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Norms Impact

How the Trump Administration Is Giving Even More Tax Breaks to the Wealthy

Treasury and the I.R.S. are using opaque rulemaking to hollow out a law Congress passed, rewriting national tax policy without the scrutiny or consent our democracy requires.

Executive

Nov 8, 2025

Sources

Summary

The Treasury Department and Internal Revenue Service issued new notices and proposed regulations that expand tax breaks for large corporations and wealthy investors while sharply reducing the expected revenue from the 2022 corporate alternative minimum tax. The administration is using executive-branch rulemaking to dismantle a congressionally enacted tax floor designed to ensure highly profitable corporations pay federal income tax. The practical result is hundreds of billions more in tax relief for powerful interests, a smaller tax base, and deeper deficit pressure alongside cuts to health and food assistance.

Reality Check

This kind of executive-branch end-run around a congressionally enacted tax floor normalizes governance by administrative sabotage, where the winners are preselected and the public pays through deficits and program cuts. On these facts, the sharper legal risk is not an obvious criminal offense but an institutional breach: using Treasury and I.R.S. rulemaking to effectively nullify a statute tests the boundary of lawful authority and invites government by discretion rather than law. When agencies can quietly convert a $222 billion enforcement mechanism into “a fraction” through notices and proposed regulations, our rights are no longer set by elected representatives but by whoever controls the machinery of interpretation.

Detail

<p>Beginning in the summer of 2025, the Treasury Department and the Internal Revenue Service issued a succession of notices and proposed regulations that provide tax relief to large private equity firms, crypto companies, foreign real estate investors, insurance providers, and multinational corporations. The actions are described as rapidly weakening the corporate alternative minimum tax enacted in 2022 and signed by President Joseph R. Biden Jr.</p><p>That 2022 provision was intended to ensure that some of the country’s most profitable corporations pay at least some federal income tax, targeting companies that could report large profits to shareholders while maintaining low federal tax liabilities. The provision had been projected to raise $222 billion over a decade, but the new administrative guidance is expected to reduce collections to a fraction of that amount.</p><p>These administrative changes follow a roughly $4 trillion tax-cut package President Trump signed into law in July 2025, passed entirely by Republicans, projected to add trillions to the federal deficit and paired with cuts to health care for the elderly and food stamps for poorer Americans.</p>