Price increases, health care tax changes, and the 2025 tax law leave nearly every income group worse off
The major tax and economic policies of President Trump’s second term are increasing taxes and household costs for Americans across nearly the entire income spectrum, according to a new analysis from the Institute on Taxation and Economic Policy (ITEP).
The report, The Impact of Key Trump Policies on Costs and Taxes for Americans, finds that every income group except the richest 1% is paying more in 2026 as a result of three major policy changes: new tax provisions enacted through the One Big Beautiful Bill Act (OBBBA), the expiration of the Enhanced Premium Tax Credit, and price increases during Trump’s second term above what had previously been projected. It includes state-by-state data.
The middle 20% of Americans will pay an average of about $1,700 more in 2026, while the poorest 20% will pay roughly $750 more. The richest 1 percent, meanwhile, will pay an average of about $12,560 less.
“The tax cuts Americans were promised – which were tilted heavily to the top to start – are being overwhelmed by higher prices and higher health care costs for most families,” said Steve Wamhoff, ITEP federal policy director and author of the report. “When you look at the full picture rather than tax cuts in isolation, the result is striking: the typical American in every income group is paying more, except that the richest 1% is the one group that comes out ahead.”
Read the full report and download national and state-by-state data
