The bulk of the financial benefits in the House Republican tax bill would flow to the wealthiest Americans, experts say.

The bulk of the financial benefits in the House Republican tax bill would flow to the wealthiest Americans, experts say.

A House Republican-backed tax bill, dubbed the "One Big Beautiful Bill Act," has garnered significant attention for its potential to funnel the bulk of its financial benefits to the wealthiest Americans, according to experts and economic analyses.

The bill, which aims to permanently extend individual income tax provisions from the 2017 Tax Cuts and Jobs Act, could deliver massive tax cuts to the top 10% of earners. Estimates suggest that the wealthiest Americans, including prominent figures like Elon Musk and Mark Zuckerberg, could see their fortunes swell by $3.1 trillion over the next decade [1]. This proposal comes at a time when wealth inequality in the United States is already at an all-time high.

The Congressional Budget Office (CBO) projects that while the bill would increase average household resources, the gains would be far from equal. The bottom 10% of earners could see a 4% decline in household resources by 2033, while the top 10% would enjoy a 2% increase [1]. This disparity is expected to exacerbate existing wealth inequality, a concern highlighted by Oxfam, which argues that the Republican proposal would further entrench wealth disparity [1].

The House version of the bill locks in nearly all the individual tax breaks from the 2017 law and offers temporary tax relief on tips and overtime. However, these benefits are offset by reductions to social safety net programs like Medicaid and SNAP (formerly known as food stamps), which could negatively impact lower-income households [2]. The CBO estimates that income for the bottom tenth of households would fall by 2% in 2027 and by 4% in 2033, while those in the top 10% would get an income boost of 4% in 2027 and 2% in 2033 [2].

The Yale Budget Lab analysis found a similar dynamic, with the bottom fifth of households seeing their annual incomes fall by about $800 in 2027, on average, while the top 20% would see theirs grow by $9,700, on average [2]. The top 1% would gain $63,000.

The bill's tax cuts disproportionately favor high earners due to valuable tax breaks tied to business income, state and local taxes, and the estate tax. These benefits are highly concentrated among the wealthiest Americans, with 60% of the bill's tax cuts going to the top 20% of households and more than a third going to those making $460,000 or more [2].

While more than eight in 10 households overall would get a tax cut in 2026 if the bill is enacted, lower earners may not benefit as much due to the structure of certain tax breaks. For instance, a tax break on tips would not benefit households without tax liability, as it is structured as a tax deduction [2].

The bill's impact on wealth inequality and social safety net programs is a contentious issue, with some economists arguing that it skews heavily toward the wealthy and compounds the regressive nature of recent tariff policies [2]. The legislation now heads to the Senate, where it may face further changes.

References:
[1] https://economictimes.indiatimes.com/news/international/global-trends/trumps-one-big-beautiful-bill-act-could-make-10-richest-americans-including-elon-musk-3-1-trillion-richer/articleshow/121316103.cms
[2] https://www.cnbc.com/2025/05/23/house-republican-big-beautiful-tax-bill-favors-the-rich.html