Don't Be Fooled: Trump's Tax Cut Is a Handout for the Wealthy, Not Working Families

Trump's tax cuts promise middle-class relief but enrich the wealthy, deepening inequality.

Don't be fooled: Trump's tax cut is a handout for the wealthy, not working families FactArrow

Published: May 14, 2025

Written by Finn Duffy

A Misleading Promise

President Trump’s One Big, Beautiful Bill waves a tempting carrot before America’s middle class: lower taxes. The White House points to a Joint Committee on Taxation report, boasting that families earning between $30,000 and $80,000 could see their tax bills drop by 15 percent in 2027. For a moment, it feels like a victory, a chance for hardworking people to catch a break. But dig deeper, and the shine fades. This plan delivers far more to the wealthiest among us, while offering working families only a fleeting boost.

Fairness drives those of us who believe in a system where everyone contributes equitably. This proposal, however, betrays that principle. It impacts real people—think of the nurse working overtime, the factory worker pinching pennies, or the retiree stretching a fixed income. These Americans deserve policies that genuinely support them, not ones that prioritize the rich with permanent perks. Why accept a plan that hands the elite lasting wealth while tossing the rest of us temporary scraps?

The Joint Committee’s numbers reveal the flaw. Middle-income families might gain $1,300 to $1,500 annually, a meaningful sum. Yet these savings vanish after 2028, tied to temporary provisions. In contrast, the top 1 percent secure enduring benefits through measures like pass-through income breaks and estate tax exemptions. This imbalance undermines the idea of shared prosperity. How can we justify a system that rewards wealth over work?

This pattern echoes the 2017 Tax Cuts and Jobs Act, which dangled modest relief for the middle class while funneling massive gains to corporations and high earners. Advocates for economic equity have long highlighted how such policies widen the gap between rich and poor. Now, we face the same playbook, repackaged as populism. It’s a letdown for those who hoped for better.

At its core, this debate asks what kind of nation we want. Do we value opportunity for all, or do we accept a growing divide between the privileged and everyone else? The answer hinges on the policies we champion. This tax plan, with its skewed priorities, demands we take a stand.

The Data Tells the Truth

Examine the figures, and the reality sharpens. The Tax Policy Center projects that extending the 2017 tax cuts directs two-thirds of the benefits to the top 20 percent of earners, with nearly a quarter flowing to the top 1 percent. The bottom 20 percent gain less than 1 percent of the total. This structure favors the wealthy, not the middle class. Racial inequities also worsen, as white taxpayers receive a larger share of the benefits compared to Black and Hispanic households.

A progressive tax system should counter inequality, not deepen it. Over the last four decades, the top fifth of earners have increased their share of national income from 46 percent in 1979 to 55 percent in 2019. The Gini coefficient for after-tax income climbed from 0.36 in 1981 to 0.44 in 2021. Tax cuts like these have eroded the system’s ability to level the playing field, leaving working families to navigate a tougher economic landscape.

Proponents claim the plan fuels growth by boosting consumer spending. Yet history undermines The 2017 cuts fell short of their promised economic surge, with much of the windfall going to stock buybacks and executive payouts, not jobs. The Joint Committee estimates a $3.7 trillion cost over a decade, a burden that could strain funding for schools, healthcare, or infrastructure. Why trust a repeat of a failed experiment?

Advocates for working families propose a different path. Permanent expansions of the child tax credit, earned income tax credits, or investments in public services would deliver lasting support to those who need it most. These policies strengthen the economy by empowering everyone, not just the wealthy. Instead, we’re offered a plan that prioritizes short-term optics over enduring fairness.

A History of Widening Gaps

Tax policy has long shaped America’s economic divide. After World War II, high tax rates on top incomes helped build a robust middle class and reduce wealth concentration. Since the 1980s, however, cuts like Reagan’s 1981 reforms and the 2017 law have shifted the balance. The top marginal rate dropped from 70 percent in 1980 to 37 percent by 2018, while capital gains and estate taxes dwindled, driving wealth to the top. Today, the richest 10 percent hold 67 percent of total wealth, up from 61 percent in 1990.

This trend empowers the wealthy, granting them outsized influence over our economy and democracy. Meanwhile, middle-class wages stagnate, and racial wealth gaps endure. Solutions like wealth taxes or closing tax loopholes could restore equity, but they face resistance from those pushing more cuts. Why do we favor policies that entrench privilege over shared progress?

Partisan gridlock worsens the problem. Unlike the bipartisan tax reforms of the 1960s and 1980s, the 2017 law passed without Democratic support, reflecting deep divides over fairness and government’s role. Some frame these cuts as vital for recovery, but advocates for justice see them as siphoning resources from the many to enrich the few.

Demanding a Fairer Future

We face a critical choice. Trump’s tax plan offers middle-class families a brief respite but cements a legacy of inequality and debt. Better options exist. Policies like sustained tax credits, progressive rates, and investments in education and healthcare build an economy where everyone thrives. These aren’t just equitable—they’re practical, fostering resilience and opportunity.

Will we settle for a system that grants the wealthy permanent advantages while offering the rest of us fleeting gains? Or will we push for policies that reflect our commitment to fairness and inclusion? Working families don’t want charity; they want a system that values their contributions and doesn’t stack the deck against them.

This struggle defines our nation’s future. Let’s choose policies that uplift every American, not just the elite. Let’s create an economy where hard work leads to opportunity for all. That’s the America worth fighting for.