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In Washington, the facts are from the first victim of politics. Nowhere is more teams than in the Debate on the Law of Tax and Jobs Cuts (TCJA) of 2017: the Fiscal Reform Law of President Donald Trump of his first mandate in office. As the debates are enraged whether to extend the individual TCJA tax cuts, leftist politicians and inherited media are increasing their usual inadmissibility campaign.
We have all heard the conversation points: the TCJA was a “wealth transfer” that came “at the expense of working families”, a “raffle to billionaires” or my personal favorite, a scheme of “reverse bell” to steal the working class for the benefit of the ultra notices.
There is only one problem: none of that is true. Not equally close.
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In early April, he was co -author of a new policy study for the Heartland Institute that examines the latest IRS Personal Income Tax data. Our goal was to determine if the Republican Fiscal Law is still saving money to taxpayers, and if so, how much?
Trump can point out the success of its tax court strategy to help the middle class, according to a new study.
What we found is that Americans with lower and media income have resorted to the largest fiscal exemptions due to TCJA and thesis either small amounts. We estimate that dozens of millions of millions have saved thousands of dollars by the Republican Fiscal Reform Law, savings that are now at risk if Congress cannot extend the cuts before they expire at the end of 2025.
The evidence is clear, convincing and impossible to ignore, unless he is a partisan activist disguised as a journalist.
Mass tax deduction for the middle class
Using government data, we were able to calculate how much in taxes the average file in each IRS income group paid annually from 2017 to 2022. TCJA was transmitted in 2017 but did not enter into force until 2017, we can establish the data of families and families.
IRS data show that each income group received a tax cut because the TCJA, but the taxpayers who received the highest cuts, in terms or percentage of bran, were for those who won less than $ 75,000.
For example, the average file on the “$ 40,000 under $ 50,000” IRS support paid 18.8% less in taxes in 2022 than in 2017.
Similarly, the Tax Invoice for Silers on the “$ 50,000 support below $ 75,000” was 16.5% less in 2022 than in 2017.
For comparison, those that earn between $ 5 million and $ 10 million paid 2.3% less during the same period. Too much for the “billionaire tax cut”. (You can find data for other income supports in our published article, which is available here).
Some critics of the TCJA have affirmed that Altheoth’s intermediate income Americans received great cuts at their tax rates, those reductions in tax rates did not rise to significant savings in terms of total dollars. But the statements are also false. Many middle -class Americans have saved thousands due to TCJA.
A new analysis of IRS fiscal data indicates that everyone benefited from Trump’s tax cuts, but those who earned less than $ 75,000 received a much higher percentage of savings. (Samuel Corum/Bloomberg through Getty Images)
Our analysis found from 2018 to 2022, filters that earn between $ 50,000 and $ 75,000 annually saved an average of $ 4,516 due to personal tax cuts contained in the TCJA. For those in the group of $ 75,000 to $ 100,000, the savings increased to $ 5,923. And those who earned $ 100,000 to $ 200,000 saved $ 9,638 amazing in five years.
However, these numbers do not tell the full story. Because the most recent IRS data is 2022, total savings estimates do not include the 2023 and 2024 numbers. To account for these years, we develop projected figures using the average amounts stored in 2018 to 2022.
After extending the analysis until 2024 using consistent annual trends, the numbers become even more impressive. In 2022, more than 50 million middle class fell in parentheses that saved on average between $ 6,322 and $ 13,494 in total savings.
Even low -income Americans and working class saw substantial relief. We estimate that households that earn between $ 30,000 and $ 50,000 saved $ 2,537 to $ 3,833 in the same period.
A more progressive tax code
Ironically, the law itself that Democrats call a blessing for the rich have made the United States Tax Code more progressive. We arrive at this conclusion by examining the tax burden paid for each IRS income range in 2017, the year before TCJA entered into force, compared to its loads in the secondary years.
What we found is that in 2022, the most recent year for which there are data available, each income range obtained less than $ 200,000 paid a narrower part of the total personal income tax burden in 2017. On the contrary, each satera.
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That means that Althegh, each income group received a tax cut due to the TCJA, Trump’s tax cuts adhered to the richest filters to pay a major part of the personal tax revenue cake than the Fercats, exactly the opposite.
The clock is working
If Congress does nothing, TCJA personal income tax cuts will expire at the end of 2025. That meant that dozens of millions of Americans will face a stealth tax increase. For many average income families, it could mean paying $ 900 or more in taxes annually.
After extending the analysis until 2024 using consistent annual trends, the numbers become even more impressive.
It is possible that Washington’s elites do not feel it, but working families will surely.
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That’s why this fight matters. This is not the President Donald Trump or the partisan score, it is about whether the government should take more of the families that already fight under the weight of inflation and stagnant wages.
The data are in. The verdict is clear. The tax and job cuts law worked for all, but especially for working -class and average income. It is time to tell the truth about the tax cuts and then make them permanent.
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