Trump's Iran conflict becomes de facto 'tax increase' on struggling Americans: report
Source: Raw Story · Bias: Far Left
Summary
President Donald Trump's military actions in Iran are effectively functioning as a hidden tax on American households, economists warn, as soaring energy costs threaten to erase anticipated benefits from larger tax refunds this filing season.Americans are poised to receive bigger refunds than last year, with the average federal tax refund reaching $3,742 as of late February—about 10.6% higher than 2025. However, the economic fallout from the Iran conflict is rapidly negating that windfall, according to a new report.Since the U.S. military actions in Iran began, oil prices have skyrocketed, sending gas and diesel costs surging. The average price of unleaded gasoline jumped to $3.64 per gallon on Friday, roughly $0.72 higher than the previous month's average. Mortgage rates have also climbed sharply to 6.41% for a 30-year fixed-rate loan, up from 5.9% before the conflict."The Iran war acts like a tax increase on the consumer, except nobody voted for it," said Paul Dietrich, chief investment strategist at Wedbush Securities.The burden falls disproportionately on lower-income Americans, who spend a larger percentage of their budgets on fuel and energy. As households redirect refund money toward gas and groceries rather than discretionary spending, the broader economy loses the boost that tax refunds typically provide.Experts caution that while tax refunds could help insulate consumers from immediate shocks, the economic damage from elevated energy costs and inflation pressures will likely persist throughout 2026, undermining household purchasing power across income levels.Read the full report here.
Related Coverage
- Melania gives Congress private deadline as she works around Trump's team: report (Far Left — Raw Story)
- REPORT: Acting DNI Bill Pulte Fires Dozens of ODNI Staff for Politicizing Intelligence, Insubordination, Gross Misconduct (Far Right — The Last Refuge)
- Trump announces pardons for pollution violators prosecuted for "fixing their car" (Center — Politics - CBSNews.com)
- Trump Pardons Six People Pursued for ‘Fixing Their Car’ (Center — Bloomberg Politics)
- Sources: Trump likely to pardon pollution violators; weighing clemency for Diddy (Center — Politics - CBSNews.com)
- What Is Iran Building Now in the Zagros Mountains? (Right — RedState)
- Fox host warns Trump will pay for his 'breathtaking' corruption (Left — Alternet.org)
- Trump Scores Appeals Court Victory in Battle Over National Park Historical Displays (Right — RedState)
More Headlines From March 14, 2026
- SWAT team kills Jasmine Crockett's fugitive security guard after suspect pulls gun on police (Right)
- Live updates: Trump presses on with Iran fight, pushes for help to open Strait of Hormuz (Center)
- Sheriff alerted Michigan synagogue to potential rise in threats 2 days before attack (Right)
- Thug who brutally raped 94-year-old in broad daylight had just been released after other rape charge was dropped, police say (Right)
- TGP’s Jim Hoft Joins Grant Stinchfield on RAV to Discuss Probability of John Thune Passing Save America Act (VIDEO) (Far Right)






