Major Tax Breaks for the Wealthy & Well-Off
Permanent Extension of 2017 Trump Tax Cuts
- The OBBBA makes the 2017 top rates permanent: 37% maximum individual tax rate, benefiting high earners
Expanded SALT Deduction
- Raises the SALT cap to $40,000 for incomes under $500K (from $10K), heavily benefiting homeowners in high-tax states .
Estate Tax Exemption Increased
- Exemption raised to $15M per individual ($30M per couple), shielding massive inheritances from taxation .
Enhanced Pass‑Through Deduction
- Deduction for income from businesses like partnerships/S-corps increased to 23%, favoring wealthy small-business owners and investors .
Corporate Tax & Business Incentives
- Maintains the 21% corporate tax rate, extends full expensing for business investment, and eases deductions for R&D and interest—directly benefiting corporations and their wealthy shareholders .
Opportunity Zone Loopholes Remain
- Laws allowing wealthy investors to shelter capital gains via Opportunity Zones are preserved, benefiting high-net-worth individuals
Disproportionately Heavy Gains at the Top
- Top 1%: Average benefit of $66K–$70K in the first year .
- Top 20%: Receive 60–72% of total tax benefits .
- Bottom 20%: Facing net income losses averaging $700–$800 annually due to safety net cuts .
- The CBPP projects millionaires could receive over $100K annually in tax savings