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A new report from the Institute on Taxation and
Economic Policy (ITEP) finds that President Donald Trump's tax and economic
policies are increasing costs for nearly all Americans in 2026, while the
wealthiest 1% receive significant financial benefits.
According to the October 8 report,
middle-income households face an average of $1,700 in additional annual costs,
while the poorest 20% of Americans face an increase of approximately
$750. Meanwhile, the wealthiest 1% receive an average
financial benefit of $12,560.
Although $750 is a smaller amount, it represents a
much greater financial burden for lower-income people. The report estimates
that these additional costs consume 5.7% of the income of the poorest
Americans, compared with 2.7% for middle-income households.
ITEP attributes these increases to several factors,
including Trump's 2025 tax law, tariffs and other policies contributing to
higher consumer prices, and the expiration of expanded Affordable Care Act
health insurance tax credits. For most Americans, the report finds that higher
prices and health care expenses outweigh any savings from tax cuts.
Impact of Key Trump Policies on Taxes and Costs: National and State Estimates
New ITEP Analysis: Trump Policies Raise Taxes and Costs for All Income Groups but the Richest 1%