Donald Trump’s recent tax legislation may provide substantial financial benefits to higher earners while adversely impacting lower-income Americans, according to a report from the Congressional Budget Office. All of this analysis just scratches the surface to show there’s a huge inequity in tax savings. In fact, the wealthier you are the more you benefit from these tax cuts.
It is expected that by 2035, average tax cuts will be up a staggering $3,301. Most of this increase will come from inflation’s effect on permanent cuts. Without any adjustment, this benefit will fall to $2,505 by 2030. This decline comes at the same time that some of the targeted tax breaks such as the $40,000 cap on the federal deduction for state and local taxes (SALT) begin to sunset. This change highlights how ephemeral some tax advantages are under the existing laws.
In rural counties such as Loup County, Nebraska, taxpayers would get an average tax increase of $824 in 2026. The big winners will be the top earners. In 2025 dollars, that means they could be getting an average tax cut of $13,600. At the same time, the lowest bottom percentile would see an annual decrease in resources of $1,200. This growing inequality is a troubling indicator of the long-term impact of Trump’s policies on those in lower-income brackets and the middle-class.
Trump’s legislation has brought us trillions in tax breaks for all—except everyone is not benefiting equally. Some counties and states are likely to benefit from even larger tax savings. For example, Teton County in Wyoming, which includes the affluent area of Jackson Hole, could see an average tax cut of $37,373 per taxpayer in 2026. Pitkin County, Colorado, home to Aspen, would experience one of the largest tax losses. That’s an average of $21,363 each taxpayer will save this year. Retirement-rich Summit County, Utah, where the tourism capital of Park City lies, would have an average benefit of $14,537.
On the whole, each individual taxpayer will save an average of $3,752 by 2026. This is the conclusion of a Tax Foundation analysis. Yet these figures do not reflect the huge disparity depending on personal factors, including status and ZIP code. States with the largest average tax cuts per wealthy households are Wyoming ($5,374), Washington ($5,373) and Massachusetts ($5,138). Florida and the District of Columbia are next in line with averages of $4,998 and $4,922, respectively.
The potential shortfall for lower-income Americans is largely attributed to proposed cuts to vital assistance programs such as Medicaid and the Supplemental Nutrition Assistance Program (SNAP). From 2026 through 2034, federal income taxes would drop, resulting in a net increase in household resources. For those heavily dependent on government relief, the financial outlook is not as rosy.
As the legislation is implemented in the upcoming years, the impact of this policy on various income levels will be made clearer. Higher earners and lower-income households face significantly different effects. This striking difference is contributing to continuing discussions over the equity of the tax code and the equitable distribution of financial relief.