Donald Trump doesn’t just love billionaires, he loves multimillionaires too
Summary
The article discusses how a large U.S. tax bill called the One Big Beautiful Bill Act (OBBBA) provided big tax cuts mostly benefiting wealthy business owners called "pass-through" businesses. These pass-through business owners, many of whom are millionaires, pay lower taxes on their profits compared to regular wage earners. This tax policy favors rich individuals and affects government revenue and social programs.Key Facts
- The OBBBA combined over $5 trillion in tax cuts with more than $1 trillion in cuts to food stamps and Medicaid.
- Pass-through businesses are a type of business where profits go directly to owners and they avoid paying the corporate income tax.
- About 95% of U.S. businesses are pass-throughs, employing half of all workers and generating over half the business income.
- A 20% tax deduction for pass-through income, made permanent by the OBBBA, will reduce the government budget by $820 billion over 10 years.
- More than half of pass-through income goes to the richest 1% of Americans, many of whom are millionaires.
- The top tax rate for pass-through business owners after deductions is about 29.6%, compared to 37% for regular wage earners.
- Political leaders supporting this tax policy have personal or financial ties to pass-through businesses or wealthy donors.
- Research shows there are about 4,000 millionaires for every billionaire, and their combined wealth is much larger, giving them strong political influence.
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