Recently, I've noticed numerous quips by liberals claiming that the Trump tax cuts are mostly for the rich, blah, blah, blah. After what we now know about the Trump tax cuts, this is rather surprising. Trigger alert: Facts are about to be presented.
* Under the Trump tax cuts, the rich pay a top marginal rate of 37%, whereas most middle-income earners pay a top marginal rate of either 12% or 22%.
* For their top marginal rate, the majority of married middle-income people fall in the second tax bracket ($19K-$77K, married), which means they now have a top marginal rate of only 12%, down from 15% under the previous tax law. 12% is a whole lot less than 37%.
* For most middle-income single persons, their top marginal rate falls in the third tax bracket ($38K-$72K), which means they have a top marginal rate of 22%, down from 25% under the previous tax law. 22% is a lot less than 37%. Furthermore, people in this bracket benefit from having their second-bracket income taxed at only 12%, so they are getting a rate reduction of a whopping 6 percentage points.
* People who make over $500K single/$600K married have a top marginal rate of 37%, down from 39.6% under the previous tax law. Notice that their rate reduction is smaller than the rate reductions for the second and third brackets.
Many liberals ignore these facts and instead focus on the corporate income tax rate cut, which has reduced the corporate tax rate from 35% to 21%. Apparently liberals are not aware that the average corporate tax rate in Europe and Asia falls between 18% and 21%. They also seem unaware that many mid-sized companies will benefit greatly from this corporate income tax reduction, and that many small-business and mid-sized-business owners would fall in the third and fourth tax brackets if their income were salaried income. So the corporate tax rate reduction is by no means just "for the rich."
Furthermore, no one can rationally deny that if a company, big or small, is paying a substantially lower tax burden, that company has more money to put into raises, promotions, benefits, bonuses, expansion, inventory, etc.
If you want to see the new tax tables and get other accurate information about the Trump tax cuts, read this article: What's in the final version of the tax bill?
* Under the Trump tax cuts, the rich pay a top marginal rate of 37%, whereas most middle-income earners pay a top marginal rate of either 12% or 22%.
* For their top marginal rate, the majority of married middle-income people fall in the second tax bracket ($19K-$77K, married), which means they now have a top marginal rate of only 12%, down from 15% under the previous tax law. 12% is a whole lot less than 37%.
* For most middle-income single persons, their top marginal rate falls in the third tax bracket ($38K-$72K), which means they have a top marginal rate of 22%, down from 25% under the previous tax law. 22% is a lot less than 37%. Furthermore, people in this bracket benefit from having their second-bracket income taxed at only 12%, so they are getting a rate reduction of a whopping 6 percentage points.
* People who make over $500K single/$600K married have a top marginal rate of 37%, down from 39.6% under the previous tax law. Notice that their rate reduction is smaller than the rate reductions for the second and third brackets.
Many liberals ignore these facts and instead focus on the corporate income tax rate cut, which has reduced the corporate tax rate from 35% to 21%. Apparently liberals are not aware that the average corporate tax rate in Europe and Asia falls between 18% and 21%. They also seem unaware that many mid-sized companies will benefit greatly from this corporate income tax reduction, and that many small-business and mid-sized-business owners would fall in the third and fourth tax brackets if their income were salaried income. So the corporate tax rate reduction is by no means just "for the rich."
Furthermore, no one can rationally deny that if a company, big or small, is paying a substantially lower tax burden, that company has more money to put into raises, promotions, benefits, bonuses, expansion, inventory, etc.
If you want to see the new tax tables and get other accurate information about the Trump tax cuts, read this article: What's in the final version of the tax bill?
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