The Trump tax bill offers massive cuts benefiting top earners in certain states.

From CNBC: 2025-07-03 13:19:00

House Speaker Mike Johnson, R-La., leads the House of Representatives in voting on President Trump’s “big beautiful bill” reconciliation package. The bill, set to offer massive tax cuts, would benefit the wealthiest U.S. households. The top 1% could see an average tax cut of $66,000 in 2026, with some states seeing even larger cuts.

Senate Republicans passed the bill, offering $4 trillion in net tax cuts over a decade, with most benefits going to higher-income households. The bill also cuts billions from programs like Medicaid and food stamps. The legislation extends 2017 tax cuts, lowers income tax rates, and benefits high-income households while capping state and local tax deductions.

Wealthy residents in states like Wyoming, South Dakota, and Texas would see significant tax cuts, while California and New Jersey’s highest earners would receive smaller cuts. The top 20% of U.S. households would get a 3.4% tax cut in 2026, while the bottom 20% would only see a 0.8% cut. Overall, the wealthiest households stand to gain the most financially from the bill.

Read more: Trump ‘big beautiful’ bill gives top 1% biggest tax cuts in these states