Trump's Tax Law Favors Wealthy, Leaves Some Workers Behind

Promised 'no tax on tips, no tax on overtime, no tax on Social Security,' but the reality is more complex

Apr. 9, 2026 at 3:52pm

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A serene, cinematic painting of a private jet sitting alone on a tarmac, the aircraft's sleek lines and metallic surfaces reflecting the warm, golden light of the setting sun. The scene evokes a sense of exclusivity and privilege, highlighting how the tax law's benefits have disproportionately favored the wealthy.The Trump tax law's generous deductions for private jet purchases have fueled a boom in luxury aviation, further widening the divide between the wealthy and the working class.Boca Raton Today

President Trump's 2024 tax law has provided significant benefits to the wealthy, with about 60% of the tax savings projected to go to the top fifth of households earning more than $217,000. Meanwhile, some middle-income workers, including tipped employees and overtime earners, are finding the promised tax breaks are more limited than expected. The law has also led to the loss of some government benefits for low-income families.

Why it matters

The Trump tax law has contributed to growing economic inequality in the U.S., with the wealthiest Americans reaping the biggest gains through tax cuts on investments, inheritances, and business expenses like private jets. At the same time, many middle-class and working-class Americans are seeing more modest benefits or even higher taxes, raising concerns about the fairness of the tax system.

The details

The tax law includes provisions that allow private jet buyers to deduct the full cost of aircraft in the year of purchase, and extends and expands the estate tax exemption, benefiting the ultra-wealthy. However, the promised 'no tax on tips, no tax on overtime, no tax on Social Security' has proven more complex. Tipped workers can only deduct up to $25,000 in tips, excluding many service industry workers. Overtime tax savings are limited to a $12,500 deduction, excluding certain professions. And the Social Security tax deduction phases out for higher-income earners.

  • The Trump tax law was passed in 2024.
  • The law's provisions went into effect for the 2025 tax year.

The players

Sherie Cummings

A casino cocktail waitress in Las Vegas who expected a bigger tax refund due to Trump's promises, but was disappointed to find the tips deduction was capped at $25,000.

Barry Shevlin

The CEO of FlyUSA, a company that sells and manages private jets, who says the tax law's bonus depreciation provision has boosted demand for private aircraft.

Jordan Waxman

A managing partner at financial advisory firm Nucleus Advisors, whose clients with a combined net worth of $3 billion have seen significant benefits from the tax law, including the expansion of the estate tax exemption.

Ted Pappageorge

The secretary-treasurer for the Culinary Workers Union in Las Vegas, which is pushing for federal legislation to expand the tips deduction and make it permanent beyond 2028.

Anthony Winters

A 65-year-old retiree in Michigan who benefited from the $6,000 tax deduction for older adults, using the savings to buy gifts for his grandchildren and go out to dinner with his wife.

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What they’re saying

“We were disappointed. I feel like a lot of the servers, bartenders, waitresses, tip earners were gaslit by the 'no tax on tips.'”

— Sherie Cummings, Casino cocktail waitress

“There are benefits for even taxpayers who are at lower or more moderate income levels, but as a whole, there's certainly more tax cuts as you get higher and higher up the income levels.”

— Shai Akabas, Vice president of economic policy, Bipartisan Policy Center

“It disproportionately helps people who, let's face it, are not in need of that much help. By and large, as a package, the highest 10% of earners, which are my clients, essentially see their incomes rise as a result of this by a few percentage points over the next five to 10 years.”

— Jordan Waxman, Managing partner, Nucleus Advisors

What’s next

The Culinary Workers Union in Las Vegas is advocating for federal legislation to expand the tips deduction and make it permanent beyond 2028.

The takeaway

The Trump tax law has exacerbated economic inequality, with the wealthiest Americans reaping the biggest benefits through tax cuts on investments, inheritances, and business expenses. Meanwhile, many middle-class and working-class Americans, including tipped workers and overtime earners, are finding the promised tax breaks are more limited than expected, raising concerns about the fairness of the tax system.