Democrats keep attacking President Donald Trump’s Big Beautiful Bill Act of 2025, as a tax cut for the rich. But the data show that the average family GAINED roughly $2,000 on their lower tax bill for this year. Every Democrat in Congress voted no, even as they complained of a “middle-class affordability crisis.” Maybe that’s because $2,000 is peanuts to rich and famous limousine liberal Democrats. But not for the rest of us.
The goal of the Trump tax cut was simple: strengthen the economy with lower tax rates and let working and retired Americans keep more of what they earn. The early evidence confirms this is exactly what has happened. Initial IRS data shows that almost HALF of filers have already taken advantage of the bill’s middle‑income tax provisions.
Income taxes have become such an ingrained part of American life that many workers barely notice how much is snatched from their paychecks – payroll taxes, federal income taxes, state income taxes, etc. We see the net amount and forget the gross amount is what we actually earned. Because less is now taken out, the Trump tax cut functions like a pay raise.
So who is getting a pay raise from the One Big Beautiful Bill? Three major provisions were deliberately crafted to help working‑class and middle‑class Americans keep more of their hard‑earned dollars.
First, the law eliminated income tax on tipped wages, subject to certain caps. For millions of waiters, waitresses, bartenders, baristas, barbers, hairstylists, DoorDash drivers, tour guides, casino dealers, and counter staff at casual restaurants, this means a substantial share of their income is no longer taxed. In some of these occupations, tips make up more than half of total earnings, so the impact is enormous. These workers may lead rich and fulfilling lives, but none of them qualify as Trump’s “rich friends.”
Second, the bill eliminated federal income tax on overtime pay, again with income limits. This provision frees hourly workers from being taxed when they put in extra hours. Put differently, eliminating tax on overtime reduces the number of hours each day that hourly workers labor not for themselves or their families, but for the government. Given how many Americans are paid hourly, this provision overwhelmingly benefits people who are not wealthy.
Third, the tax bill reduces the tax RATE you pay. This incentivizes more work because the reward for getting a job and working more hours is more money.
Through March 25, more than 85 million individual tax returns had been filed. Of those, 37.5 million — 44% — saw an immediate reduction in their tax bill.
The bill also created a forward‑looking benefit for children: Trump Accounts. These accounts help young Americans begin investing early, giving them a head start on saving for education, starting a business, or building long‑term financial security. Children born between Jan. 1, 2025, and Dec. 31, 2028, are eligible for a $1,000 federal contribution, and early tax data shows strong enthusiasm. Roughly 2.6 million returns established Trump Accounts for more than 4 million children, and nearly one million qualified for the federal contribution.
When we account for all of these tax benefits, what we find is that far from being “tax cuts for the rich,” the One Big Beautiful Bill’s tax provisions actually reduced the tax bill paid by the middle class by roughly 14%. Meanwhile, the SHARE of federal income taxes paid by the richest 10% rose from 70% to 77% and the top 1% share rose from 38% to 40%.
If the rich are now paying a larger share of the tax pie, how is the Trump tax cut “a giveaway to the rich?” Maybe the left calls the Trump tax cut “One Big Ugly Tax Bill” because they want every one of us – not just the rich – to pay more taxes.
Stephen Moore is a contributor to The Daily Caller News Foundation, a senior fellow at America First Policy Institute, and a cofounder of Unleash Prosperity.
President Donald Trump has done an admirable job at defanging the IRS, which was converted into a weaponized agency targeting their political enemies.
Chief Justice John Marshall famously pronounced early in our nation’s history that “the power to tax is the power to destroy.”
The Democrats inside the Biden IRS took that to heart. They hired thousands of new IRS agents to harass businesses, rich people, and, in some cases, Republican donors. Some of the lieutenants to the infamous IRS enforcer Lois Lerner, the woman who aimed her agency’s auditing guns at conservative groups, are still active at the tax agency.
One of the most noxious of Biden’s left-over regulatory rules applies to partnerships – an increasingly common form of business organization and expansion. Microsoft’s revenues/profits flow down through its business partners.
Business partnerships are vital contributors to the U.S. economy. A 2024 study by Ernst and Young for the Small Business Entrepreneur Council found that 10 million Americans work for these partnerships, and they generate $1.3 trillion in GDP.
The IRS evidently thinks they are TOO successful.
A gang of holdovers from the Biden administration and the ranking Democrat on the Senate Finance Committee, Ron Wyden of Oregon, are trying to administratively change the taxation of pass-throughs and partnerships and subject these entities to “guilty until proven innocent” audits. The changes would alter the “economic substance doctrine” which determines how the taxes on a business’s profits are applied to the partners. If the entities are found liable for increased tax assessments, they could face a giant tax bill AND a confiscatory 60% strict liability penalty.
