Trump’s Tax Bill Helps the Rich, Hurts the Poor, and Adds Trillions to the Deficit
The “big, beautiful bill” has reaffirmed that a pledged golden age is really just a windfall for the über-wealthy.
The blush is off the rose, or, rather, the orange. The erstwhile “First Buddy” and born-again fiscal hawk Elon Musk recently said he was “disappointed” by Donald Trump’s spendthrift budget currently under debate in the US Senate. Squeaking through the House of Representatives thanks to the capitulation of several Republican deficit hard-liners, this “big, beautiful bill” certainly increases the federal debt bigly—by nearly $4 trillion over the next decade.
Equally disappointed are those who have been busy burnishing Trump’s populist veneer. Steve Bannon had repeatedly promised higher taxes for millionaires, but he has confessed that he’s “very upset.” That’s because the bill would cut taxes by over $600 billion for the top 1 percent of wage-earners, also known as millionaires. It amounts to the largest upward transfer of wealth in American history.
Yet this double betrayal will do nothing to impede the sundry Maga apparatchiks’ breathless support for their dear leader. Musk has already tweeted his gratitude to the president for the opportunity to lead Doge (that is, slash funding for cancer research). So this bill has once again proven Republicans’ willingness to relinquish their convictions as long as they can keep their grasp on power. And for Trump, it has reaffirmed that his pledged golden age is really just a windfall for the über-wealthy like him. Now there can be no mistaking that Republicans’ governing philosophy is neither conservatism nor populism but unabashed hypocrisy.
Expecting the self-proclaimed King of Debt to balance the budget—or hoping workers would be protected by the billionaire whose personal motto is “You’re fired”—was always imaginative thinking at best. In his first term, Trump added $8 trillion to the national deficit. Even excluding Covid relief spending, that’s twice as much debt as Joe Biden racked up during his four years in the White House. Almost $2 trillion of that tab came from Trump’s vaunted tax cut, which delivered three times more wealth to the top 5 percent of wage earners than it did to the bottom 60 percent. Nor did its benefits trickle down, with incomes remaining flat for workers who earn less than $114,000.
Trump’s disingenuousness on the deficit continues a hallowed Republican tradition. All four Republican presidents since 1980 have increased the federal debt. By combining reckless militarism with rampant corporatism, George W Bush managed to balloon it by 1,204 percent. When Bush’s treasury secretary, Paul O’Neill, expressed concern about that spending, Dick Cheney, the then–vice president, reportedly retorted: “Deficits don’t matter.”
Except, of course, when a Democrat occupies the Oval Office. During his campaign for the US Senate in 2022, JD Vance derided Biden’s signature $1 trillion infrastructure package as a “huge mistake” that would waste money on “really crazy stuff.” Like improving almost 200,000 miles of roads and repairing over 11,000 bridges across the country.
Now, there can be no mistaking that Republicans’ governing philosophy is neither conservatism nor populism but unabashed hypocrisy.
Apparently less crazy, but certainly more callous, are the vertiginous cuts to the social safety net proposed in Trump’s current budget bill. Its $1 trillion evisceration of Medicaid and SNAP would leave 8 million Americans uninsured and potentially end food assistance for 11 million people, including 4 million children. When the Democratic Representative Ro Khanna introduced an amendment to maintain coverage for the 38 million kids who receive their healthcare through Medicaid, Republicans blocked it from even receiving a vote.
But for all the budget’s austerity, it also provides $20 billion in tax credits to establish a national school voucher program. And equally outrageous are its provisions that have nothing to do with the pecuniary, from easing regulations on gun silencers to hamstringing the power of courts to enforce injunctions.
Perhaps most breathtaking of all, though, is how shamelessly the bill enriches the already mega-rich. In its first year, its tax breaks will grace Americans in the top 0.1 percent of the income bracket with an additional $400,000, while decreasing the earnings of people in the bottom 25 percent by $1,000. In other words, those who can least afford it are financing relief for those who least need it.
When the 50 percent of working-class Americans who broke for Trump in last year’s election realize they voted for a pay cut, they might begin to feel a bit disillusioned with the crypto trader-in-chief. They might even feel pulled to the authentically populist vision outlined by the progressives Bernie Sanders and Alexandria Ocasio-Cortez on their nationwide Fighting Oligarchy Tour.
In the meantime, it is almost an inevitability that Republican senators will wring their hands before pressing the green button to vote “yea.” Josh Hawley has called the budget bill “morally wrong and politically suicidal,” criticism Trump has previously mocked as “grandstanding.” The insult contains a typically Trumpian flash of psychological insight, because Hawley and his colleagues will no doubt do exactly what their counterparts in the House have already done—cave.
Once Trump has scribbled his oversize signature on to the bill, his vision for the US will have become unmistakable. Try as they might, not even the spinmeisters at Fox News will be able to deny that he runs this country the way he ran his Atlantic City casinos, leading working Americans to financial ruin while he emerges all the richer for it.
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