WASHINGTON — Higher-earning households would get the biggest boost from the tax cuts Republicans hope to pass this year, according to a new analysis of the legislation.
The top 20% of households, with incomes above $217,000, would reap 60% of the benefit of the lower taxes envisioned by the proposal next year, the Urban-Brookings Tax Policy Center found.
More than 84% of households would see a tax cut and just 4.4% would face an increase. The average household cut would amount to about $2,900. The lowest 20% of earners would take home 0.8% more money next year, on average, while the top 20% would see 3.8% more after taxes.
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That the tax cuts in the One Big Beautiful Bill Act favor wealthier taxpayers comes as little surprise, since the bill’s tax provisions mostly are a continuation of across-the-board cuts Republicans first enacted in 2017. But the Tax Policy Center numbers do show that various pro-worker tax cuts President Donald Trump proposed during the campaign, including tax breaks on tips and overtime pay, aren’t enough to tilt the bill more favorably toward lower earners.
