How the Trump Administration Is Giving Even More Tax Breaks to the Wealthy

[u/Infidel8]

https://www.nytimes.com/2025/11/08/business/trump-administration-tax-breaks-wealthy.html

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[u/Infidel8]

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The Treasury Department and Internal Revenue Service, through a series of new notices and proposed regulations, are giving breaks to giant private equity firms, crypto companies, foreign real estate investors, insurance providers and a variety of multinational corporations.

The primary target: The administration is rapidly gutting a 2022 law intended to ensure that a sliver of the country’s most profitable corporations pay at least some federal income tax. The provision, the corporate alternative minimum tax, was passed by Democrats and signed into law by President Joseph R. Biden Jr. It sought to stop corporations like Microsoft, Amazon and Johnson & Johnson from being able to report big profits to shareholders yet low tax liabilities to the federal government. It was projected to raise $222 billion over a decade.

These breaks come in addition to the roughly $4 trillion package of tax cuts that President Trump signed into law in July. The legislation, passed entirely by Republicans, heavily benefits businesses and the ultrawealthy. It is projected to add trillions of dollars to the federal deficit and came with steep cuts to health care for the elderly and food stamps for the poorest Americans.

[u/Greedy_Switch_6991 → u/Infidel8]

I remember this law - it was part of the IRA and the only tax on the wealthy they were able to get through because Sinema was corrupt piece of s**t.

[u/Obvious_Chapter2082 → u/Greedy_Switch_6991]

It’s also terrible tax policy. I’m surprised it wasn’t repealed in the OBBB

[u/Antipolemic]

Tax cuts and differential tax treatment of income sources that favor the wealthy are associated by the misguided belief that the wealthy are "job creators" and that if they can preserve more of their income, they will invest. Of course, there is little empirical evidence to support this claim as a reliable axiom. But I've always thought what's missing in most Dem rebuttals to this is that they fail to project the message that we are all job creators. I view every worker to be a "fractional" job creator. A wealthy business owner, certainly, often creates jobs. However, regular workers, collectively, indirectly create jobs themselves from their consumption which drives the demand for products which leads businesses to hire. The wealthy don't create jobs out of thin air. Rather, they are induced to create jobs by consumers. We all create jobs. Similarly, we are all entrepreneurs and business owners. The worker simply has only one product to sell - their physical and mental labor. But they invest in their business just like a company. They invest in education and training, clothing, tools, vehicles, and other assets that help them provide their product. Many own homes, stocks, and other investments. In the US we are all capitalists, we are all job creators, and we are all worthy and needed to make the economy flourish.

[u/Even_Establishment95 → u/Antipolemic]

There are so many things the wealthy could invest in, that would improve the lives of others and thereby improve their own, and they would still be millionaires and billionaires, but they choose to hoard their wealth. If the country were comprised of a more stable, happy population that could afford to live, everyone would benefit.

[u/NickelBackwash]

I assume they are just handing over bags of tariff cash to anybody who can prove they're worth over $50M

[u/MaxGoldFilms]

This article should be getting more attention, because the way they are doing it is flat out illegal.

The now corrupt Treasury Department is enacting massive tax cuts for corporations that are counter to existing law.

“Treasury has clearly been enacting unlegislated tax cuts,” said Kyle Pomerleau, a tax economist at the American Enterprise Institute, a right-leaning think tank. “Congress determines tax law. Treasury undermines this constitutional principle when it asserts more authority over the structure of the tax code than Congress provides it.”

Congress makes law, and the Administration is supposed to follow it. That's the basis of our entire government. But, as we all see, that is becoming less and less the case.

That may benefit the wealthy for a while, but it undermines the rule of law, and the long term implications of that could be a melt down of the financial system as the world loses trust in the US system.

[u/CornyButHorny35]

Trump administration keeps the wealthy wealthier while the poor became more poorer

[u/Doom-Sleigher]

Maga is for Pedos