The latest Republican proposal does not technically raise income tax rates on anyone making under $30,000. That’s the part they repeat. But here’s what they avoid. Medicaid is being slashed. Food assistance programs are getting gutted. These are not small trims. These are structural removals.
If you earn less than $10,000 a year, you could lose over $2,700 in government support. That is not a rounding error. That is the rent. That is the groceries. That is the medication your child needs. Gone. On paper, your tax rate didn’t change. But in the real world, your survival costs just exploded.
If you bring in between $20,000 and $30,000, you are not spared either. The average hit comes to around $400 per year. That might not sound like much to the people writing the bill, but for the people living it, that’s two utility bills. That’s gas for work. That’s a pair of shoes for your kid.
Now compare that to someone earning over $200,000. Under this bill, they’re expected to walk away with an extra $13,200. No reductions. No cuts. Just more. This is not reform. This is realignment. Upward.
What they are doing is simple. They’re extending Trump-era tax cuts for the wealthy while siphoning benefits from the bottom half of the population. They don’t call it a wealth transfer, but that’s exactly what it is. It is draining the p*or to fund a bonus for the rich.
And here’s the bitter truth. Inflation is still squeezing low-income Americans. Rent is climbing. Childcare is out of reach. Food prices continue to stretch paychecks to the breaking point. When the government pulls back on support at a time like this, it is not just negligent. It’s catastrophic.
There are no new taxes. There are no rate hikes. But the result is the same. You are left with less. And if this bill passes, millions who thought they were safe will find out just how far down the priority list they really are.
Sources:
https://natlawreview.com/article/summary-tax-proposals-leaked-document-detailing-policy-proposals
https://www.cnbc.com/2025/05/12/house-gop-tax-bill-salt-deduction.html
https://thehill.com/homenews/house/5296015-gop-tax-bill-salt-trump-priorities/