Trump’s Tax Cuts Favor Wealthy Over Typical Workers Amid Economic Strain
Trump's new tax cuts disproportionately benefit high-income earners, leaving typical W-2 workers with minimal gains. Adam Michel of the Cato Institute notes that a childless W-2 worker will see little year-over-year change, underscoring the uneven distribution of advantages.
The policy arrives as Republicans face midterm elections with affordability concerns looming large. Despite TRUMP dismissing these worries as a "hoax," consumer sentiment nears record lows, wage growth stagnates, and hiring slows.
High-income filers in states like California, New York, and New Jersey reap the most benefits, alongside seniors and tipped workers. Only a quarter of taxpayers gain from the enhanced child tax credit, while smaller fractions qualify for senior deductions or overtime write-offs.
Refund forecasts mask the disparity, with averages skewed by larger payouts to wealthier households. The gap between rhetoric and reality grows as economic pressures mount.
