Trump is giving the U.S. economy a $65 billion tax-refund shot in the arm, mostly for higher-income people, BofA says

Trump is giving the U.S. economy a $65 billion tax-refund shot in the arm, mostly for higher-income people, BofA says

“The consumer divide is about to get deeper,” BofA senior U.S. economist Aditya Bhave wrote on Wednesday.

Finance | Itemizing Trump Tax Deductions for 2025

Trump’s One Big Beautiful Bill Act (OBBBA) passed Congress and now figures into your 2025 tax returns with blatant Schedule A tax deductions and non-conforming Schedule CA deductions. Federal and CA deductions phase out with high income: OBBBA limits itemization by roughly 2/37 of taxable income above the 37% bracket—mostly $500K+ earners. Taxes really are simpler and cheaper for middling earners protected in 2026 by higher standard deductions o…