Trump’s ‘Big Beautiful Bill’ Could Be $3.1 Trillion Jackpot for Affluent Americans Like Elon Musk And Jeff Bezos, Studies Say - Meta Platforms (NASDAQ:META), Amazon.com (NASDAQ:AMZN)

The Republican tax bill, a priority of the Trump administration, could exacerbate wealth inequality in the U.S., according to a report by Oxfam. The non-profit organization argues that the legislation would disproportionately benefit the affluent.

What Happened: Oxfam America’s study suggests that the proposed tax cuts would further stack the odds against ordinary citizens in favor of the wealthy. The report also explores the possibility of implementing a wealth tax on ultra-millionaires and billionaires as a means to address inequality. Oxfam’s analysis shows that a 3% tax on wealth exceeding $1 billion could raise $50 billion from just the 10 richest Americans—enough to fund a year of food assistance for 22.5 million people, reported CNN.

However, the implementation of such a wealth tax could face significant challenges, including valuation of net worth and potential constitutional issues. The debate persists as lawmakers consider whether to extend the 2017 Tax Cuts and Jobs Act, the hallmark tax legislation of the Trump administration.

Meanwhile, a new study from the nonpartisan Congressional Budget Office (CBO) revealed that the benefits arising from the “One Big Beautiful Bill Act,” would not be evenly distributed, with the bottom 10% of earners facing a 4% drop in household resources by 2033, while the top 10% would gain 2% due to lower taxes.

Meanwhile, Kent Smetters, a business economics professor from University of Pennsylvania's Wharton School told CNN that the top 10% of households would receive approximately $3.1 trillion in tax cuts over a decade. This possibly includes the likes of billionaires like Tesla TSLA CEO Elon Musk, Amazon AMZN Founder Jeff Bezos and Meta Platforms META CEO Mark Zuckerberg.

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Why It Matters: The potential impact of the “One Big Beautiful Bill Act” on wealth inequality has been a subject of intense debate. A recent report by the Congressional Budget Office estimated a 4% income drop for the lowest decile of Americans by 2033, raising concerns about the bill’s impact on the wealth gap.

Meanwhile, the bill’s potential to exacerbate the deficit has also been a point of contention. A CBO report suggested that the tax changes, including the extension of the 2017 tax act, could increase the federal deficit by $3.8 trillion.

These concerns have prompted strong reactions from political figures. Senator Elizabeth Warren criticized the Republicans for advancing the bill through late-night votes, questioning their motives. The bill’s potential impact on wealth inequality and the deficit continues to be a key point of contention in ongoing political debates.