The Republican tax bill approved by the U.S. House of Representatives would cost the poorest Americans roughly $1,600 a year while increasing the income of the wealthiest households by an average of $12,000 annually, according to a new analysis released Thursday by the Congressional Budget Office.

Middle-income households would see a boost of roughly $500 to $1,000 per year under Republican President Donald Trump’s tax bill, the CBO found.

The cuts to the lowest-income households come from proposed cuts to social safety net programs including Medicaid and a food assistance program for lower-income people, known as Supplemental Nutrition and Assistance Program.

The bill also proposes expanding work requirements to receive food aid and new “community engagement requirements” of at least 80 hours per month of work, education or service for able-bodied adults without dependents to receive Medicaid. Some proposed tax breaks would be temporary, including a tax break on tips and overtime, car loan interest and a $4,000 increase in the standard deduction for seniors.

Treasury Secretary Scott Bessent and other Republicans have sought to discredit the CBO’s analyses of the bill and say that the U.S. could head toward economic catastrophe if the measure is not passed. GOP Idaho Sen. Mike Crapo said during a Senate Finance Committee hearing on Thursday that the tax bill “recognizes the solution to our debt crisis is not to tax Americans more, it is to spend less.”

“The legislation recognizes that extending proven tax reform is critical for working families,” he said.

Administration officials have said the the cost of the tax bill would be offset by tariff income. Recently, the CBO separately estimated that Trump’s sweeping tariff plan would cut deficits by $2.8 trillion over a 10-year period while shrinking the economy, raising the inflation rate and reducing the purchasing power of households overall.

The CBO was established more than 50 years ago to provide objective, impartial analysis to support the budget process. It is required to produce a cost estimate for nearly every bill approved by a House or Senate committee and will weigh in earlier when asked to do so by lawmakers.

The office’s analysis released Thursday considers Trump’s “One Big Beautiful Bill Act” in isolation, excluding the potential impact of the tariffs that Trump has imposed and paused on nations around the world.

Democratic Rep. Brendan Boyle of Pennsylvania, who requested the CBO analysis released Thursday, said in a statement that “this would be one of the largest transfers of wealth from working families to the ultra-rich in American history. It’s shameful.”

This story was originally featured on Fortune.com

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WASHINGTON (AP) — Former U.S. Rep. Billy Long of Missouri was confirmed on Thursday to lead the Internal Revenue Service, giving the beleaguered agency he once sought to abolish a permanent commissioner after months of acting leaders and massive staffing cuts that have threatened to derail next year’s tax filing season.

The Senate confirmed Long on a 53-44 vote despite Democrats’ concerns about the Republican’s past work for a firm that pitched a fraud-ridden coronavirus pandemic-era tax break and about campaign contributions he received after President Donald Trump nominated him to serve as IRS commissioner.

While in Congress, where he served from 2011 to 2023, Long sponsored legislation to get rid of the IRS, the agency he is now tasked with leading. A former auctioneer, Long has no background in tax administration

Long will take over an IRS undergoing massive change, including layoffs and voluntary retirements of tens of thousands of workers and accusations that then-Trump adviser Elon Musk’s Department of Government Efficiency mishandled sensitive taxpayer data. Unions and advocacy organizations have sued to block DOGE’s access to the information.

The IRS was one of the highest-profile agencies still without a Senate-confirmed leader. Before Long’s confirmation, the IRS shuffled through four acting leaders, including one who resigned over a deal between the IRS and the Department of Homeland Security to share immigrants’ tax data with Immigration and Customs Enforcement and another whose appointment led to a fight between Musk and Treasury Secretary Scott Bessent.

After leaving Congress to mount an unsuccessful bid for the U.S. Senate, Long worked with a firm that distributed the pandemic-era employee retention tax credit. That tax credit program was eventually shut down after then-IRS Commissioner Daniel Werfel determined that it was fraudulent.