These partnership rules are admittedly murky and may need updated protections against potential tax evasion abuses. But this rewrite of the tax laws would be applied WITHOUT CONGRESSIONAL APPROVAL. The Trump admin promised to end this illegal rewrite of the tax laws, but because of the turmoil at the IRS – with a revolving door of IRS Commissioners – the Biden-era rules still stand.
Meanwhile, Wyden has introduced legislation to codify these new rules into law. Get this: the Joint Committee on Taxation scores these IRS “reforms” as a potential $730 billion business tax increase over the next decade.
If the IRS isn’t told to cease and desist, they could be the perpetrators of the largest non-congressionally approved tax increase in American history.
The Trump administration is supposed to be easing the tax burden on our businesses and employers to make them more globally competitive, not handing them a three-quarter trillion-dollar tax INCREASE.
Trump or Treasury Secretary Scott Bessent should fix this tax raid on business before it reverses some of the job-creating benefits of Trump’s Big Beautiful Bill.
Stephen Moore is a contributor to The Daily Caller News Foundation, a visiting senior fellow at the Heritage Foundation, and a co-founder of Unleash Prosperity.
Let’s start with a very simple truism: you can’t have prosperity without people.
Human beings are the most valuable resource, because it is human ingenuity that creates and cultivates all other earthly resources. We as human beings are the custodians and protectors of the planet, not its destroyers, as the radical environmentalists would have you believe.
The richer and more technologically advanced we become, the more likely we are to avert a catastrophic event like a giant meteor crashing into the planet and destroying all life.
Which brings us to a potentially ruinous trend: many countries are literally running out of people.
This alarming chart on births and deaths in Europe is a terrifying glimpse into the future of a new dark age of the western world, if birth rates don’t start rising — and quickly. Europeans are becoming extinct.
Negative population growth is a sure killer of prosperity and human flourishing. It’s also contrary to Christianity and most other religions, which instruct us to “be fruitful and multiply.”
It’s not just Europe. Japan and Korea will cut their populations in half over the next 80 years if they don’t start moving away from one child per couple rates of propagating.
Why are rich countries depopulating the planet?
For 60 years, prophets of doom like Paul Ehrlich (“The Population Bomb”) and governments around the world — including our own — warned that we all had a moral obligation to save the planet by having fewer babies. There were periods of forced abortions, forced sterilizations, forced birth control, and — in advanced nations like in Europe and the U.S. — a cultural sneering at families with four or five or six kids.
That mendacious propaganda campaign worked all too well. Look what it has wrought.
There are other explanations. As we have gotten richer — and especially as women’s earnings have risen — the “cost” of having a child in terms of lost income, has risen. Women are less likely to have more than one or two children. To be clear: I’m NOT suggesting that women should be paid less!
Marriage rates have declined, and vows are coming later in life, so the median year for a woman to have a child keeps rising — leaving fewer fertility years left for multiple children.
Religiosity has declined somewhat in our more secular “me first” society. That’s sad because childless couples tend to be less happy. And why have kids if you don’t believe there is a divine reason we were put on this planet?
The solutions to this problem aren’t obvious. Pro-natalist government policies, like paying people to have kids and offering free childcare have had spotty levels of success.
The U.S. has delayed the demographic crisis happening in Europe and much of Asia through immigration of young workers. Not only do immigrants increase the population, but they tend to have more kids than native-born Americans.
But even with immigration, we in America have an obvious aging problem.
One simple step is to start celebrating as a society the virtues and the self-sacrifice of motherhood. Our schools and our teachers and our clergy and our political leaders need to keep pushing the message that the greatest contribution men and women can give to saving our species is to have more kids — as soon as possible.
Stephen Moore is a contributor to The Daily Caller News Foundation, a cofounder of Unleash Prosperity, and a former senior economic advisor to President Donald Trump.
Here’s an economics lesson that belongs in the text books.
Student loan debt soared to more than $1.5 trillion during the Biden presidency and the response by Washington was to “forgive” hundreds of billions of these unpaid loans by deadbeat borrowers and let the taxpayers pick up the tab. It was never clear why the universities who charge exorbitant tuitions that have reached more than $75,000 a year at many elite schools shouldn’t bear the cost of the program – but that’s another story.
Those of us who watched these events upfold predicted that one result of this policy would be that many college graduates would stop paying back their loans. And guess what?
