Trump’s Tax Plan Delivers Big Wins to the Wealthy, Cuts for the Rest in Major U.S. Cities

July 1, 2025

The House-passed tax overhaul supported by President Trump, called the "One Big Beautiful Bill," promises wide tax relief but would disproportionately benefit wealthy households according to Penn Wharton analysis. The legislation makes the 2017 Trump tax cuts permanent, increases the SALT deduction cap to $40,000, temporarily eliminates taxes on tips and overtime pay, and boosts the child tax credit by $500 through 2028. To offset the estimated $2.

Who is affected

Low-income families, particularly Black and Latino households in urban areas
Single mothers earning around $20,000 with children
Working-class Americans in cities like Baltimore, New York, Los Angeles, Detroit, Chicago, Houston, and Washington, D.C.
High-income households and wealthy residents across these cities
Families relying on Medicaid and SNAP benefits
Future generations (as noted in the Penn Wharton analysis)

What action is being taken

The House is passing a tax overhaul bill supported by President Trump
The legislation is making the 2017 Trump tax cuts permanent and expanding them
The bill is raising the SALT deduction cap from $10,000 to $40,000
The legislation is temporarily eliminating taxes on tips and overtime pay
The bill is increasing the child tax credit by $500 through 2028
The plan is cutting Medicaid and SNAP by more than $1.2 trillion combined

Why it matters

The bill disproportionately benefits high-income households while delivering modest gains or losses for working-class Americans
Low-income families in major cities could lose more in benefit cuts than they gain in tax relief
The legislation creates significant economic disparities, with high-earners receiving five-figure gains while some low-income families face net losses
About 70% of the bill's total value would go to the top 10% of income earners
The cuts to social support programs directly impact vulnerable populations
The increase in federal debt could have negative long-term economic consequences

What's next

No explicit next steps stated in the article

Read full article from source: The San Diego Voice & Viewpoint