The tax provisions of the budget bill being debated in the Senate would be more regressive than the Finance Committee version, says a new Tax Policy Center analysis.
The tax provisions of the budget bill being debated on the Senate floor would be even more regressive than the version drafted by the Senate Finance Committee, according to a new Tax Policy Center analysis. On average, the Senate measure released on June 28 would cut 2026 taxes by about $2,900, up about $250 from the Finance Committee’s version. But the current Senate version of the One Big Beautiful Bill Act would distribute most of those additional tax cuts to the highest-income households. The main reason: the way it treats the state and local tax deduction.Comparing The Plans
The Senate bill would cut taxes by an average of $12,500, or 3.4% of after-tax income, for those making $217,000 or more, the highest-income 20% of households. That’s about $1,500, or 0.4% of after-tax income, more than they’d get under the Finance panel’s plan.
Those making between $460,000 and $1.1 million (the 95th-99th income percentile) would get an average tax cut of $21,000, raising their after-tax incomes by 4.4%. That would be roughly identical to the House version but nearly $3,000, or 0.6% of after-tax income, more generous than the Finance measure.
Similarly, the bill on the Senate floor would cut taxes by an additional $8,000 on average for those who make $1.1 million or more, the top 1 percent of households—and an extra $40,000 for those who make $5 million or more, the top 0.1%—compared to the Finance bill.
Even with those added tax cuts, the current Senate bill remains slightly less generous than the House measure for the highest-income households.
While those high-earners get much more than in the Finance panel’s measure, the same can’t be said for low- and middle-income households.
