The TCJA's primary feature was the reduction of the corporate tax rate from 35% to 21%, which was a substantial windfall for big businesses. According to the Joint Committee on Taxation, corporations received nearly a $1.35 trillion benefit from this rate cut over a decade. At least 60 businesses reported paying effectively zero in federal taxes in 2018 as a result. This significant reduction in corporate taxes has translated into increased profits for large companies, which often use these savings for stock buybacks rather than investment in new jobs or higher wages for workers. Corporations spent a record $1 trillion on stock buybacks in 2018, a practice that predominantly benefits shareholders, including top executives and the wealthy, rather than ordinary workers.

The TCJA also included a 20% tax deduction for pass-through businesses, such as partnerships, S corporations, and sole proprietorships. The pass-through deduction was one of the most costly provisions in the TCJA, costing taxpayers an estimated $414.5 billion – and failed to produce the economic growth its proponents touted. In 2021, tax filers with adjusted gross incomes (AGI) of $500,000 or more—representing the top 1.5 percent of filers—claimed over half of all pass-through deductions, even though they made up only 6 percent of all returns that included the deduction. Many small businesses struggle to navigate the complex eligibility criteria and limitations based on income levels and business types, putting more money into the pockets of the ultra-wealthy.

The TCJA also lowered individual tax rates across the board but in a way that disproportionately favored the highest earners. The top marginal tax rate was reduced from 39.6% to 37%, providing substantial tax savings for the ultra-wealthy. According to the Center on Budget and Policy Priorities, the top 1% of earners received an average tax cut of about $51,000 in 2018, compared to just $930 for the middle 20% of earners. In 2025, it's estimated that the top 1% will receive an average tax cut of $60,000 -- with the bottom 60% only slated to receive $500. This disparity has contributed to the growing wealth inequality in the United States, as the benefits of the TCJA are skewed heavily towards those at the top of the income distribution. And, while the wealthy benefit from tax cuts – the TCJA raises taxes on some lower-income earners.

New York, home to a significant number of high-income earners and major corporations, provides a clear example of how the TCJA benefits the wealthy and big businesses. In 2019 alone, New York's top 1% of income earners netted $2,881,000,000 in tax savings. And, in 2020, 91% of New York's top 1% of earners saw tax cuts averaging to about $49,000 per taxpayer. 

Moreover, New York-based corporations have also reaped significant benefits from the TCJA. New York City is the home of Wall Street, which is the center of the United States’ financial industry. The financial securities industry holds trillions in assets and consists of big banks like Goldman Sachs, JPMorgan Chase, and several other major financial institutions. It’s estimated that the financial industry will gain nearly $250 billion in tax benefits from 2018 to 2027 from the  tax cuts for C Corporations in the TCJA alone. For example, JPMorgan Chase, headquartered in New York City, saw its effective tax rate drop substantially post-TCJA,contributing to record profits in the years following the tax overhaul. Similarly, other large New York-based corporations, such as Pfizer and Verizon, have reported substantial tax savings, often used for stock buybacks and dividends rather than significant reinvestment in the workforce.

While the TCJA has significantly benefited the wealthy and corporations, its impact on working people has been minimal. The promised trickle-down effect, where tax savings for corporations and the wealthy would purportedly lead to higher wages and more jobs, has not materialized. According to the Economic Policy Institute, wage growth for average workers has remained sluggish, with minimal real pay increases since the TCJA's enactment.

In New York, the effect on working families has been particularly muted. The cost of living in New York State is one of the highest in the country—20.5% higher than the national average. The modest tax cuts received by middle and low-income earners have done little to offset high housing,healthcare, and education costs. For instance, a middle-income family in New York might see an annual tax saving of a few hundred dollars, which pales in comparison to the tens of thousands saved by the state's wealthiest residents. In 2019, the richest 5% of New Yorkers were estimated to see 51% of tax cuts – with the bottom 60% only seeing 15%, and the poorest 20% of New Yorkers only seeing 1% of all tax cuts.