Trump's Iran conflict becomes de facto 'tax increase' on struggling Americans: report

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.