- "The Tax Cuts for Workers Act would cost the federal government $65.4 billion over the 2026-35 budget window, assuming no behavioral responses. Accounting for state and local tax impacts, which add 21% to the aggregate impact beyond the federal taxes, it increases net income for 10% of the population, with an average household increase of $59 ($590 per affected household). Households in the first and second income deciles would see the largest benefits ($95 and $91 respectively). The TCWA is projected to reduce poverty by 0.3% and the Gini index of income inequality by 0.05%. While it reduces marginal tax rates for the lowest earners, substitution effects from the higher marginal tax rates in the phase-out range combine with income effects to reduce labor supply and increase costs when applying CBO’s labor supply elasticities.\n",
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