Trump’s tax breaks in numbers: state by state analysis of three income groups

New state-by-state research by InvestorsObserver finds that President Trump’s tax bill raises taxes on the poorest families in multiple states, even as it delivers five-figure cuts to the wealthiest households.

 

The report, based on nonpartisan analysis by the Institute on Taxation and Economic Policy, reveals strong disparities: in Montana alone, the richest residents receive tax breaks 2,194 times larger than the poorest taxpayers – enough to cover nearly a year of mortgage payments versus two gallons of milk.

 

Across affected states, this turns a promise of “tax relief for all Americans” into $10,000+ annual savings for those already at the top, while the poorest families pay more.

 

 

Key findings:

●       In 9 states, the poorest Americans will actually pay more taxes.

●       The near-wealthy save over 2,000 times more than the poor.

●       Middle income tax savings won’t cover one month’s mortgage in 8 states.

●       Where you live matters as much as the paycheck: West Virginia’s middle class gets 2 months of mortgage covered by the tax breaks, while California’s gets 3 weeks.

●       In high‑cost states like New Jersey, California and New York, the wealthiest households get tax cuts of around $20,000 while low‑income families get at most a few hundred dollars.

 

“This is a reversal of the basic promise of tax relief: help those who need it most. The economic implications extend beyond individual bank accounts. When wealthy households receive $20,000 tax breaks, much of that money gets saved or invested, not spent in local economies,” explained Sam Bourgi, senior analyst at InvestorsObserver. “When working families get $100, or lose $150, they’re forced to cut back on essentials. Less money for groceries means less revenue for local stores. Less mortgage coverage means more families at risk of foreclosure.”

 

Read the full report here.