Congress is working on passing a tax and spending bill that largely centers around extending the Trump tax cuts, which were originally passed in 2017. The House and Senate have each passed their own versions of this megabill. The megabill has now moved back to the House for further debate on the changes that the Senate made.
You can find our analysis and resources on the tax provisions in these bills below.
At a glance:
- The megabill would slash taxes for the wealthy and corporations while deeply cutting funding for health care, food assistance, and other public services.
- Even with these spending cuts, the megabill will add trillions to the national deficit.
- The tax cuts for most working-class Americans will be erased by increased costs that stem from program cuts in the bill and President Trump’s tariffs.
- The megabill is very unpopular. While a majority of Americans have for decades thought that the wealthy and corporations pay too little in taxes, this bill slashes their taxes.
By the Numbers:
- The richest 1% of Americans would receive a total of $117 billion in net tax cuts in 2026 from the Senate bill.
- More than 70% of the net tax cuts would go to the richest fifth of Americans in 2026. Only 10% would go to the middle fifth of Americans, and less than 1% would go to the poorest fifth.
- The richest 5% alone would receive 45% of the net tax cuts next year.
- The effects of President Trump’s tariff policies alone offset most of the tax cuts for the bottom 80% of Americans. For the bottom 40% of Americans, the tariffs impose a cost that is greater than the tax cuts they would receive under this legislation.
This abominable bill will make history – in appalling ways. Never before has legislation taken so much from struggling families to give so much to the richest. It makes the biggest cuts to food aid for hungry families, executes the largest cuts to health care ever, adds trillions to the national debt – all to give $117 billion to the richest 1 percent in a single year. It’s no wonder that this bill is also extremely unpopular. Historians – and voters – will look back at this as a dark day in U.S. history.
— Amy Hanauer
ITEP EXECUTIVE DIRECTOR
Read Full Statement
Analysis of Tax Provisions in the Senate Reconciliation Bill: National and State Level Estimates
Compared to its House counterpart, the Senate bill makes certain tax provisions more generous, including corporate tax breaks that it makes permanent rather than temporary. But the bottom line for both is the same. Both bills give more tax cuts to the richest 1 percent than to the entire bottom 60 percent of Americans, and both bills particularly favor high-income people living in more conservative states.
Analysis of Tax Provisions in the House Reconciliation Bill: National and State Level Estimates
The poorest fifth of Americans would receive 1 percent of the House reconciliation bill’s net tax cuts in 2026 while the richest fifth of Americans would receive two-thirds of the tax cuts. The richest 5 percent alone would receive a little less than half of the net tax cuts that year.
Recent Work
- Senate Megabill Takes Cap Off Unprecedented Private School Voucher Tax Credit, Potentially Raising Cost by Tens of Billions Relative to House Version
- Trump Megabill Will Give $114 Billion in Tax Cuts to the Top 1% in 2026. How Much In Your State?
- How Much Do the Top 1% in Each State Get from the Senate Tax Bill?
- Senate Republicans Rig the Rules to Make Their Tax Bill Look Responsible. It’s Not.
- House Bill’s Deduction for Car Loan Interest Would Not Offset Tariff-Related Auto Price Increases for Most Buyers
- The ‘Big, Beautiful’ Bill Creates a $5 Billion Tax Shelter for Private School Donors
- Musk-Trump Feud Shows Need to Tax the Rich
- Trump’s Last Tax Cuts Failed Americans Like Me. Let’s Not Repeat the Mistake.
