Wealthy gain $70,000 tax break, poorest Americans face tax hikes and benefit cuts

The latest tax and spending bill, dubbed the “Big Beautiful Bill”, has sparked outrage over its glaring disparities in benefits. While the wealthiest Americans stand to gain $70,000 in tax cuts, the average worker will receive a mere $1,700. This is not tax relief for the middle class. It is a windfall for the rich, leaving lower-income Americans behind.

The bill, passed by House Republicans, extends the 2017 Trump tax cuts, ensuring that high earners continue to benefit from reduced rates. Meanwhile, the poorest Americans will see their benefits slashed due to cuts in Medicaid and SNAP, the federal food assistance program. This legislation does not just fail to help struggling families. It actively makes their financial situation worse.

The Congressional Budget Office estimates that 7.6 million Americans will lose Medicaid coverage over the next decade due to new work requirements and stricter eligibility checks. SNAP recipients will also face tougher restrictions, with $300 billion in cuts shifting costs to individual states. These measures disproportionately harm those who rely on government assistance to survive.

The bill’s tax provisions overwhelmingly favor the wealthy. The top 1 percent of earners will see their incomes rise by 4 percent in 2027, while the bottom 10 percent will experience a 2 percent decline. By 2033, the gap widens further, with the richest gaining 2 percent and the poorest losing 4 percent. This is not economic growth. It is a redistribution of wealth to those who need it least.

Despite the backlash, the bill now moves to the Senate, where further changes may be made. Critics argue that the legislation compounds the effects of recent tariff hikes, which have already placed financial strain on lower-income households. If enacted, this bill will deepen economic inequality, rewarding the wealthy while punishing the poor.

I’ll be curious to see how Trump responds to this.

Elon’s right of course. The bill is garbage. pic.twitter.com/HIYBYZedlk

— QE Infinity (@StealthQE4) May 28, 2025