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Trump’s ‘Beautiful Bill’ Widens the Divide in D.C.

July 2, 2025

The House-passed "One Big Beautiful Bill," supported by President Trump and House Republicans, offers significant tax benefits to high-income earners while reducing support for safety net programs. According to simulations from the Penn Wharton Budget Model, wealthy Washington D.C. residents could receive tax savings of nearly $10,000-$12,000, while lower-income families gain minimal benefits or suffer net losses when factoring in program cuts. The legislation would slash Medicaid by over $900 billion and SNAP by nearly $300 billion over a decade, disproportionately impacting low-income communities.

Who is affected

  • High-income earners in D.C. and other high-tax jurisdictions
  • Low-income families, particularly those relying on Medicaid and SNAP benefits
  • Black and brown communities in specific D.C. ZIP codes (20019, 20020, and 20032) with high public benefit participation rates
  • Low-income single mothers with children
  • Married couples with children across various income brackets
  • Workers earning less than $160,000 per year who receive tips and overtime pay

What action is being taken

  • The House is passing the "One Big Beautiful Bill" with President Trump and Republican support
  • The Penn Wharton Budget Model is conducting simulations to analyze the bill's impacts on different income groups
  • The legislation is expanding child tax credits and raising the cap on state and local tax (SALT) deductions
  • The bill is extending 2017 tax cuts and expanding tax breaks for high-income earners
  • The legislation is eliminating taxes on tips and overtime for non-"highly compensated" workers

Why it matters

  • The bill creates significant financial disparities, with 70% of the benefits flowing to the top 10% of earners
  • Low-income families may experience net financial losses despite minor tax cuts when benefit reductions are factored in
  • The legislation adds $2.8 trillion to the national deficit according to the Congressional Budget Office and Penn Wharton analysts
  • By 2026, low-income Americans will see their income reduced by more than $800 annually on average, worsening to $1,500 annually by 2033
  • The bill effectively redistributes wealth from poor to rich Americans through its combination of tax cuts and benefit reductions

What's next

  • No explicit next steps stated in the article

Read full article from source: The Washington Informer

Trump’s ‘Beautiful Bill’ Widens the Divide in D.C.