Summary
A study found that President Donald Trump's tax breaks, part of the "One Big Beautiful Bill," have led to higher taxes for the poorest people in nine states, while benefiting wealthy individuals with significant savings. These tax changes were originally intended to provide relief for all Americans but appear to favor higher-income households more.
Key Facts
- President Trump's "One Big Beautiful Bill" was signed into law on July 4, 2025.
- The bill included extensions of his 2017 tax cuts and increased deduction limits for state and local taxes.
- The poorest residents in nine states end up paying more in taxes due to these changes.
- The wealthiest individuals save over $10,000 annually on average from these tax changes.
- In Florida, the poorest 20% face an extra $150 per year in taxes, while the wealthiest save over $20,000.
- The study analyzed data from the Institute on Taxation and Economic Policy.
- Some states like Montana see large disparities, with the richest receiving tax breaks 2,194 times larger than the poorest.
- Poor households did see small savings in certain states like Minnesota and Washington.
