Middle-Income Families Are Paying $1,700 More This Year While Wealthiest Come Out on Top

Middle-income families are paying about $1,700 more in taxes and other costs this year, including from the high price of gas, groceries and health care, according to a new analysis from the Institute on Taxation and Economic Policy. Meanwhile, only the top 1% of earners are paying $12,560 less this year.

The increases for typical consumers come after the Republican Tax Law cut taxes for the wealthiest earners and congressional Republicans did not extend health care tax credits, causing health insurance premiums to spike. The war in Iran and tariffs are also adding strain to Americans’ wallets. Michigan Reps. Tom Barrett (MI-07), John James (MI-10), and Bill Huizenga (MI-04) voted for the Republican Tax Law, against restoring the health care tax credits, and for a July budget that would fund the war.

“On a fixed income, there’s not much I can do when the prices of gas, groceries, and health care are going through the roof,” said Sheila, a Social Security recipient in Michigan’s 7th District. “I worked hard my whole life but it feels like that isn’t even enough anymore. It’s unfair that the wealthiest are getting tax cuts while people like me are paying more for decisions made in Washington.”

Michigan families shouldn’t have to choose between filling the gas tank, buying groceries and paying for health care coverage, but with costs steadily rising, middle-class households are bearing the brunt while the top 1% come out ahead.