Money Coach Explains How Trump’s ‘Big Beautiful Bill’ Could Help (Or Hurt) Your Paycheck, Based On Your Income
The bill is projected to add $4 trillion to the deficit, paid for in part by tax increases on the poor.
Design: YourTango | Photo: noamgalai from Shutterstock Polling has shown that Donald Trump sailed to a second victory in November mainly on the basis of one issue alone: the economy. Now, his signature economic legislation, the so-called "Big Beautiful Bill," is on the verge of becoming law, but it doesn't seem to add up to his campaign promises of tax cuts for "workers" paid for by tariffs.
A money coach explained how Trump's 'Big Beautiful Bill' will affect your paycheck.
TikTok creator @MoneyCoachDave is one of many who have recently broken down how the Big Beautiful Bill will impact Americans' wallets. To do so, he broke down the University of Pennsylvania's Penn Wharton Budget Model analysis of the bill to determine the end results. And the short version is, it'll grow your paycheck if you're already rich. If not, prepare to pay more.
The lowest earners in America will see the largest tax increases under the Big Beautiful Bill.
To answer this question, Penn Wharton divided Americans into five basic income categories and tallied the tax cuts and spending cuts proposed in the bill to determine how much each income bracket will either save or pay in their tax bills.
And it seems the very lowest earners among us will not only pay more taxes each year, but will see their taxes go up more than any other income bracket in 2026, according to Penn's most recent analysis.
meshaphoto | Getty Images Signature
Their calculations show that those earning zero to $17,000 per year will see a tax increase of $94, which is a -13.6% change overall. The next bracket, those making $17,001 to $51,000, will see an overall increase of $580, a -1.3% change.
This is the opposite of what Trump promised to do throughout his campaign. At a North Carolina rally the day before the 2024 election, for example, he vowed that "my plan will massively cut taxes for workers and small businesses."
Top earners will see tax cuts, with the richest saving the most.
For those making $51,001 per year or more, Trump's plan offers better news. Those making between $51,001 and $93,000 a year will see a tax cut of $815 in 2026 for a positive 1.1% change.
If you're around or over the six-figure mark, it's even better news: Those making $93,000 to $174,000 per year will likely save $3,075 on their tax bill, and those making between $174,000 and $263,000 a year can look forward to more than $5,000 in savings.
Those making more than $263,000 will get even bigger cuts, of course, just like with Trump's 2017 tax bill during his first term, with millionaires getting six-figure cuts.
To say that these cuts are being financed by squeezing more money out of the poor is not an overstatement, especially because the bill also finances these tax cuts for rich people by cutting services like Medicaid and food assistance that many people making under $51,000 rely upon to survive.
The Big Beautiful Bill is also projected to add at least $1.5 trillion to the deficit.
So-called "fiscal responsibility" is a Republican article of faith, which makes the Big Beautiful Bill a bit hard to understand. The tax cuts it implements have been projected to cost some $4.6 trillion overall, with Trump's tariff plans projected to cover roughly $2-$3 trillion of that shortfall if all goes according to plan.
But so far, precisely nothing has gone according to plan with respect to Trump's tariffs. Even if it does from here on out, the Big Beautiful Bill will likely add $1.5 trillion to the national deficit. This is because, despite Trump's campaign promises that the tariffs will bring in "trillions of trillions of dollars to reduce our taxes and pay down our national debt," the tariffs will not generate enough money to close the gap.
Even Wall Street, which typically rallies at news about tax cuts, has reacted negatively to the Big Beautiful Bill, pulling back on its usually voracious appetite for U.S. debt securities because of the bill's likely impact on the deficit.
Which is a long-winded way of saying Wall Street no longer trusts the federal government to be able to pay its debts once the Big Beautiful Bill has made its mark, a situation that could have a major impact on the economy altogether.
John Sundholm is a writer, editor, and video personality with 20 years of experience in media and entertainment. He covers culture, mental health, and human interest topics.
