The policy of the Trump government is a historical transfer of national wealth and resources to the top 1%. The scope and the degree of this take of everyone to give to the very rich policy -making was unveiled in a new study by the Center for American Progress (CAP).
The combination of new rates announced by the Trump administration in 2025 and the new policy that has been implemented in the One Big Beautiful Bill Act (OBBBA) will ensure that the income of Americans after taxes and transfers in 2027 will decrease across the board by winning a win. Despite the attempts of some legislators to rebrush the bill as a ‘tax reduction in working families’, households with an average income will experience a net income decrease of 1.2 percent or $ 1,300 in 2027. In the meantime, the top 1 percent receives a net income increase of almost $ 5,000.
…
In 2027, the poorest 20 percent of American households will be worse for $ 160 due to the new policy in the OBBBA and the income of $ 1,490 will lose rates, for a net decrease of $ 1,650 or 3.4 percent of their income. (See Figure 1) At the same time, the middle 20 percent of American households, which have an average income of $ 109,000, will see that income falls by $ 1,300 after they have received a tax reduction (net expenditure reductions) of $ 950; But the enormous rates of the Trump government increase their costs by $ 2,250. New provisions in the OBBBA, on the other hand, give the top 1 percent an advantage of $ 17,800, which exceeds their average rates of $ 12,800 by $ 5,000.
The real impact on the portfolios of Americans who are not one percent is brutally becoming.
The Trump government rejects the findings of the investigation by claiming that the rates and tax cuts for the rich have unleashed a wave of job growth and prosperity, just like in Trump’s first term.
However, the first round of Trump of tax cuts for the rich does not unleash prosperity and growth.
The Center for budget and policy priorities showed that Trump’s first round of tax cuts actually reduced business investments and consumption. In general, economic growth only ran because of the increased government spending, which were eliminated in the second round of Trump’s tax reductions for the rich.
Rigorous research into some of the most important provisions of the law also shows the lack of evidence for the claims of the Trump government. Despite the promises of the Republicans, for example, that the special deduction of 20 percent for the income of the transit company would stimulate and create jobs, researchers have not found any evidence that the deduction significantly increased the investments, wages for non-owners or employment.
Similarly, although the Trump administration promised that the reduction of the business rate “very conservative” would lead to a boost of $ 4,000 in the family income, discovered an investigation by economists from the Mixed Tax Committee and the Federal Reserve Board that employees in the lower 90th percentile of their company saw “no change of their company. Moreover, the authors believe that the loss of income from the decrease in corporation tax income outweighs the output of the tax reduction.
When taxes are reduced for the rich and companies, the money remains at the top. There is no “drop effect” for everyone.
Trump’s economic policy has just begun and they are about to cause great damage to everyone in the American economy that is not already rich.
What do you think of the CAP study? Share your thoughts in the comments below.
