A priority for the Trump administration, wealth distribution in the United States has been uneven, according to a report from the non-profit organization Oxfam. The organization argues that this legislation will disproportionately benefit the wealthy.
What happened: A study conducted by Oxfam America indicates that the proposed tax cuts will exacerbate wealth inequality in favor of the rich. The report also explores the possibility of imposing a wealth tax on millionaires and billionaires as a means to address wealth distribution inequality. Oxfam's analysis shows that a 3% tax on wealth exceeding one billion dollars could raise $50 billion from just the 10 richest Americans, enough to fund annual food assistance for 22.5 million people, according to CNN.
However, implementing this wealth tax may face significant challenges, including assessing net wealth and potential constitutional issues. The debate continues as lawmakers consider extending the Tax Cuts and Jobs Act of 2017, the Trump administration's flagship tax legislation.
Meanwhile, a new study by the Congressional Budget Office, a non-partisan entity, revealed that the benefits from the "Great and Wonderful Bill" will not be distributed evenly, with the lowest 10% of earners facing a 4% decline in their household resources by 2033, while the top 10% will benefit by 2% due to tax cuts.
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