The recently proposed “One Big Beautiful Bill Act” has sparked a passionate debate. Critics say it fails to adequately pay for the implementation, creates new burdens on lower-income households, and primarily benefits the wealthiest Americans. Lawmakers are just beginning to release the very specific details of the legislation. Equity There’s no doubt the economic benefits primarily accrue to high earners, posing a serious economic equity issue.
Supported by the provisions of this act, these tax-cutting measures focus on business owners, investors, and homeowners living in high-tax jurisdictions. The richest 20% of households—those making more than $128,000 per year—will get an average income increase of $9,700. The richest 1% is poised to benefit by more than 10 times that! In fact, over 37% of those tax cuts will go to people earning $460,000 or above.
Tax relief distribution is highly regressive. Even more puzzling, a staggering 60% of the net tax cuts from the “One Big Beautiful Bill Act” would go to this elite class. Perhaps most remarkably, members of the top 1%—those making at least $1.1 million—would experience an average gain of $63,000. This trend has become a manifestation of one of the oldest political trends—favoring wealthier households.
At the same time, the poorest fifth of income earners—those earning less than $14,000 a year—will be hit hard. By 2027, their yearly earnings are projected to decline by an average of nearly $800. This disparity alone underscores the regressive nature of these proposed changes.
As we have warned, the experts have told us that the top 10% of households already pay about 70% of all federal taxes. The “One Big Beautiful Bill Act” would double their pay. By 2027, they will experience a 4% increase, and in 2033 another 2%.
One of the most important aspects of this legislation is the preservation of a top tax rate at 37% that is still too high. This rate was first set by the Tax Cuts and Jobs Act of 2017. Additionally, the act calls to increase the State and Local Tax (SALT) deduction cap from $10,000 to $40,000. Further, domestic cost of service studies show that this measure will disproportionately benefit higher-income earners who are more likely to pay more in state and local taxes.
Not all households in the top income brackets will gain out the same way. A new analysis has found that only 17% of the top 1% would actually have tax liabilities increase due to these changes. This change will most likely affect their strategies for raising revenue.
Ernie Tedeschi, an economist known for his work on fiscal policy, commented on the implications of this legislation:
“It skews pretty heavily toward the wealthy.”
He further elaborated on the potential exacerbation of inequality under this bill:
“If you incorporated the hike in tariffs, this would be even more skewed against lower- and working-class families.”
The financial implications extend beyond tax adjustments. The “One Big Beautiful Bill Act” pays for the bulk of its tax cuts by slashing social safety net programs that our communities rely on. This makes federal spending on Medicaid poised to lose around $700 billion. At the same time, funding for the Supplemental Nutrition Assistance Program (SNAP) is expected to drop by about $267 billion over the next 2034. This would cause great harm for low-income families who depend on these basic services.
The puzzling reversal — where higher income people gained far more benefits than lower income counterparts – has set off shock waves among analysts. One expert remarked:
“The variation among income groups is striking.”
This legislation has ignited a conversation about priorities in fiscal policy and economic support structures in America. Critics argue that prioritizing tax relief for high earners while cutting back on vital social programs could deepen existing inequalities and undermine economic stability for working-class families.
As negotiations in Congress continue to escalate over the proposed “One Big Beautiful Bill Act,” legislators are under increasing pressure. They need to address these disparities and proactively think bigger to create a more equitable tax code. What happens during these deliberations will have a profound impact on the future of America’s economic landscape for years to come.