Summary
President Trump's administration extended tax breaks that mainly benefit wealthy Americans. The changes, part of a bill called "One Big Beautiful Bill," include permanent lower tax rates and deductions for high earners and business owners. Middle-income people may see some benefits, but the most help goes to those with high incomes or large estates.
Key Facts
- The tax changes were approved by Congress during President Trump's administration.
- Affluent Americans will continue to benefit from a reduced top tax rate of 37%.
- The bill makes permanent a 20% tax deduction for owners of pass-through businesses.
- A pass-through business lets the owner report business income on their personal tax return.
- Bonus depreciation allows businesses to deduct 100% of the cost of certain assets immediately.
- Middle-income taxpayers may see minor benefits, but high-income earners gain the most.
- The tax changes apply to individuals earning over $200,000 and couples earning over $250,000.
- The bill's provisions mostly favor individuals with high incomes, investments, or large estates.
