Report: average American to receive $3,752 tax cut in 2026 due to OBBBA

Opinion:

The recently released analysis predicting an average tax cut of $3,752 for Americans in 2026 due to the One Big Beautiful Bill Act (OBBBA) is emblematic of the ongoing struggles surrounding tax policy in the United States. This tax legislation, with roots in the 2017 Tax Cuts and Jobs Act (TCJA) championed by the Trump administration, raises essential questions about the nature of fiscal policy, its beneficiaries, and the broader economic implications for the working and middle classes. The promise of tax cuts has often been presented as a boon for the average American; however, a closer examination reveals a more complex narrative, particularly when we consider the historical context and the varying impacts on different demographic groups.

One of the hallmarks of tax cuts in the U.S. has been their disproportionate benefits to wealthier individuals and corporations. The TCJA of 2017, for instance, primarily favored high-income earners and large corporations, significantly reducing their tax burdens while offering limited relief to low- and middle-income families. This pattern appears to persist in the OBBBA, where the most substantial tax benefits are likely to be concentrated in wealthier states and urban centers, as indicated by the projected cuts in states like Wyoming and Washington. This geographic disparity raises concerns about the fairness of such tax policies, which often leave behind rural areas and low-income communities that could benefit more from targeted fiscal support rather than broad-based tax cuts.

Furthermore, the temporary nature of certain provisions within the OBBBA, set to expire by 2030, brings into question the sustainability of these tax cuts. While the initial tax reductions are appealing, they are not designed to address the systemic issues of income inequality and the growing wealth gap in the United States. The Congressional Budget Office (CBO) warns that the estimated $4.1 trillion reduction in federal revenue over the next decade will exacerbate the national debt, which has already surpassed $37 trillion. This trajectory raises significant concerns about the future fiscal health of the country and the potential for increased austerity measures that could hurt vulnerable populations the hardest.

In the broader context of social justice, tax policy should be viewed through the lens of equity and accountability. The notion that tax cuts will automatically translate into job creation is a long-standing argument that has not consistently held true. While proponents of the OBBBA claim that these cuts will generate nearly a million full-time jobs, history shows that many corporations have failed to reinvest their tax savings into their workforces. Instead, significant portions of these savings often go to stock buybacks and executive bonuses, benefiting shareholders rather than the average worker. This disconnect between tax policy and actual economic benefits for the working class underscores the need for a more equitable approach to taxation that prioritizes community investment and public goods.

Finally, it is vital to recognize that the promise of tax cuts must be critically assessed against the backdrop of the social welfare state and the role of government in addressing inequality. Historical shifts toward neoliberal economic policies have led to the erosion of social safety nets, which are essential for protecting the most vulnerable among us. Policymakers must grapple with the reality that a well-functioning democracy should strive for a tax system that not only raises revenue but also promotes social equity and provides for the common good. As we consider the implications of the OBBBA and similar legislation, we must advocate for policies that prioritize support for working families, health care, education, and infrastructure rather than perpetuating cycles of wealth accumulation among the few.

In conclusion, while the average tax cut of $3,752 may appear attractive at first glance, a deeper analysis reveals a troubling landscape of inequality, unsustainable fiscal practices, and a failure to address the underlying issues plaguing American society. Engaging in these discussions with a focus on equity, social justice, and shared prosperity is essential for fostering a more inclusive economic environment that genuinely benefits all Americans. As we move forward, it is imperative to challenge the narratives surrounding tax cuts and advocate for policies that uplift the working class and build a more equitable society.

Action:

The recent news surrounding the One Big Beautiful Bill Act (OBBBA) and its implications for average American taxpayers is a pivotal moment in the ongoing debate about fiscal policy and economic justice in the United States. The promise of an average tax cut of $3,752 by 2026, as indicated by the White House and supported by the nonpartisan Tax Foundation, heralds a significant shift in the economic landscape. However, while tax cuts can be appealing, they bring with them a set of complexities that merit careful scrutiny. Notably, we must consider the historical context of tax policy in the U.S. and the potential long-term consequences of such cuts, especially concerning the increasing national debt and the implications for public services.

Historically, tax policy has often been used as a tool to redistribute wealth and provide essential services to the citizenry. The OBBBA, by making permanent the tax cuts established in the 2017 Tax Cuts and Jobs Act, raises questions about who truly benefits from such fiscal maneuvers. While proponents argue that these tax cuts stimulate economic growth and job creation—claiming 938,000 new jobs will emerge—it's essential to interrogate the sincerity of these claims. The argument that tax cuts for corporations and wealthy individuals will inevitably lead to broader economic benefits has been a recurring theme in conservative rhetoric, yet evidence suggests that such policies often exacerbate income inequality and fail to deliver on their promises of widespread prosperity.

