August 13, 2025
The rich are about to get richer and the poor are about to get poorer and no matter where you fall in between, you too are going to be impacted. That’s based on a new analysis of the Big Beautiful bill.
This chart – tells you everything you need to know. It is broken down by what are called income deciles – just a fancy word that just means separating the population by how much money you make every year in 10% increments. So – this bar representants the lowest 10% of income earners in this country all the way up to the highest 10% of income earners. And in this video I’m going to break down this chart so you can see where you land and how much this bill is going to either cost you or help you.
Before I do that — let me give you the context of why this is coming out now. The non-partisan Congressional Budget Office just released this report this week about the impacts to American households as a result of the big beautiful bill which as you know was passed last month with only Republican votes. This report was done at the request of house and senate democrats on the budget committee. They asked the CBO to combine the tax cuts included the bill with cuts to SNAP and Medicaid and the cuts to state resources— do the math and determine an estimate of how this whole bill will effect the revenue and spending ability of US households in every income bracket or income decile.
But – why is this important? Well the thing is the president keeps bragging about this bill saying it represents the largest tax cut in history because it extends his 2017 tax cuts and includes things like no tax on overtime and no tax on tips. But you never hear him talk about how this bill also making drastic cuts to Medicaid and snap. And Democrats only talk about the drastic cuts being made to Medicaid and snap but don’t talk about the tax cuts. So this report combines all of that and gives us a good estimate of how this is going to impact all of our wallets.
Ok – let’s get into the chart.
Before I tell you what income you need to have to fall into each of these bars or deciles –the first thing I want you to do is look at this graph. You don’t have to have a fancy statistic degree to clearly see that – one of these things is not like the others. Obviously it’s this. This spike represents the benefits the top 10% of income earners are going to get from the big beautiful bill. Clearly more than any other income decile. According to the CBO specifically because of the big beautiful bill this group is going to see on average about $13,600 more in their pocket every year. Why?
Mostly because the CBI found they’re going to get a huge tax break of almost $15,000 every year. Because they won’t have to pay those taxes that’s money that can stay in their pocket. But to off set that there’s a reduction in state and federal benefits that this group may be receiving which amounts to about $1600 so when you add all this up – this top 10% will see a net benefit of $13,622 every year over the next 8 years.
The next bar I want to call your attention to is this one. This represents the bottom 10% of income earners in this country. According to the CBO specifically because of this bill this group is going to see a about $1200 less in their pockets every year. Why?
Let’s look at this breakdown. Yes they are getting a little tax cut – they’ll pay about $119 less every year every year so we can add that to their income as a positive. But here’s the big problem – this group is going to lose almost $1500 in federal and state benefits like SNAP and healthcare – so that gets subtracted from of their annual income. That leaves this group with $1,214 less in their pocket every year over the next 8 years.
But the lowest decile isn’t the only group that is going to take a hit because of this bill. According to the CBO so is the second decile and the third decile is barely going to break even. The analysis found the second decile will see a loss of about $400 a year and the third decile will only see a gain of $23 dollars. Don’t spend it all in one place. All the other deciles will see increases in annual income and resources. The fourth will see almost $400 more per year, the fifth decile will see about $800 more, the 6th decile will see about $1200 more, the 7th decile will see almost $1700 more per year the 8th decile will see about $2200 more and the 9th decile will see about $3200 more.
Now – I know you’re thinking – where do I fall on this chart!??? Here you go. These are the numbers based on the projections the CBO made in January 2025 for what the decile incomes were supposed to look like after all the taxes and government benefits were taken into account. The lowest decile’s household annual income is $38,843, the second decile starts at $62,457, the third starts at $75,733… so on and so forth.
Read the CBO analysis here.
Look at the CBO charts here.
