IRS data proves Trump tax cuts benefited middle, working-class Americans most

[Highmark]

https://thehill.com/opinion/finance/584190-irs-data-prove-trump-tax-cuts-benefited-middle-working-class-americans-most

President Biden and congressional Democrats’ Build Back Better (BBB) Act is now in the hands of the Senate. That legislative body’s 50-50 partisan split will undoubtedly make the bill’s passage difficult.

In order for BBB to become law, Democratic Senate leadership will need to convince moderates such as Sens. Kyrsten Sinema (D-Ariz.) and Joe Manchin (D-W.Va.) that the legislation’s $2.4 trillion price tag can be offset by expanding the IRS and its enforcement efforts while imposing substantial tax reform measures.

Congressional Democrats have argued that one of the best ways to pay for the legislation is to raise taxes on wealthy households, which, according to many on the left, have benefited disproportionately and unfairly from the 2017 tax reform law passed by Republicans and signed by former President Trump. The latest data, however, proves that this claim is pure mythology.

Income data published by the IRS clearly show that on average all income brackets benefited substantially from the Republicans’ tax reform law, with the biggest beneficiaries being working and middle-income filers, not the top 1 percent, as so many Democrats have argued.

A careful analysis of the IRS tax data, one that includes the effects of tax credits and other reforms to the tax code, shows that filers with an adjusted gross income (AGI) of $15,000 to $50,000 enjoyed an average tax cut of 16 percent to 26 percent in 2018, the first year Republicans’ Tax Cuts and Jobs Act went into effect and the most recent year for which data is available.

Filers who earned $50,000 to $100,000 received a tax break of about 15 percent to 17 percent, and those earning $100,000 to $500,000 in adjusted gross income saw their personal income taxes cut by around 11 percent to 13 percent.

By comparison, no income group with an AGI of at least $500,000 received an average tax cut exceeding 9 percent, and the average tax cut for brackets starting at $1 million was less than 6 percent. (For more detailed data, see my table published here.)

That means most middle-income and working-class earners enjoyed a tax cut that was at least double the size of tax cuts received by households earning $1 million or more.

What’s more, IRS data shows earners in higher income brackets contributed a bigger slice of the total income tax revenue pie following the passage of the tax reform law than they had in the previous year.

In fact, every income bracket with filers earning $200,000 or more increased its tax burden in 2018 compared to 2017, and every income bracket with a top limit lower than $200,000 paid a smaller proportion of the total personal tax revenue collected.

That means that Republicans’ tax reform law resulted in the tax code becoming slightly more progressive — the exact opposite of what Democrats have claimed over the past four years.

The IRS data further shows that the tax reform law — which included a variety of business tax cuts, including a large reduction in the corporate income tax rate — spurred economic mobility.

Every income bracket with a top level lower than $25,000 experienced a reduction in its number of filers, and every income bracket above $25,000 increased in size, with the biggest gains occurring in the brackets with a floor of at least $100,000.

The fact is, Republicans’ 2017 tax reform law did exactly what was promised: It lowered taxes for all income groups, provided the greatest benefits for middle-income households, and spurred economic growth that helped reduce poverty and improve prosperity.

It would be a grave mistake for Democrats to eliminate key parts of this important legislation.

[Mainecat]

Those were temporary cuts. Corporate America got permanent cuts.

[EvilBird]

3 minutes ago, Mainecat said:

Those were temporary cuts. Corporate America got permanent cuts.

Keep crying Boomer. 

[Sleepr2]

4 minutes ago, Mainecat said:

Those were temporary cuts. Corporate America got permanent cuts.

We’re they cuts or not?   You pathetic hack 

 

A MarketWatch analysis of IRS statistics — which shows tax-filing figures through late November 2019 — revealed:

 

• Americans had $1.552 trillion in tax liabilities last year, compared with $1.619 trillion in total tax liabilities at the same point a year prior. That’s a drop of 4% on a year-over-year basis.

 

• The double-digit percentage decreases in average tax liability started with a 12.5% drop for people making $15,000 to $20,000 a year. Double-digit percentage reductions in liability continued for people making $25,000 to $30,000 (down 11.2%) through $100,000 to $200,000 (down 10.96%).

 

• Taxpayers making between $40,000 and $50,000 a year had the largest fall in average tax liability, a 14.5% drop, while high-end households making between $250,000 and $500,000 had the second largest decrease, with a 14.4% liability reduction.

 

• Taxpayers making at least $1 million had a 4.3% decrease in average tax liability.