Moreover, the implications of raising the national debt by an estimated $4.1 trillion by 2034 are profound. As the U.S. grapples with a national debt exceeding $37 trillion, the sustainability of such fiscal policies comes into question. The burden of debt often falls disproportionately on working families and marginalized communities, who rely on government programs and services that may be adversely affected by reduced federal revenue. As the temporary tax provisions expire, the average tax cut is projected to dwindle, raising concerns about the long-term viability of this financial strategy. This cycle of short-term gain at the expense of long-term stability must be critically examined, particularly in light of the challenges posed by climate change, healthcare access, and education funding.

So, what can Americans do in response to these developments? First and foremost, engaging in informed dialogue about the implications of tax policy is crucial. It is essential to advocate for a tax system that prioritizes investment in public goods and services that benefit society as a whole. Grassroots organizing and community engagement can help amplify voices that call for a progressive tax structure that ensures the wealthiest individuals and corporations contribute their fair share. Additionally, supporting policies that aim to address income inequality—such as increased funding for education, healthcare, and infrastructure—can help counterbalance the negative effects of tax cuts on public services.

Furthermore, it is vital to hold elected officials accountable for their fiscal decisions. Citizens should demand transparency regarding how tax cuts translate into tangible benefits for everyday Americans, particularly in light of the projected job growth and economic stimulus claimed by proponents of the OBBBA. Engaging in advocacy efforts, such as contacting representatives, participating in town hall meetings, and utilizing social media platforms to raise awareness, can exert pressure on decision-makers to prioritize the needs of the many over the interests of the few.

In conclusion, while the promise of tax cuts may appear enticing on the surface, it is crucial to engage in a deeper analysis of their potential repercussions. By grounding our discussions in historical context, advocating for equitable tax policies, and actively participating in civic engagement, we can harness the power of informed dialogue to challenge the prevailing narratives surrounding fiscal policy. In doing so, we can work towards a more just and equitable society where economic growth benefits all Americans, not just a privileged few.

To Do:

Analyzing the implications of the One Big Beautiful Bill Act (OBBBA) requires a proactive approach to ensure that the benefits of the tax cuts are equitably distributed and that the long-term fiscal health of the country is maintained. Here’s a detailed list of actions we can personally take to engage with this issue.

### What Can We Personally Do About This?

1. **Educate Ourselves and Others**: - Stay informed about the specifics of the OBBBA and its implications for various demographics. - Share insights with friends, family, and community members to foster discussions about tax policy and its impact on economic inequality.

2. **Advocate for Fair Tax Policies**: - Engage with local representatives about the need for tax policies that benefit all, not just the wealthiest. - Promote policies that address the potential long-term fiscal challenges posed by increased national debt.

3. **Support Grassroots Movements**: - Join or support organizations advocating for tax reforms that focus on wealth redistribution and increased social services.

### Exact Actions We Can Personally Take

1. **Sign Petitions**: - **Petition for Fair Taxation**: Look for online petitions that advocate for progressive tax reforms. For example, sign a petition on platforms like Change.org that calls for closing tax loopholes for corporations and the wealthy. - Example petitions can include: - "Tax the Rich to Fund Our Schools" - available on Change.org or MoveOn.org.

2. **Contact Elected Officials**: - **Write to Your Senators and Representatives**: Express your concerns about the long-term effects of the OBBBA on national debt and economic inequality. - **Find Your Representatives**: Use the website [congress.gov](https://www.congress.gov) to find contact information for your elected officials. - **Example Contact**: - Senator Elizabeth Warren (MA) - Email: senator_warren@warren.senate.gov - Senator Sherrod Brown (OH) - Email: senator_brown@brown.senate.gov - House Representative Alexandria Ocasio-Cortez (NY-14) - Email: ocasiocortez.house.gov/contact

- **USPS Mailing Addresses**: - Senator Warren: 2400 JFK Federal Building, 15 New Sudbury Street, Boston, MA 02203 - Senator Brown: 601 W Superior Ave #1400, Cleveland, OH 44113 - Rep. Ocasio-Cortez: 144 E 12th St, New York, NY 10003

- **What to Say**: - Express your support for tax reform that prioritizes middle and lower-income families. - Encourage them to consider the implications of increasing the national debt and advocate for sustainable fiscal policies.

3. **Participate in Town Halls and Local Meetings**: - Attend local government meetings or town halls where budgetary concerns and tax policies are discussed. - Voice your opinions and ask questions about how local and federal tax policies are impacting your community.

4. **Support Local Economic Initiatives**: - Contribute to or volunteer with local organizations that strengthen economic opportunities for low-income families, such as food banks, job training programs, or community development groups.

5. **Engage on Social Media**: - Utilize platforms like Twitter, Facebook, and Instagram to spread awareness about the impacts of the OBBBA and advocate for equitable tax policies. - Use hashtags related to tax reform, economic equality, and fiscal responsibility to increase visibility.

6. **Join or Support Advocacy Groups**: - Become a member of organizations that focus on fiscal responsibility and fair taxation, such as the Institute on Taxation and Economic Policy (ITEP) or the Center for American Progress. - Participate in campaigns and initiatives they promote.

By taking these actions, we can collectively influence the conversation around tax policy and ensure that it serves the best interests of all citizens while maintaining fiscal responsibility.