WASHINGTON, D.C. – Data provided by the Internal Revenue Service has proven that the tax cuts provided by the 2017 tax reform law championed by former President Donald Trump – which many Democrats claimed disproportionally favored the very wealthy – have, in reality, benefitted working, middle-class U.S. citizens the most.
According to a new report by The Hill, income data published by the IRS illustrates that Americans in all tax brackets experienced tax cuts from the Republicans’ tax reform law, but that middle-class individuals and families experienced the largest cut to their taxes of all, in contrast to “the one percent” as many Democrats have maintained.
In 2018 – the first year that the tax reform law went into effect, and the most recent year that income tax data relating to the law was available – filers with an adjusted gross income (AGI) of $15,000 to $50,000 received, on average, a tax cut of 16 or 26 percent.
Meanwhile, filers in the $50,000 to $100,000 range experienced a tax cut of between 15 to 17 percent, and those in the $100,000 to $500,000 range received tax cuts between 11 or 13 percent. No one earning $500,000 or over received an average tax cut over 9 percent, and those earning $1 million or more received cuts averaging less than 6 percent.
In addition, the IRS data indicates that those in higher income brackets paid higher taxes overall in 2018 – again, the year that the reform law went into effect – than they had the year prior.
Overall, the report by The Hill indicates that the Republican tax reform law that Trump supported did pretty much exactly what it promised it would do, meaning it lowered taxes along all income levels – especially for middle-income filers – and helped to drive economic growth.
There remains the possibility that President Joe Biden’s Build Back Better (BBB) Act, which recently passed in the House and is currently being considered in the Senate, could in some way undo those tax benefits. The ambitious spending bill plans to pay for itself by increasing IRS enforcement and reforming tax laws, especially when it comes to the rich, who Democrats claim were previously given huge tax breaks by Republicans; a claim that has now been disproven by the IRS itself.
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