As lawmakers get closer to the Republicans’ goal date to pass the “Big Beautiful Bill” budget legislation this Friday, experts are warning that it could essentially take from infants to fill older Americans’ bank accounts.
Analysis of the bill from the Penn Wharton Business model (as cited by CBS Money Watch) cost an infant born into a low-income family $14,100 over their lifetime, while a high-income 70-year-old stands to gain $120,000. It said the loss would come from factors such as “reduced social safety net benefits and lower wages resulting from slower economic growth driven by increased national debt and deficits,” while the older generation’s gain would be from tax cuts and other benefits.
Earlier this year, Maya MacGuineas, president of the Committee for a Responsible Federal Budget, shared a similar perspective with Audacy.
“This bill, as it’s currently structured, would blow up the national debt,” MacGuineas said.
MacGuineas explained that to implement the tax cuts, the bill essentially kicks costs down the road, leaving them for younger generations to deal with. She was also concerned about how much the bill would add to the national debt. As the nation spends more on debt payments, it has less to spend on programs that help keep the overall economy strong, MacGuineas said.
Penn Wharton’s study also showed that the “Big Beautiful Bill” could basically transfer wealth from younger generations to older generations. Its research also indicates that the bill would benefit wealthier Americans more than middle income or low-income Americans.
“The group’s projection assesses the impact of proposed tax cuts under the bill, as well as reductions in federal programs such as Medicaid and the Supplemental Nutrition Assistance Program, or SNAP, better known as food stamps,” said CBS News.
Kent Smetters, director of the Penn Wharton Budget Model, told CBS MoneyWatch that “nothing is free,” and that the bill is setting up younger people to be worse off in the future. He said this could be fueled by a combination of lower wages and higher costs, such as increased mortgage prices.
A report published earlier this month by the nonpartisan Congressional Budget Office also highlights concerns about the bill. It said the legislation would likely reduce the financial resources available to the lowest-earning 10% of U.S. households by $1,600 per year – almost 4% of their annual income – while the highest-earning 10% of households would see a gain of $12,000 per year in resources and middle-income households would see a gain of $500 to $1,000, per CBS.
According to the outlet, the White House took issue with both the Penn Wharton and CBO analyses of the bill. Lawmakers in the House passed the bill in May and now Senate Republicans are pushing for it to be passed before the July 4 holiday.
With little time left, Senate Republicans and Democrats were still at odds over the legislation this week.
“As anybody with two eyes, a calculator and a basic understanding of taxes already knew, Senate Republicans are covering up trillions of dollars’ worth of giveaways to corporations and the wealthy in their tax plan,” said a Tuesday statement from Senate Finance Committee Ranking Member Ron Wyden (D-Ore.) and Senate Democratic Leader Chuck Schumer (D-N.Y.).
Meanwhile, U.S. Senate Majority Leader John Thune (R-S.D.) said that the bill would be a “huge win for the American people” if it passes. He claimed that it would offer tax relief for working Americans, a commitment to energy dominance, modernization of the military and border security.
“I still think we get this done this weekend … There’s a ton of swirl, and like I said, the new stuff coming at us every day. But if we can get it across the floor in the Senate and back over to the House, … my hope would be that they could figure out a way to execute on passing it there and get it on the president’s desk,” Thune said.