Megabill would cost poorest households $1,600 a year, boost richest by $12K, CBO predicts

The lowest-income households in the United States would lose $1,600 a year in federal resources under the domestic-policy package House Republicans passed last month, Congress’ nonpartisan scorekeeper predicts.

At the same time, resources would be increased by $12,000 for the highest-income households under the legislation, according to the analysis the Congressional Budget Office published Thursday. For middle-income households, the bill is projected to increase resources by $500 to $1,000 a year, an increase of less than 1 percent of their income.

The distributional study of the bill reflects the impact of tax changes, including extensions of the 2017 Tax Cuts and Jobs Act and an increase in the state-and-local-tax deduction claimed by many upper-income households, as well as cuts to social safety-net programs such as Medicaid and food aid.

The loss of resources to the lowest earners in the U.S. amounts to almost 4 percent of total income for those households, while the increase for the highest earners would equal more than 2 percent of their income.

Tax cuts would be the biggest driver of gains for households set to benefit from the package Republicans are trying to clear this summer to deliver on President Donald Trump’s campaign agenda. On the other side of the equation, safety-net cuts would mostly drive the loss of benefits for the poorest.