CBO: Lowest Earners to Lose $1,200 Annually Under OBBBA!

The nonpartisan Congressional Budget Office (CBO) has crunched the numbers regarding the distributional effects of the One Big Beautiful Bill Act (OBBBA). The CBO found that the lowest-income earners will lose an average of $1,200 in overall household resources annually. Other taxpayers will see increases, including families in the middle and top percentiles. The director of the CBO, Phillip Swagel, wrote in a letter to lawmakers that while households are expected to see an overall increase in resources through 2034, the changes from the OBBBA “will not be evenly distributed among households.” The CBO is forecasting a decrease “for households toward the bottom of the income distribution.”