Trump's One Big Beautiful Bill Act (OBBBA), extends the 2017 Tax Cuts and Jobs Act and adds new tax rules. The Tax Policy Center projects an average tax savings of $2,900 in 2026, benefiting 85% of households. However, nearly 60% of the benefits will go to the top 20% of earners. By 2030, the percentage of households seeing a tax cut will drop to 70%, with 10% facing tax increases. Specific benefits include provisions for tipped workers to deduct a portion of their income from tips for federal taxes.
An analysis from the Tax Policy Center shows the new law would reduce taxes for Americans by about $2,900 on average in 2026, with some 85% of households receiving a tax cut in 2026.
Notably, almost 60% of the tax benefits would go to those in the top quintile, or one-fifth of earners, with incomes of $217,000 or more.
Overall, about 4% of households would see their taxes go up in 2026; that percentage would increase to about 10% in 2030.
The new bill offers a number of tax benefits by extending the 2017 Tax Cuts and Jobs Act, making many changes permanent while introducing new tax rules.
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