Trump tax refunds are eclipsed by gasoline and tariff costs

The average American in all income groups except the richest 5 percent is paying higher taxes in 2026 than they did last year. This increase follows the passage of the One Big Beautiful Bill Act (OBBBA), which provided tax breaks for tips, overtime, car loan interest, and seniors. These provisions increased the average tax refund by roughly $350. The gain is offset by other administration policies. An unauthorized Iran war caused gasoline price spikes that increased average annual gasoline costs by $857. Global tariffs cost families an average of $1,745 before the Supreme Court struck them down. Additionally, Section 122 tariffs cost the average household between $650 and $780 if temporary. The OBBBA also terminated the Enhanced Premium Tax Credit for Affordable Care Act enrollees and cut Medicaid. The combined impact of these policies is a tax increase for the average American in all income groups except the richest 5 percent.