{"id":17276,"date":"2025-06-25T23:51:17","date_gmt":"2025-06-25T23:51:17","guid":{"rendered":"https:\/\/finderica.com\/?p=17276"},"modified":"2025-06-25T23:51:17","modified_gmt":"2025-06-25T23:51:17","slug":"tpc-finds-the-senates-tax-cut-mostly-favors-high-income-households","status":"publish","type":"post","link":"https:\/\/finderica.com\/?p=17276","title":{"rendered":"TPC Finds The Senate\u2019s Tax Cut Mostly Favors High-Income Households"},"content":{"rendered":"\n
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WASHINGTON, DC – JUNE 23: Senate Majority Leader John Thune (R-SD) speaks to reporters after leaving … More<\/span> the Senate Chambers in the U.S. Capitol. (Photo by Kayla Bartkowski\/Getty Images)<\/span><\/p>\n

<\/fbs-accordion>Getty Images<\/small><\/figcaption><\/figure>\n

The tax provisions of the Senate Finance Committee\u2019s draft budget bill would cut household taxes by an average of about $2,600 in 2026, slightly less than the House-passed bill, according to a new Tax Policy Center analysis.<\/p>\n

About 83% of households would have their taxes cut, compared to what they\u2019d pay if the 2017 Tax Cuts and Jobs Act expired as scheduled at the end of this year. However, like its House counterpart<\/a>, the bill would target most of its benefits to higher-income households.<\/p>\n

The Senate Finance Committee bill<\/a> makes scores of changes to the House version. In addition, it is likely to be revised before the chamber votes on the measure. Among the changes: Some increase in the cap on the state and local tax (SALT) deduction, which would provide additional benefits to high-income households. TPC\u2019s analysis does not include the bill\u2019s changes to Medicaid and Medicare.<\/p>\n

Who Gets The Benefits?<\/h2>\n

The highest-income 20% of households\u2014those making $217,000 or more\u2014 would receive about 57% of the benefit of the Senate tax cuts, while the top 5%, who make $460,000 and up, would get more than one-third.<\/p>\n

By contrast, the lowest-income 20% of households, who make about $35,000 or less, would get about 1.5% of the benefit and middle-income households would receive about 14%.<\/p>\n

On average, those low-income households would pay about $150 less than under current law, and their after-tax income would increase by less than 1%. Middle-income households would pay $1,750 less on average, about 2.2% of their after-tax income.<\/p>\n

High-income households would receive much more generous tax benefits. For example, the bill would reduce taxes for those making between about $460,000 and $1.1 million (the 95th <\/sup>to 99th income percentile) by about $18,000 or 3.8% of their after-tax income.<\/p>\n

As a share of after-tax income, that group would make out best. For example, the highest-income one percent of households would see their taxes cut by about $67,000 on average, or 3.1% of their after-tax income.<\/p>\n

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TPC’s analysis of the Senate Finance Committee’ version of the OBBBA<\/p>\n

<\/fbs-accordion>Tax Policy Center<\/small><\/figcaption><\/figure>\n

How The Bills Differ<\/h2>\n

Among the biggest differences:<\/p>\n