Stock buybacks. Sales taxes. Loopholes. … Let’s count the ways that tax reforms to benefit the rich and big corporations have exacerbated inequality and drained resources from funding vital public programs.
Changes in tax policies that benefit the wealthy and large corporations have been a key driver of America’s skyrocketing inequality. While a relative few at the top have gained enormous economic and political clout, the squeeze on public revenue has undercut much-needed public investments and services that benefit ordinary Americans. Reversing that trajectory will require an overhaul of our tax code to ensure everyone pays their fair share.
On May 22, 2025, the House passed a budget reconciliation bill that includes tax breaks for the rich and the largest cuts in history to Medicaid and SNAP food assistance. If this bill becomes law, it would lower average household resources for the poorest 10 percent by 3.9 percent per year, or $1,600, during the period 2026-2034. Resources for the richest 10 percent, by contrast, would increase by 2.3 percent, or $12,000, according to CBO.