Even as Democrats are licking their wounds for failing to pass their multi-trillion dollar spending mess, we’ve got new evidence of the 2017 tax reforms bearing fruit.
Justin Haskins, director of the Socialism Research Center at The Heartland Institute, has the scoop in The Washington Examiner:
A careful analysis of detailed tax data from 2017 and 2018, the first year the TCJA went into effect and the most recent year for which detailed IRS income data are available, reveals that over just one year, households with an adjusted gross income of $15,000 to $50,000 saw their total tax bills cut by an average of 16% to 26%, with most filers enjoying at least an 18% tax cut. Similarly, filers earning between $50,000 and $100,000, one of the largest groups of taxpayers, experienced a 15% to 17% tax cut, on average, from 2017 to 2018.
Higher-income households also experienced sizable tax cuts, but not nearly as large as the tax reductions provided by the law to working and middle-class families. Those with AGIs of $500,000 to $1 million, for example, had their taxes cut by less than 9%, and filers earning $5 million to $10 million received a 3.4% cut, the lowest of any bracket provided by the IRS.
The data also show that wealthier filers ended up providing a slightly higher proportion of total personal income tax revenue in 2018 than they did in 2017. In 2017, filers earning $500,000 or more provided 38.9% of all personal income tax revenues. In 2018, the same group provided 41.5% of revenues.
That means the Trump-GOP tax cuts made the income tax code more progressive than it had previously been. That’s a remarkable finding. After all, Democrats have spent the past few years insisting the TCJA provided a huge windfall to the richest income brackets while leaving everyone else behind!
So to review: smartly-structured tax cuts help poor and middle-class families.
Meanwhile, tax-and-spend liberals want to come back in January and give trillions of dollars in subsidies for new spending programs, without having any type of means testing, work requirements, or other accountability controls to actually make sure they benefit the most vulnerable. Sounds pretty Grinchy.