Trump Tax Law Mostly Benefits the Rich, With Caps Limiting Tip Earners' Relief
NBC News reports that while many Americans saw larger tax refunds under Trump’s tax law, the gains are heavily skewed toward the wealthy. Provisions like a broad expansion of the estate tax, 100% bonus depreciation for business purchases (including jets), and other cuts disproportionately favor high earners, with about 60% of savings going to households over $217,000. At the same time, cap on tip deductions (up to $25,000) and limits on overtime and Social Security deductions mean many middle- and lower-income workers see only modest relief or higher costs elsewhere. Some older adults benefit from a $6,000 deduction, but benefits vary by income and family structure, raising concerns about rising inequality even as the White House markets the law as “working family tax cuts.”
