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Analysis argues Trump tax bill cuts multimillionaires as well
The article says a permanent deduction for pass-through business income is set to cost the budget $820.0bn over 10 years, according to the cited estimates.
A Guardian analysis argues that Trump’s One Big Beautiful Bill Act delivered large tax cuts not only to “small business owners” but also to multimillionaires, challenging messaging that the policy would not benefit the wealthy.
The piece highlights that it focuses on “pass-through” businesses, describing them as taking a large share of US firms and employment while avoiding corporate income tax by passing untaxed profits to owners, who then typically face lower individual tax rates.
The analysis says a deduction for pass-through business income was increased from 17% to 20% in 2017 and made permanent in the bill, and it cites an estimate that the deduction will cost $820bn over a 10-year period.
It further claims that in 2022, the distribution of pass-through income skewed heavily toward top earners, citing data that 57% of $1.3tn in pass-through income went to 890,000 people in the richest 1% of the population, according to the Urban Brookings Tax Policy Center.