On Monday, a new piece of legislation introduced by House Republicans, which has gained the backing of President Donald Trump, has drawn sharp criticism from Democratic lawmakers and civil society groups. Lawmaker descriptions characterize the bill as primarily benefitting corporations and billionaires, rather than working-class families.

Overview of the Legislation

The 389-page bill proposes extensive tax cuts estimated to run into the trillions, suggesting that these incentives would heavily favor the ultra-wealthy and large corporations. This initiative aims to extend previous tax reductions implemented during Trump’s initial term, commonly referred to as the “GOP tax scam.”

Additional provisions in the proposal include the expansion of the estate tax exemption for the wealthy and the permanent enactment of substantial tax breaks for offshore corporate profits, a significant objective for the business sector.

Impact on Government Revenue and Social Programs

Critics are concerned that the legislation could lead to a drastic reduction in government revenue, with estimates suggesting a potential increase in the national debt, currently at $36.2 trillion, which amounts to approximately 127% of the U.S. gross domestic product. The total cost of the bill could exceed $5 trillion.

To partially mitigate the revenue loss, the legislation proposes significant cuts to social spending, particularly impacting vital programs like the Supplemental Nutrition Assistance Program (SNAP) and Medicaid. New work requirements and cost-sharing measures for Medicaid beneficiaries may put at risk the health coverage of millions of Americans if the bill proceeds as is.

Reactions from Lawmakers

Former U.S. Labor Secretary Robert Reich sharply criticized the proposed measure, labeling it as “trickle-down economics on steroids.”

Rep. Melanie Stansbury (D-N.M.) expressed strong opposition, stating, “This bill isn’t about balancing the budget—it’s about tax breaks for billionaires and kickbacks to corporate donors while silencing public voices.” Meanwhile, Rep. Brendan Boyle (D-Pa.), a senior member of the House Budget Committee, highlighted the stark contrast between the tax benefits for billionaires and cuts to Medicaid, which he deems as the “largest” cuts in the program’s history.

Rep. Richard Neal (D-Mass.), another vocal critic, emphasized the looming consequences of the legislation: “I’ll tell you what’s coming: handouts for billionaires, healthcare cuts for the people.”

Civil Society’s Perspective

Civil society organizations have echoed concerns raised by lawmakers. Ailen Arreaza, executive director of ParentsTogether Action, lamented the ongoing crisis faced by families across the nation, stating, “Instead of finding ways to offer some relief, Republicans in Congress are racing to pass a bill to hand massive new tax breaks to the ultra-wealthy.”

David Kass, executive director of Americans for Tax Fairness, also criticized the legislation for prioritizing billionaire interests at the expense of average citizens, asserting that “working and middle-class families—and future generations—shouldn’t have to pay higher prices simply to enrich billionaire elites and the politicians in their pocket.”

Potential Benefits Amid Criticism

Despite the criticism, the proposal does include some provisions that could benefit families, particularly through enhancements to the Child Tax Credit and the standard deduction. There are also temporary tax breaks related to overtime pay and certain expenses, along with a new tax-preferred savings account for young children, where the government would contribute an initial $1,000 for newborns between 2025-2028.

However, critics warn that many families may not benefit from these proposed changes, and certain provisions may actually exacerbate the economic divide, favoring wealthy interests over the needs of everyday families.