‘Big Beautiful Bill' mostly benefits Nevada's wealthiest

Yahoo

27-05-2025

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The tax benefits in the 'One Big Beautiful Bill' will only be big and beautiful for Nevadans' wealthiest households, according to a new analysis by the Institute on Taxation and Economic Policy.
The progressive think tank released a state-by-state analysis of the tax provisions of the 'Big Beautiful Bill Act' passed Thursday by House Republicans. They found that in Nevada, the richest 1% — households making $796,500 or more a year — would see an average tax benefit of $82,590 in 2026. That's equivalent to 2.4% of their average annual income, which is $3.5 million.
Households just under them — the 4% of households making between $293,500 and $796,500 — would see a tax benefit of $14,150. That's equivalent to 3.1% of their average annual income.
Meanwhile, Nevada households in the bottom 20% – those making less than $27,700 a year — would see a tax benefit of $130. That represents 0.8% of their average annual income.
The middle 20% of households — those making between $50,800 and $84,400 — would see a benefit of $1,390. That's equivalent to 2.1% of that group's average annual income.
Here's the tax change across all income levels:
Altogether, ITEP estimates that in Nevada more than a quarter of the tax benefit would go to the top 1% of income earners, and more than two-thirds of the tax benefits would be felt by the top 20% of households.
Nationwide, the richest 1% would receive $121 billion in net tax cuts in 2026. The middle 20% — 'a group that is 20 times the size of the richest 1%,' ITEP emphasizes — would receive half that much.
ITEP in its report noted that 'high-income people in states with less robust tax systems overall do the best.' Nevada is one of 22 states where the richest 1% would receive an average net tax cut of more than $75,000.
The think tank also noted in the analysis that it expects the effects of President Donald Trump's tariff policies to offset 'most of the tax cuts' for the bottom 80% of Americans, and for the bottom 40% 'the tariffs impose a cost that is greater than the tax cuts they would receive under this legislation.'
At the national level, for instance, the poorest 20% of households can expect to see their take-home pay increase by 1% as a result of the changes. But that's more than offset by a roughly 2.4% decrease in spending power due to the effects of the Trump administration's tariffs.
The law's provisions are also relatively favorable toward wealthy overseas investors. 'Foreign investors who own shares in U.S. companies would benefit more than the poorest fifth of Americans,' ITEP's authors wrote. 'These foreign investors would enjoy $23 billion in tax cuts in 2026 compared to just $4 billion for the bottom 20% of Americans.'
Because Republicans are using a procedural known as 'reconciliation,' the bill cannot be filibustered in the Senate. Republicans control 53 Senate seats, meaning they can lose three votes and still pass the bill with a tie-breaking vote from Vice President JD Vance.
Minnesota Reformer reporter Christopher Ingraham contributed to this report.