Middle Class Benefits Far More than the Wealthy

Permanent tax relief for families means millionaires pay a larger share of the tax burden and those who need it most see the largest percentage drop in their taxes.

 

Low- And Middle-Income Earners Benefit Most From Permanent Tax Relief

If Congress prevents the looming massive tax increase in 2026, the Joint Committee on Taxation found: 

- Taxpayers with incomes under $50,000 will see their share of the total federal tax burden drop from 4.2% to 3.9%.

- Those with less than $10,000 in income will see their taxes slashed by more than half. 

- Average taxpayers with incomes between $10,000 and $20,000, a group that frequently claims refundable tax credits, will have no tax liability and receive an additional refund.

- Millionaires will actually see their share of the total federal tax burden rise to 20.2%, compare to 19.6% if tax relief expires.

- While taxpayers will enjoy an average 5.2% cut in their taxes, taxpayers that earn over $1 million will see a below-average reduction of 2.3%.

*See https://www.jct.gov/publications.html?func=startdown&id=5137.