But a recent report from Deutsche Bank indicates many Americans will see that boost deflated as gas prices rise, and those on the lower end of the income spectrum will likely say goodbye to their increased take home pay by the end of the year.
Gas prices have risen this month. And if they rise $1.05 per gallon off their current marks, it would eat the disposable income gains of last year’s tax cut legislation, according to Deutsche Bank analysis.
The national average is now $2.76 a gallon, according to GasBuddy, which is close to the most recent high in mid-2015. A $1 gain per gallon would represent a full return to the soaring prices of 2014, when the average price for a gallon approached $3.70. From 2011 to mid-2014, prices were at this level.
While a $1 increase would be required to cancel out benefits for families of all income levels, lower-income families’ gains would be wiped out much more quickly.