Trump Tax Bill Benefits Vary by Income, Experts Say

According to CNBC, policy experts say President Donald Trump's tax legislation has benefited Americans unevenly, even as Republicans promote the bill ahead of the midterm elections. The law, also called the Working Families Tax Cuts, made permanent Trump's 2017 tax changes and added new deductions for tip income, overtime earnings, seniors and auto loan interest, along with a larger federal SALT deduction limit for itemizers. Treasury Secretary Scott Bessent told the House Committee on Financial Services this week that the legislation delivered tax relief directly to millions of low- and middle-income Americans. He also said more than 64 million tax returns claimed at least one of the bill's signature new tax cuts. White House spokesman Kush Desai said tens of millions of Americans have used at least one of the provisions. The Tax Foundation said 62% of Americans would have faced tax increases in 2026 if the 2017 tax cuts had expired, and Garrett Watson said most of the benefit came from making those provisions permanent rather than from the new deductions. The average tips deduction was more than $7,000 and the average senior deduction was more than $7,500, according to Treasury data. The SALT deduction cap rose to $40,000 for 2025 from $10,000 in 2024, and Watson said it is most beneficial to upper-middle- to upper-income earners because it phases out at $500,000. As of May 8, the average individual tax refund was $3,276 for the 2026 filing season, up 11.5% from roughly the same point last year, according to IRS data.