Donald Trump doesn't just love billionaires, he loves multimillionaires too
Guardian AU Business
β’Sat, 15 Aug 2026 10:00:54 GMT
π° What Happened
An analysis argues that US tax policy serves the rich more than others. The focus is on Trump's One Big Beautiful Bill Act, or OBBBA. The House version paired a huge tax cut with cuts to food stamps and Medicaid. House Speaker Mike Johnson said it was not giving tax cuts to millionaires. He said the winners were small business owners. The analysis disagrees, saying the benefits mostly go to the wealthy.
π The Backstory
The piece focuses on pass-through businesses. About 95% of US businesses take this form. They employ half of all workers and generate more than half of the nation's business income. These businesses do not pay the corporate income tax rate. Their profits are passed to owners, who often face lower individual tax rates. That can save them billions. The analysis calls the story of the modest Main Street job creator a myth that distorts policy.
π― Why It Matters
Tax laws shape how much money the government has and who benefits. This debate affects everyday Americans, from the taxes they pay to the services they receive.
An analysis argues that US tax policy serves the rich more than others. The focus is on Trump's One Big Beautiful Bill Act, or OBBBA. The House version paired a huge tax cut with cuts to food stamps and Medicaid. House Speaker Mike Johnson said it was not giving tax cuts to millionaires. He said the winners were small business owners. The analysis disagrees, saying the benefits mostly go to the wealthy.
The piece focuses on pass-through businesses. About 95% of US businesses take this form. They employ half of all workers and generate more than half of the nation's business income. These businesses do not pay the corporate income tax rate. Their profits are passed to owners, who often face lower individual tax rates. That can save them billions. The analysis calls the story of the modest Main Street job creator a myth that distorts policy.
Tax laws shape how much money the government has and who benefits. This debate affects everyday Americans, from the taxes they pay to the services they receive.