'Trickle-down economics on steroids': Critics sound alarm on new Republican plan

House Democrats and civil society groups led condemnation of legislation introduced Monday by congressional Republicans and backed by President Donald Trump that one lawmaker said is "about tax breaks for billionaires and kickbacks to corporate donors" at the expense of working class families.

The 389-page bill includes trillions of dollars in tax cuts that would disproportionately benefit the ultra-wealthy and corporations, largely by extending Trump's first-term reductions in taxation mainly for top earners derided as the "GOP tax scam." The proposal also broadens the estate tax exemption for the superrich and makes permanent a massive tax break on offshore corporate profits, a top wish-list item for Big Business.

The proposal would reduce government revenue by trillions of dollars and swell the national debt—currently a staggering $36.2 trillion, or the equivalent of 127% of U.S. gross domestic product—and cost over $5 trillion.

The bill partially offsets the revenue loss by sharply slashing social spending, including on the Supplemental Nutrition Assistance Program (SNAP) and Medicaid. The legislation would impose work and cost-sharing requirements on many Medicaid beneficiaries and increase eligibility checks. Critics warn that millions of people would lose their health insurance coverage if the bill is passed in its current form.

Former Democratic U.S. Labor Secretary Robert Reich called the proposed legislation "trickle-down economics on steroids."

On the positive side, the popular Child Tax Credit would grow for many households under the proposal. So would the standard deduction. There would also be temporary tax breaks for overtime pay, car-loan interest, and tips. The proposal also establishes a new tax-preferred savings account for children younger than 8 years old under which the government would contribute the first $1,000 for kids born between 2025-28.

However, critics noted that millions of families would receive no benefit from the Child Tax Credit increase, wealthy business partnerships would get an even bigger passthrough deduction than in an earlier draft of the bill, and taxes on many tips and overtime work remain.

"This bill isn't about balancing the budget—it's about tax breaks for billionaires and kickbacks to corporate donors and billionaires, while silencing public voices," said Rep. Melanie Stansbury (D-N.M.). "We see the grift and we're calling it out."

Rep. Brendan Boyle (D-Pa.), the ranking member of the House Budget Committee, noted that "Trump loves to call his budget the 'big, beautiful bill.'"

"It is—for billionaires," he added. "While Trump's billionaire donors get trillions in tax cuts, working Americans get the largest Medicaid cuts in American history."

House Ways and Means Committee Ranking Member Rep. Richard Neal (D-Mass.) warned, "I'll tell you what's coming: handouts for billionaires, healthcare cuts for the people."

Civil society groups also sounded the alarm over the bill.

"Families across the country are struggling now more than ever to get food on the table, visit the doctor, and afford lifesaving medication," ParentsTogether Action executive director Ailen Arreaza said Monday. "But 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."

"Even worse? Their plan is to pay for it by ripping healthcare and nutrition aid away from millions," Arreaza added. "One thing is clear: Gutting Medicaid and SNAP to fund tax breaks for the rich is cruelty disguised as policy—and parents across the country will take note of how their representatives vote this week as evidence of who they're fighting for, their constituents or their wealthy donors."

David Kass, executive director of Americans for Tax Fairness, said in a statement that "the House GOP has revealed in broad daylight that their tax bill is a clear scam—one that hands out massive giveaways to their billionaire and corporate donors off the backs of their constituents with a price tag of over $5 trillion."

"The plan's massive cuts to vital programs like Medicaid and SNAP will drive up healthcare and food prices for millions of workers and families, while billionaires pocket the money and the national debt soars," Kass added. "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."