The Rich Get Richer: By the Numbers

According to data from the nonpartisan Congressional Budget Office (CBO) and the Tax Policy Center:

• Top 1% of Americans (those making over $800,000/year on average) received an average tax break of $50,000 to $150,000 per year under the TCJA—and could receive even more under similar new proposals.
• Top 0.1% (the ultra-rich) saw average cuts upwards of $200,000 per year, driven by cuts to top marginal rates, capital gains, and estate taxes.

Compare that to:

• Middle-class families earning around $150,000 per year: Their average tax cut? Just $1,000 to $2,500 annually. And that number drops after 2025 when many individual tax provisions are set to expire, unless renewed by Congress.

That means for every $1,000 the average family receives in tax breaks, someone in the top 1% may receive $50,000 or more—50 times as much, despite already having exponentially more income and wealth.

Why the Disparity?

1. Income Source Differences: The wealthy earn most of their money from investments, which are taxed at lower rates than wages. Middle-class families mostly earn wages, which are taxed more heavily.
2. Estate Tax Cuts: The ultra-rich save millions when the estate tax is reduced or eliminated. That has no benefit to working families.
3. Pass-Through Loopholes: Business owners in the top 1% can use special deductions and loopholes that salaried workers can’t.
4. Temporary vs. Permanent Cuts: Corporate tax cuts are often made permanent. Individual tax breaks (the kind most families rely on) are usually temporary.

What This Means for the Future

Proponents argue that cutting taxes for the wealthy helps stimulate investment and economic growth. But the evidence is thin. Studies by economists, including Nobel laureates, show that “trickle-down” tax policy rarely results in higher wages or more jobs for average Americans. Instead, it contributes to growing inequality, higher national debt, and underfunded public services like schools, healthcare, and infrastructure.

Conclusion: A Tale of Two Taxpayers

If you’re in the top 1%, the Big Beautiful Tax Bill is a dream come true—a six-figure windfall for doing nothing. But for the rest of us, especially families making $150,000 a year or less, the benefit is barely noticeable—and it won’t last.

It’s not just about dollars; it’s about priorities. When the richest Americans receive 50 times more in tax cuts than the average family, it’s fair to ask: Who is this government really working for?