Top 1% Continue to Benefit From GOP Tax Policy, While 53% of Americans Will See a Tax Increase

• • • •

In 2016, Donald Trump promised that under his administration, “No one will gain more from tax cuts than low and middle-income Americans.” And in 2017, Congress passed the Trump-backed Tax Cuts and Jobs Act, much to the delight of corporations.

The law lowered the corporate tax rate from 35% to 21%. It also adjusted tax brackets for individuals and families, lowered the top tax rate from 39.6% to 37%, increased standard deductions, and enacted an across-the-board tax cut.

Even in 2018, when cuts were most evenly distributed, the majority of the benefit was seen by top earners. The poorest Americans get roughly a .4% boost in take-home income, or 1% of the federal tax change. Lower and middle-income class Americans received 16.4% of the change, while the lion’s share went to the wealthiest Americans.

This trend only gets worse over time. The only permanent tax cuts contained in the bill are those for corporations. Most other provisions expire in 2025, with the exception of a slower-growing measure to adjust tax brackets, which effectively raises taxes on individuals in order to pay for corporate cuts.

In effect, the law was structured so that corporations and the richest Americans get a permanent tax cut while shifting the burden to the middle class. By 2027, 53 percent of all Americans would see a tax increase. The poorest Americans would still see little effective change. And nearly 70% of Americans in the middle fifth of the income distribution would see a tax increase. Meanwhile, the top 1 percent would continue to get 82.8% of tax benefits.

Democrats have a plan to change the inverted funnel of money flowing only to the wealthiest Americans, take our resources back, and use our dollars to provide benefits for the majority of Americans.

For example, President Biden has suggested funding infrastructure investment by:

  • Rolling back some of the Trump tax giveaways and raising the corporate tax rate from 21 to 28 percent — still well below the 35 percent at which it stood in 2016.
  • Keeping the corporate tax rate at 21 percent but establishing a 15 percent minimum tax so no corporation would be able to get away with paying zero taxes.
  • Giving the IRS the resources it needs to crack down on wealthy tax cheats, simply by enforcing laws already on the books.
  • Roughly doubling the capital gains paid by investors earning over $1 million per year to being capital gains tax rates more in line with the ordinary income tax rates the majority of Americans pay.

Rather than languishing in wealthy coffers, these funds could repair roads and bridges, expand broadband access, provide resources to states, make healthcare more affordable, invest in green jobs, create sustainable public transportation, prepare more of our infrastructure for the impacts of climate change, invest in clean water for all communities, and more.

Americans’ tax dollars should benefit the collective good for all Americans. And only filibuster reform can make this possible when one party (hint: the GOP) is wholly committed to giveaways to the corporations and the wealthiest Americans.

Updated on Aug 5, 2022

Facts work the best when shared with friends. ..

FactPAC is dedicated to supporting a robust and fair Democracy by getting the facts to voters. FactPAC is an unconnected political action committee that has no affiliation with any other organizations or campaigns. We are donor-supported and volunteer-run.

Sharing this fact can make a difference! Can you share it on just one of your profiles?

The Ministry of Truth is the Latest False Flag

Ron DeSantis Follows Castro’s Lead with Banned Books

Ketanji Brown Jackson confirmed as the first Black woman to serve on the U.S. Supreme Court

After One Month of Not Watching Fox News, Viewers Changed Political Positions

Trump’s Circle of Fraudulent Voters

More Voter Fraud Discovered and Again, it Was Trump Supporters Committing Fraud

U.S. Oil Companies Could Lower Gas Prices. They Won’t.

What’s in the infrastructure bill?

Fraud Discovered in 2020 Election in Pennsylvania – Lt. Gov. Dan Patrick Pays $25K

Donald Trump Keeps Taking Money from Supporters Without Delivering

“Women know less than men…” – Larry Elder

Would a New California Governor Manage Forests Better and Protect the State from Wildfires?

Violent Crimes, Property Crimes, and Sexual Assaults Dropped in California’s Largest Cities Between 2019 and 2020

California Has One of the Lowest Middle-Class Tax Burdens in the U.S.

The John Lewis Voting Rights Act Would Have Locked In All State Level Voter I.D. Laws and Republicans Still Voted Against It

Unvaccinated People Make Up Over 94-99% of COVID-19 Cases

Comparing San Francisco Bay and Tampa Bay Illustrates How Leadership Has Failed Florida During Surge of COVID-19

How Many QAnon Predictions Have Been Wrong? All of them. Reinstatement Day is no different.

Trump Failed For 4 Years to Deliver on Infrastructure. Democrats Rallied Bi-Partisan Support in the Senate and Got it Done in Just Under 7 Months.

Pandemic Profiteers Find Loyal Following Among Conservative Voters Willing to Believe COVID-19 Disinformation

Black Lives Matter Protests Killed Zero Police Officers. Trump’s Riot Resulted in 3 Officer Deaths, 1 Killed in the Line of Duty.

66% of Supreme Court Justices are There In Spite of Public Opinion

Why Are Republicans Suddenly Pro-Vaccine?

Thank You, Texas Democrats

Top 1% Continue to Benefit From GOP Tax Policy, While 53% of Americans Will See a Tax Increase

We can't win without your support.

We're running digital campaigns throughout the country to fight for your voting rights. Help us continue to support democracy.