Estimated tax savings from extending the Tax Cuts and Jobs Act, by income percentile, Vermont, 2026

The federal cuts to government benefits and services financed bigger tax breaks for the wealthiest Americans. The One Big Beautiful Bill Act (OBBBA) passed in July permanently extended and expanded many of the tax cuts from the Tax Cuts and Jobs Act of 2017. These new cuts will provide over $700 million in tax savings each year to the richest 20 percent of Vermonters. The top 1 percent will save an annual average of nearly $60,000, twice the earnings of a Vermonter working full time for minimum wage.