US NEWS
US News

Here's why the Big Beautiful Bill would increase inequality, according to Nobel winning economists

Nobel laureates warn that deep cuts to Medicaid and food stamps could reshape inequality in America

This Budget Bill Could Cost You More Than You Think - And Raise the...
This Budget Bill Could Cost You More Than You Think - And Raise the National Debt by Trillions(AP Photo/Rod Lamkey, Jr.)LAPRESSE

A massive new budget bill is making its way through Congress - and some of the country's top economists are raising serious concerns about who it helps, who it hurts, and just how big the long-term cost could be.

Nicknamed the "Big Beautiful Bill" by ers, the legislation ed the House in late May with backing from President Trump. It promises tax cuts and reduced government spending. But six Nobel Prize-winning economists say it does the opposite for most Americans - and could end up making inequality worse while driving up the national debtby trillions.

The bill includes steep reductions to programs like Medicaid and SNAP (food stamps), which provide critical to low-income and elderly Americans. At the same time, it extends tax cuts from Trump's 2017 law, which disproportionately benefited high-income households and large corporations.

"This is an upward redistribution of income," warn economists

According to Daron Acemoglu (MIT), Joseph Stiglitz (Columbia), and others who signed the June 2 letter through the Economic Policy Institute, the bill's structure shifts resources from the bottom 40% of Americans to the wealthiest few - all while undercutting key health and food programs.

Medicaid is a central target. But as the economists point out, the program does far more than cover unemployed individuals. It funds long-term care for seniors, s state budgets, and helps rural hospitals stay open - especially in states that expanded Medicaid under the ACA. Cutting it puts all of that at risk.

And that's before you get to the price tag. The Committee for a Responsible Federal Budget projects the plan could add $3.1 trillion to the debt - or $5.3 trillion if tax breaks are made permanent. Even some Republicans, including Sen. Rand Paul, have voiced concerns.

Meanwhile, the White House argues that these tax cuts will drive investment and job growth. But recent history paints a different picture. The 2017 tax law didn't deliver significant wage gains, according to a Congressional Budget Office review.

With the Senate now weighing the bill, the outcome could reshape the country's economic trajectory - especially for those relying on the programs it aims to shrink.

US NewsDo you receive tips or overtime pay? Here's what the tax cut would mean in practice
Famous peopleDonald Trump pardons reality stars Todd and Julie Chrisley, convicted of fraud and tax evasion
Celebrity net worthTodd and Julie Chrisley Net Worth: How rich is the reality TV couple pardoned by Trump for fraud and tax evasion?