Washington D.C. — Former President Donald Trump’s sweeping economic legislation — commonly known as the “megabill” — is making waves across America, with economists and political analysts warning of potential wealth transfers through one of the biggest upward wealth transfers ever witnessed by modern America.
Last month, Congress narrowly approved the American Growth and Prosperity Act (AGPA) with strong Republican backing but minimal Democratic support. Trump-align lawmakers touted its passage as an historic boost for the economy; its contents include corporate tax cuts, deregulation measures, energy subsidies, revisions to entitlement programs and more.
Critics contend that economic growth often results in the redistribution of wealth – from working- and middle-class Americans to some of the country’s wealthiest individuals and corporations.
Tax Breaks for Wealthy Individuals and Corporations
At the core of Trump’s megabill is a permanent reduction of corporate tax rates from 21% to 15% – something he pursued during his first term – as well as eliminating capital gains taxes on investments held for more than five years and raising estate tax thresholds so ultra-wealthy families can transfer generational wealth tax-free.
“Make no mistake: this bill is a windfall for billionaires,” stated Senator Elizabeth Warren (D-MA). While everyday Americans struggle with housing costs, health care expenses, and student debt, those in the richest one percent are being given billions on a silver platter.
White House officials and Trump supporters support these cuts on grounds that they will foster job creation while infusing capital into the U.S. economy.
“This bill is about American jobs, energy and wealth,” noted Senator J.D. Vance of Ohio as one of its staunch supporters. When businesses expand, all Americans benefit.
Budget Cuts to Social Programs Raise Alarm.
In exchange for corporate relief, AGPA implements cost-cutting reforms to federal social programs. This includes tighter eligibility criteria for Medicaid, food stamps and housing subsidies – as well as gradual increases to Social Security retirement age.
CBO estimates that under the new rules, over 10 million Americans could lose access to some form of federal assistance within five years.
“This megabill isn’t about growth; it’s about shifting the burden,” according to Dr. Alicia Martinez of Brookings Institution. It reduces public spending on those most in need while reallocating relief as tax benefits among those least in need.”
Energy and Deregulation Provisions Benefit Big Industry
The bill also features generous tax credits for fossil fuel companies and repeals several environmental regulations enacted during Obama and Biden administrations, drawing criticism that these provisions favor large corporations over public health and climate goals.
Environmental groups such as Sierra Club have strongly condemned this legislation as it serves as “a blueprint for corporate plunder”.
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Protests erupted across major cities following passage of the bill, and civil rights organizations pledged to challenge its provisions in court. Polls reveal that support for Trump remains high among his base but most Americans disapprove of its core measures.
As political battles intensify ahead of the 2026 midterm elections, its effects will likely continue to shape debates about inequality, social justice and government’s role in America’s economy for years to come.