Trump's tax bill benefits wealthy Americans by $12,000/year, hurts poor by $1,600/year.

Trump's tax bill benefits wealthy Americans by $12,000/year, hurts poor by $1,600/year.

Title: Trump's Tax Bill: Wealthy Gain $12,000, Poor Lose $1,600 Annually

A new tax bill championed by President Donald Trump is set to significantly impact the financial landscape of the United States. According to the Congressional Budget Office (CBO), the legislation would make the nation's wealthiest Americans $12,000 richer each year, while simultaneously reducing the disposable income of the poorest Americans by $1,600 annually [3].

The bill, known as "The One, Big, Beautiful Bill," was passed by the House of Representatives and is currently being considered by the Senate. It aims to deliver the largest tax relief for working families, farmers, and small businesses. The legislation promises substantial tax cuts for those making less than $30,000, with an estimated increase in take-home pay of $13,300 for a family of four [2].

However, the CBO's analysis reveals that the tax cuts would not be evenly distributed. Families in the top 10% of household income, earning an average of $692,000 per year, would see the largest gains, with average annual savings of about $12,000 or 2.3% [3]. Middle-income families would see more modest gains, while those at the bottom of the income ladder would be worse off, with an average loss of $1,600 each year [3].

Critics argue that the bill sacrifices long-term economic growth for short-term political gains. Unlike the 2017 tax law, which focused on a large corporate tax cut, this year's measure primarily benefits individuals through reduced taxes and bigger deductions. While the bill includes provisions to boost growth, such as deductions for investments in new technology or businesses, these would expire in a few years [4].

The bill's proponents maintain that it prioritizes working families and delivers the biggest wins for the working class. However, the shift from corporate to individual benefits complicates the budget math facing Senate Republicans. The Trump administration has disputed nonpartisan estimates that the tax law will add trillions to the debt, arguing that such projections do not account for the economic growth and additional revenue the legislation will generate [4].

In conclusion, Trump's tax bill presents a mixed bag of financial benefits and drawbacks. While it promises substantial tax relief for the working class, it also exacerbates income inequality by disproportionately benefiting the wealthy. The bill's long-term economic impact remains a subject of debate among economists and policymakers.

References:
[1] https://www.facebook.com/financialtimes/posts/breaking-news-donald-trumps-landmark-tax-bill-would-make-the-most-prosperous-ame/1107346421438734/
[2] https://waysandmeans.house.gov/2025/06/12/correcting-the-record-the-one-big-beautiful-bill-delivers-biggest-wins-for-the-working-class/
[3] https://www.npr.org/2025/06/12/nx-s1-5431638/republican-gop-mega-bill-tax-cuts-cbo
[4] https://www.washingtonpost.com/business/2025/06/09/trump-tax-bill-gop/