Under the Senate version of the bill, high-income households could gain today but lose $5,700 over their lifetimes, while low-income households could lose as much as $22,000
President Donald Trump’s new tax plan may cut taxes in the short term, but a report from the Penn Wharton Budget Model warns it could hurt future generations, regardless of their income.
The bill makes Trump’s 2017 tax cuts permanent, expands the child tax credit, and introduces tax breaks for tips and overtime.
To offset the cost, it cuts funding for Medicaid and food stamps, which could leave 11.8 million uninsured by 2034, according to the Congressional Budget Office.
Under the Senate version of the bill, high-income households could gain today, but they may lose $5,700 over their lifetimes. Low-income families face even steeper losses, up to $22,000, due to reduced public benefits and lower wages.
The legislation includes $4.5 trillion in tax cuts, deep spending reductions, and major boosts to Trump’s immigration and defense agendas.
The Senate bill would add $3.3 trillion to the national debt over 10 years and shrink GDP by 4.6% over 30 years, compared to a 1.5% drop under the House bill.
According to critics, the “big, beautiful bill” shifts today’s gains onto tomorrow’s taxpayers.