 2017. 

The Congressional Budget Office said in a letter that the top 10 per cent of Americans by income would, on average, see their resources rise by $12,000 a year, or 2.3 per cent of their projected income, should Trump’s “one big beautiful bill” pass the Senate in broadly the same form that it passed the House. 

“The changes would not be evenly distributed among households,” said CBO director Phillip Swagel in the letter addressed to Democrat lawmakers Brendan Boyle and Hakeem Jeffries, who had requested the analysis. 

“The agency estimates that, in general, resources would decrease for households towards the bottom of the income distribution, whereas resources would increase for households in the middle and the top of the income distribution.”