Average federal tax change by income group, Vermont, 2026

On July 4, President Trump signed into law the tax and spending “megabill” which makes permanent the provisions of the 2017 tax law that were set to expire and makes many additional changes beyond that. This analysis examines the tax provisions in the law and provides numbers generated with the ITEP microsimulation model.

Overall, the law favors the richest taxpayers and provides working-class Americans with relatively small tax cuts that will in many cases be more than offset by the import taxes, or tariffs.