The combination of new tariffs announced by the Trump administration in 2025 and new policies implemented in the One Big Beautiful Bill Act (OBBBA) will cause Americans’ incomes after taxes and transfers to decrease across the board in 2027, relative to 2025. Indeed, only the top 1 percent of U.S. households by earnings will see an increase. Despite some lawmakers’ attempts to rebrand the bill as a “working families tax cut,” middle-income households will experience a net income decrease of 1.2 percent, or $1,300, in 2027. Meanwhile, the top 1 percent will receive a net income increase