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Trump administration policies represent a historic transfer of wealth and national resources to the higher 1%. The scope and degree of this taking of all the others to give the very rich development of policies have been revealed in a new study by the Center for American Progress (CAP).
Caponde found:
The combination of new prices announced by the Trump administration in 2025 and new policies implemented in the One Big Beautiful Bill (OBBBA) law will ensure that American income after taxes and transfers decrease in all areas in 2027, compared to 2025. Indeed, only the higher 1% of American households will see an increase. Despite certain legislative attempts to rename the bill as “tax reduction on workers’ families”, intermediate income households will have a net drop of 1.2%, or $ 1,300, in 2027. During this time, the highest 1% will receive a net increase in net profit of almost $ 5,000.
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In 2027, the poorest 20% of American households will be $ 160 of worse due to new OBBA policies and will lose $ 1,490 in prices, for a net drop of $ 1,650, or 3.4% of their income. (See Figure 1) At the same time, the 20% means of American households, which have an average income of $ 109,000, will see that the income will decrease by $ 1,300 after receiving a lower tax (net of expenditure reductions) of $ 950; But the massive prices of the Trump administration increase their costs by $ 2,250. On the other hand, the new OBBA provisions offer 1% of the higher advantages of $ 17,800, which exceeds their average price costs of $ 5,000.
The real impact on the portfolios of Americans who are not percent will be brutal.
The Trump administration rejects the conclusions of the study by affirming that prices and tax reductions for the rich will trigger a wave of growth and job prosperity, as was in Trump’s first mandate.
However, the first series of Trump tax reductions for the rich has not triggered prosperity and growth.
The Center for Budget and Policy Priories revealed that the first series of Trump tax discounts in fact reduced the investment and consumption of companies. Overall, economic growth has only risen due to the increase in public spending, which was eliminated in the second round of Trump tax reductions for the rich.
The CFBPP wrote:
Rigorous research on some of the main provisions of the law also show the lack of evidence of the statements of the Trump administration. For example, despite the promises of the Republicans that the special 20% deduction for corporate income transfer would improve investments and create jobs, researchers found no evidence that the deduction considerably increased investments, wages for non-owners or employment.
Likewise, although the Trump administration has promised that the decrease in companies’ rates would lead to “very cautiously” an increase of $ 4,000 in household income, a study of economists from the joint tax committee and the Federal Reserve Board noted that workers in the 90th lower centile of the income scale of their business have seen “no change in profit”. In addition, the authors note that the loss of income against the drop in corporate tax revenue prevails far on any increase in the production of the drop in tax.
When taxes are reduced for rich and companies, money remains at the top. There is no “effects to fall” for everyone.
Trump’s economic policies are just beginning, and they are about to make significant damage to everyone in the American economy which is not already rich.
What do you think of the CAP study? Share your reflections in the comments below.