Summary
A new analysis from the Institute on Taxation and Economic Policy finds that recent U.S. tariffs and tax changes shift costs toward low- and middle-income households while favoring the wealthy. The richest 1% will receive the largest average tax cuts in 2026, while middle-income earners face higher taxes and poorer families see their tax burden rise. Tariffs raise prices on imported goods, disproportionately hitting everyday consumers who spend more on goods. Temporary reliefs in tax law won’t offset cuts to key programs like Medicaid and SNAP. Overall, only high-income households come out ahead under current policies.
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