Economist Says Tax Breaks for the Wealthy Deepen Struggles of Poor Americans

Teresa Ghilarducci of the The New School argued that opposition to higher taxes on the ultra-rich reflects a longstanding belief that wealth is inherently deserved while poverty requires discipline, in an opinion piece published by Project Syndicate.

Debate is growing over tax cuts and social safety net funding.

Responding to arguments made by Michael R. Strain of the American Enterprise Institute, Ghilarducci wrote that growing economic insecurity among Americans contrasts sharply with record wealth gains among the top 1%.

She criticized the One Big Beautiful Bill Act (OBBBA), signed by President Donald Trump on July 4, 2025, arguing that it expands tax breaks for wealthier households while cutting support for low-income Americans.

According to the Congressional Budget Office (CBO), the law is projected to reduce income for the bottom 10% of households by 3.1% by 2034, while increasing income for the top 10% by 2.7%.

The legislation also includes reductions in federal funding for Medicaid and the Supplemental Nutrition Assistance Program (SNAP), which critics argue could leave millions without healthcare or food assistance.