Democrats called for a criminal investigation into Long’s connections to other alleged tax credit loopholes. The lawmakers allege that firms connected to Long duped investors into spending millions of dollars to purchase fake tax credits.

Long appeared before the Senate Finance Committee last month and denied any wrongdoing related to his involvement in the tax credit scheme.

Ahead of the confirmation vote, Democratic Sen. Ron Wyden of Oregon, the ranking member of the Senate Finance Committee, sent a letter to White House chief of staff Susie Wiles blasting the requisite FBI background check conducted on Long as a political appointee as inadequate.

“These issues were not adequately investigated,” Wyden wrote. “In fact, the FBI’s investigation, a process dictated by the White House, seemed designed to avoid substantively addressing any of these concerning public reports. It’s almost as if the FBI is unable to read the newspaper.”

Democratic lawmakers have also written to Long and his associated firms detailing concerns with what they call unusually timed contributions made to Long’s defunct 2022 Senate campaign committee shortly after Trump nominated him.

The IRS faces an uncertain future under Long. Tax experts have voiced concerns that the 2026 filing season could be hampered by the departure of so many tax collection workers. In April, The Associated Press reported that the IRS planned to cut as many as 20,000 staffers — up to 25% of the workforce. An IRS representative on Thursday confirmed the IRS had shed about that many workers but said the cuts amounted to approximately the same number of IRS jobs added under the Biden administration.

The fate of the Direct File program, the free electronic tax return filing system developed during President Joe Biden’s Democratic administration, is also unclear. Republican lawmakers and commercial tax preparation companies had complained it was a waste of taxpayer money because free filing programs already exist, although they are hard to use. Long said during his confirmation hearing that it would be one of the first programs that come up for discussion if he were confirmed.

Long is not the only Trump appointee to support dismantling an agency he was assigned to manage.
Linda McMahon, the current education secretary, has repeatedly said she is trying to put herself out of a job by closing the federal department and transferring its work to the states. Rick Perry, Trump’s energy secretary during his first term, called for abolishing the Energy Department during his bid for the 2012 GOP presidential nomination.

This story was originally featured on Fortune.com

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The United States on Monday imposed sanctions on the two fugitive sons of incarcerated Mexican Sinaloa Cartel leader Joaquin “El Chapo” Guzman and announced a reward offer of up to $10 million each for information leading to the arrest or conviction of the men.

The U.S. Treasury Department announced sanctions on Archivaldo Ivan Guzman Salazar and Jesus Alfredo Guzman Salazar who are believed to be currently located in Mexico.

Guzman’s other sons — Joaquin Guzman Lopez and Ovidio Guzman Lopez — are currently incarcerated in the United States. In May, federal prosecutors announced they would not seek the death penalty for Joaquin Guzman Lopez if he’s convicted of multiple charges in Chicago.

Sanctions were also imposed on a faction of the Sinaloa cartel known as the “Chapitos,” or little Chapos, which has been identified as a main exporter of fentanyl to the U.S. as well as a regional network of Chapitos associates and businesses based in Mazatlan, Mexico, that allegedly engage in drug trafficking, extortion and money laundering.

According to federal prosecutors, El Chapo smuggled mountains of cocaine and other drugs into the United States over 25 years. He was convicted in 2019 on multiple conspiracy counts and sentenced to life in a U.S. prison.

“At the Department of the Treasury, we are executing on President Trump’s mandate to completely eliminate drug cartels and take on violent leaders like ‘El Chapo’s’ children,” Treasury Secretary Scott Bessent said in a statement.

The Sinaloa Cartel, through various incarnations, is Mexico’s oldest criminal group, dating to the 1970s. One of their most lucrative businesses in recent years has been the production of the synthetic opioid fentanyl, blamed for tens of thousands of overdose deaths each year in the U.S. The Trump administration in February labeled the Sinaloa cartel a foreign terrorist organizations.

This story was originally featured on Fortune.com

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