Money

Newsweek -   Trump’s signature spending bill, the “One Big Beautiful Bill,” was passed with no Democratic support after extensive back-and-forth and signed into law by the president on July 4, 2025. Among other measures, it extended Trump’s 2017 tax cuts, lowering taxes for corporations and for individuals across most income brackets, eliminated federal taxes on overtime and tips and increased the deduction limit for state and local taxes (SALT).

While the president spoke of the bill as offering tax savings to all Americans, experts and critics warned that the richest Americans stood to benefit more from it than the poorest. 

According to estimates from the nonpartisan Congressional Budget Office (CBO) and Joint Committee on Taxation (JCT), the bill is expected to cut taxes for the richest 10 percent of Americans by more than $14,700 per year per household and cut taxes for the richest 1 percent of Americans by more than $50,000 per year through 2035.

InvestorsObserves’ report, based on analysis by the Institute on Taxation and Economic Policy, found that the impact of the Trump administration’s OBBB is heavily tilted in favor of those already at the top. 

According to the company, the near-wealthy save over 2,000 times more than the poor thanks to the changes introduced under the megabudget bill. 

Just how much the richest Americans benefit from Trump’s tax cuts more than the poorest changes wildly from state to state. In Montana, the richest residents receive tax breaks 2,194 times larger than the poorest taxpayers, “enough to cover nearly a year of mortgage payments versus two gallons of milk,” InvestorsObserver wrote.