Is the middle class really better off with lower taxes?
The reality is, the middle class has seen strong tax reduction, higher take home pay, more jobs and more economic opportunity. Alex Hendrie is director of tax policy at Americans for Tax Reform, a free market advocacy organization dedicated to lower taxes and limited government.
Is Trump’s tax plan a tax cut for the wealthy?
Trump, meanwhile, in an interview with Mike Huckabee on Trinity Broadcasting Network on Oct. 7, described the plan as having the opposite effect: a benefit for the middle class and not a tax cut for the wealthy.
Who gets the biggest tax cuts in 2027?
Those with the very highest incomes would receive the biggest tax cuts,” the TPC report says. “The tax cuts are smaller as a percentage of income in 2027, and taxpayers in the 80th to 95th income percentiles would, on average, experience a tax increase.”
How much will the tax cuts add to revenue?
Proponents of the law promised that it would add $1.8 trillion in new revenue. That would more than pay for the $1.5 trillion cost of the tax cuts themselves, according to an analysis by the U.S. Department of Treasury. 1
Does the TCJA help or hurt the middle class?
While revenue-neutral, pro-growth tax reform (rather than costly tax cuts) is possible and desirable, the TCJA falls far short of this standard. Well-designed tax policy can be an effective tool for helping the middle class.
What is the middle class?
Middle class is comprised of the second, middle, and fourth income quintiles. Inflation-adjusted using the price index for personal consumption expenditures (PCE). The new tax law—known as the Tax Cuts and Jobs Act (TCJA)—will exacerbate this trend.
How will the tax cuts affect your taxes?
Thanks to the Tax Cuts and Jobs Act, top earners are also expected to get the biggest overall reduction in taxes over the five-year period studied by the CBO — their tax rate is projected to slide by 3 percentage points over the next two years, versus a dip of only 1 percentage point for the bottom 95\% of earners, according to the CBO.