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Tax Refund Disparities Widen in K-Shaped Recovery

2/12/2026

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Story summary
  • The U.S. economy's K-shaped recovery widens tax refund disparities, with higher-income households benefiting more from recent changes.
  • The One Big Beautiful Bill Act, signed in July 2025, extends tax cuts and raises average refunds by over $700.
  • Top 5% households gain the most, while those earning $33,000 or less see minimal increases around $18, raising concerns about widening inequality.