A report from the Congressional Budget Office (CBO) indicates that a new tax bill approved by the U.S. House of Representatives might cause the poorest Americans to lose around $1,600 annually. Conversely, the richest families could see an average increase of $12,000 per year, while households with average incomes might experience a rise of about $500 to $1,000 yearly. The suggested cuts impacting low-income households are a result of reductions in social welfare programs like Medicaid and the Supplemental Nutrition Assistance Program. Furthermore, the bill proposes more stringent work requirements for food aid and new "community engagement requirements" for Medicaid. Some Republicans, including Treasury Secretary Scott Bessent, disagree with the CBO's conclusions, asserting that not passing the bill could lead to economic problems. However, the CBO has clarified that the expense of the tax bill would be covered by money from tariffs.