[Sleepr2]

1 minute ago, EvilBird said:

Keep crying Boomer. 

He’s a tax dodger, in addition to being a pathological liar.

[racer254]

Congressional Democrats have argued that one of the best ways to pay for the legislation is to raise taxes on wealthy households, which, according to many on the left, have benefited disproportionately and unfairly from the 2017 tax reform law passed by Republicans and signed by former President Trump. The latest data, however, proves that this claim is pure mythology.

Income data published by the IRS clearly show that on average all income brackets benefited substantially from the Republicans’ tax reform law, with the biggest beneficiaries being working and middle-income filers, not the top 1 percent, as so many Democrats have argued.

Edited December 7, 2021 by racer254

[Mainecat]

The cuts are over in 2025 but go on forever for the wealthy.

This is a fact.

Edited December 7, 2021 by Mainecat

[steve from amherst]

1 minute ago, Mainecat said:

The cuts are over in 2025 but go on forever for the wealthy.

This is a fact.

Well if democrats are in charge in 2025 , why dont they just extend them?

[SkisNH]

47 minutes ago, Mainecat said:

Those were temporary cuts. Corporate America got permanent cuts.

Biden could extend them....will he?

[steve from amherst]

Yet the bill dems are trying to pass now will give back the wealthy their deductions for local and state taxes.

[Sleepr2]

41 minutes ago, steve from amherst said:

Well if democrats are in charge in 2025 , why dont they just extend them?

 

40 minutes ago, steve from amherst said:

Yet the bill dems are trying to pass now will give back the wealthy their deductions for local and state taxes.

Don’t confuse him with reality.

[Deephaven]

Not sure where that data is from.  Obama raped me.  Trump took it one step further although nowhere near as bad.  I believe the lower levels and help it provided as I've seen it confirmed but there is something askew.  Again, I got absolutely butt fucked by Obama.

[SkisNH]

The LLC pass through helped me....still pay through the nose. 

[racer254]

I just want him to show a democrat tax cut that did anything close to what trump did.

 

[Deephaven]

Way easier to show the opposite.  

[racer254]

Just now, Deephaven said:

Way easier to show the opposite.  

please go ahead.

[Deephaven]

Just now, racer254 said:

please go ahead.

Ha, from personal experience alone that is obvious.  Clinton and Obama raped my ass.  Still hurts.

[Ez ryder]

10 hours ago, Mainecat said:

The cuts are over in 2025 but go on forever for the wealthy.

This is a fact.

Your cheering for more spending is fucking insane. You understand at today's rates just servicing the debt we have is almost a billion bucks a day. 

But yeah let's borrow another 2.5 trillion . And you say you care about the poor and working class lmfao we ate spending more just servicing the interst on the debt than all SS disability and food programs combined . And now there is talk on interest going up . What do you think just 1 point is going to to ? But yeah let's just add another 2.5 trillion .

Your heros 

Real social warriors I tell you lol

Edited December 8, 2021 by Ez ryder

[Ez ryder]

10 hours ago, SkisNH said:

Biden could extend them....will he?

Lol 😆 

[Zambroski]

I love the Dems:  “we’re gonna use a good chunk of this ridiculous bill to expand IRS agents to pay for this….by squeezing middle class Americans who got any type of tax cut under Drummmphh!”

Fucking losers.

[Zambroski]

Also, a big thanks again to MC who is proving that he is a good face of the libtwat party by being stupid….and getting his info from liars.

[CFM]

56 minutes ago, Zambroski said:

Also, a big thanks again to MC who is proving that he is a good face of the libtwat party by being stupid….and getting his info from liars.

He’s gotta be in the audience of this commercial. Lol

 

[Zambroski]

27 minutes ago, CFM said:

He’s gotta be in the audience of this commercial. Lol

 

The literal representation of liberals can’t be done much better than this classic:

 

 

[Mainecat]

21 hours ago, Mainecat said:

Those were temporary cuts. Corporate America got permanent cuts.

 

20 hours ago, Mainecat said:

The cuts are over in 2025 but go on forever for the wealthy.

This is a fact.

 

20 hours ago, Mainecat said:

The cuts are over in 2025 but go on forever for the wealthy.

This is a fact.

My three responses to the thread topic are above.

Someone point out where I was wrong….and stay on subject…….otherwise shut the fuck up.

[Sleepr2]

31 minutes ago, Mainecat said:

 

 

My three responses to the thread topic are above.

Someone point out where I was wrong….and stay on subject…….otherwise shut the fuck up.

Can Biden extend them?