Just like clockwork, this headline from Bloomberg recently told the whole story:
“Student loans drive U.S. delinquency rate to highest since 2020”
Gee, who – except a bunch of head-in-the-sand- politicians in Washington – would have ever thought that forgiving as many people from paying their student loans as possible would increase future non-payments?
Well, the Biden administration for one. Now that the Department of Education is honestly reporting the data, we find that serious delinquency rates are over more than 10 times what the Biden Department of Education said they were.
There is an old saying in physics and economics: every action in the universe has a reaction. How many students in the future will pay back unpaid student loans when the next forgiveness program is right around the corner? So people who did the right thing and paid back their debts now have to pay more for the people who refused to pay back the money they owed.
In Washington, we love to reward vice and punish virtue.
As we said many times last year: expect student loan defaults to remain sky high for many years, as deadbeat borrowers wait for the next student loan amnesty program.
Fortunately, in the House of Representatives “Big Beautiful tax bill,” there are new caps of $50,000 on student loans for undergraduate students and $100,000 for grad students. This cap should help slow the stampede of higher tuition prices, which have grown two to three times the rate of overall inflation over the last thirty years. The availability of cheap student loans only fueled this stampede of tuition prices. The Wall Street Journal calls this move “The End of The College Free Lunch.”
The bad news is that we should anticipate bigger stashes of student loans to pile up at taxpayers’ doors in the years to come. The good news is that this scam has reminded us that in life incentives matter. This episode brought to light the financial foolishness of debt forgiveness programs and so hopefully we will never do this again.
Stephen Moore is a contributor to The Daily Caller News Foundation, a cofounder of Unleash Prosperity, and a former senior economic adviser to Donald Trump. His most recent book is “The Trump Economic Miracle.”
Donald Trump has promised to create millions of new high-paying jobs.
One easy first step to doing that is to repeal Biden-regulations on America’s 4 million business partnerships (sometimes known as S-corporations) that are prolific job creators. The latest estimates find 10 million Americans employed by these business partnerships, with $800 billion paid in worker salaries and benefits.
For example, “95 percent of Microsoft’s commercial revenue flows directly through” its “partner ecosystem.” The profits from these enterprises are passed through to the 4 million partners, who make tax payments based on their share of those earnings.
These have been the tax rules governing partnerships for many decades. The Biden administration didn’t like the tax rules, so instead of asking Congress to change them, Biden’s Treasury Department worked through the back door to unilaterally modify the rules, as part of its “fairness” agenda.
The precise tax target is a technique used by partnerships to lower their tax liability called “basis shifting.” While technically complex (because everything with the U.S. tax code is complicated), it is also entirely legal and has been used by partnerships for decades to adjust the value of their assets during a transaction or transfer. Whatever one thinks of basis shifting, the Internal Revenue Service (IRS) doesn’t have the unilateral authority to change the tax laws — only Congress does.
The Biden crackdown treated business partners as tax cheats. When they hired 87,000 agents to harass companies and individuals, nearly 4,000 of these IRS tax collectors were hired to among other things, “expand enforcement focusing on complex partnerships.”
The more than four million business partnerships became an overnight suspect class, as did the tax returns of millions of partners.
To pry money out of these partnerships, the Biden team wanted to create a retroactive tax (which should be illegal) by changing the rules and apply them going back six years in time. So a tax structure that may have been perfectly legal in the past could now trigger investigations, fines, and litigation.
Biden Treasury Secretary Janet Yellen also created a new investigative office to oversee and harass partnerships. That should be shutdown.
So a tax structure that may have been perfectly legal in the past could now trigger investigations, fines, and litigation.
More than 90% of partnerships are small businesses, according to an Ernst and Young study prepared for the Small Business & Entrepreneurship Council (SBE Council) last year. The business partnership arrangement allows these firms to have ready access to needed capital to expand their operations. In all these companies generated $1.3 trillion to our GDP.
These partnership arrangements allow promising small companies to grow into large ones. This uniquely American business structure is a hallmark of U.S. entrepreneurial success — a path for businesses to go from good to great.
It isn’t broken. The system works. That’s why the Trump Treasury Department needs to immediately command the IRS to cease and desist the Biden witch hunt against these partnerships.
It’s a war on wealth. A war on U.S. businesses. And it’s a direct assault on the Trump promise to “make America great again.”
Stephen Moore is a contributor to The Daily Caller News Foundation, a senior fellow at the Heritage Foundation, and a co-founder of Unleash Prosperity. His latest book co-authored with Arthur Laffer is “The Trump Economic Miracle.”
