President Trump’s One Big Beautiful Bill Act promises sweeping tax cuts, but Yale Budget Lab analysis shows most Americans will lose more from tariffs than they gain from tax relief. While the top 10% benefit, middle- and lower-income households face net losses due to rising costs and reduced safety net support.
Trump’s tariffs outweigh tax cuts
Tariffs function like a national sales tax, disproportionately impacting poorer Americans. Though tariffs may reduce the deficit by $4 trillion, the tax bill is projected to increase it by $4.1 trillion. Experts warn that both policies combined could deepen inequality and destabilize the fiscal system.
