Impact of the One Big Beautiful Bill on Household Incomes

SOURCE www.breitbart.com
The One Big Beautiful Bill passed by the House is projected to increase household resources, with the top decile gaining the most and the bottom decile seeing a decline due to reduced eligibility for Medicaid and food stamp benefits.

Key Points

  • Federal taxes and cash transfers would increase household resources by $3.1 trillion
  • Reductions in in-kind benefits would lower resources by $1 trillion
  • State governments expected to respond by cutting taxes or redirecting spending

Pros

  • Average household income projected to rise over 2026-2034 period
  • Top decile households gain approximately $12,000 per year
  • Middle-income households also see gains ranging from $500 to $1,000 annually

Cons

  • Bottom income decile expected to see a net decline in resources
  • Reductions in Medicaid and food stamp benefits contribute to losses for the bottom decile