How It Benefits the Rich
President Donald Trump’s sweeping new tax and spending bill, often dubbed the “One Big Beautiful Bill,” has been promoted with bold promises and dramatic claims. However, a closer look reveals that many of these assertions are misleading or outright false, and the bill’s structure delivers outsized benefits to the wealthiest Americans while imposing new burdens on lower-income groups.
Misleading Claims Promoted by Trump and Allies
1. “There’ll be a 68% tax increase if the bill isn’t passed.”
This claim is false. Nonpartisan analyses show that if the 2017 tax cuts were allowed to expire, the average tax increase would be about 7–12%, not 68%. The average increase would be around $2,100–$2,800 per household, with the largest percentage increases affecting higher earners, not the middle class or poor12.
2. “No tax on Social Security, tips, or overtime.”
This is exaggerated. The bill introduces temporary deductions for tips and overtime, but these are capped and phase out for higher earners. The promise to eliminate taxes on Social Security is not fully realized; only a temporary, limited deduction is provided, and most seniors will still pay taxes on their benefits132.
3. “Largest tax cut in history for working- and middle-class Americans.”
While the bill does provide some tax relief to middle- and working-class families, the largest benefits—both in dollar terms and as a share of income—go to the wealthiest Americans. The richest 1% receive an average net tax cut of $66,000, while the bottom 20% receive less than $200 on average45.
4. “No cuts to Medicaid or safety net programs.”
This is inaccurate. The bill includes deep cuts to Medicaid and the Supplemental Nutrition Assistance Program (SNAP), which are expected to result in millions losing health coverage and food assistance. These cuts are used to help offset the cost of the tax breaks1678.
How the Bill Benefits the Rich
Disproportionate Tax Cuts
| Income Group | Average Tax Cut (2026) | Share of Total Tax Cuts |
|---|---|---|
| Top 1% | $66,0004 | 45%4 |
| Top 0.1% | $255,6705 | — |
| Middle 20% | $1,8009 | 10%4 |
| Bottom 20% | $150–$20094 | <1%4 |
- Permanent vs. Temporary Relief: Tax cuts for the ultra-wealthy are made permanent, while deductions for tips and overtime (which benefit lower earners) are temporary and expire after a few years1011.
- Estate Tax and Business Breaks: The bill further reduces estate taxes and expands business-related tax breaks, which overwhelmingly benefit high-net-worth individuals and large corporations511.
Cuts to Social Programs
- Medicaid: The bill imposes new work requirements and funding cuts, projected to leave up to 17 million people without health insurance over the next decade1213.
- SNAP (Food Assistance): The legislation slashes funding by $186–$230 billion, tightens eligibility, and shifts costs to states, potentially forcing millions off the program714.
- Other Safety Nets: Reductions in food aid, health care, and other supports disproportionately harm low-income families, seniors, and people with disabilities1513.
Net Effect on Inequality
- Worsening Inequality: More than 70% of the net tax cuts go to the richest fifth of Americans, while the bottom 60% receive less than the top 1% alone4.
- Low-Income Households Lose Out: After accounting for lost benefits, many low-income families will be worse off, with some seeing a net loss in annual resources1611.
Conclusion
Despite claims of historic relief for working families, Trump’s bill delivers the largest gains to the wealthy and corporations, while funding these breaks with deep cuts to programs that support the most vulnerable Americans. The result is a policy that widens the gap between rich and poor, even as its proponents insist it does the opposite1045.
Sources:
- https://www.cnn.com/2025/06/28/politics/fact-check-trump-big-beautiful-bill
- https://www.spokesman.com/stories/2025/jul/01/fact-check-trump-and-republicans-mislead-on-tax-cu/
- https://www.yahoo.com/news/cnn-fact-checker-exposes-trump-131914038.html
- https://itep.org/megabill-is-on-its-way-to-trump-heres-what-its-tax-changes-mean-for-families-across-the-u-s/
- https://itep.org/house-tax-plan-trump-tax-cuts-by-the-numbers/
- https://apnews.com/article/big-beautiful-bill-trump-tax-cuts-3b525482be43fdf956366cebd84dcaac
- https://abcnews.go.com/GMA/News/trump-big-beautiful-bill-cuts-SNAP-affordable-food-benefits/story?id=123415329
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- https://www.nytimes.com/2025/07/01/us/politics/trump-bill-social-security-taxes.html
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