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2017 Trump Tax Cuts did not go to the wealthiest 1%

task0778

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In a speech last week introducing his proposed $6 trillion 2022 budget, President Biden claimed that the benefits of the Republican Party’s Tax Cuts and Jobs Act “went to the wealthiest 1% of America.” It’s not the first time he’s made this claim, but it is a LIE.

Let’s start with that supposedly “huge windfall” that went to the “wealthiest 1%” of America. While the TCJA reduced effective income tax rates for all income groups in 2018, the top 1% experienced no windfall. Rather, according to the most recent IRS income tax data, the top 1% of taxpayers paid $616 billion in 2018, roughly the same amount they paid in 2017. But the bottom 99% paid $65 billion less. Some “windfall.” If the TCJA was a tax cut for the rich, it was the weirdest one in the history of tax cuts for the rich.



But did those evil 1-percenters pay their fair share? Turns out they did – and certainly a larger share than when tax rates were last at Biden’s proposed 39.6%.

In 2018, while the top 1%’s share of adjusted gross income declined slightly to 20.9% (from 21.0% in 2017), its share of the income tax burden increased to 40.1% from 38.5%. “Fair” is in the eye of the beholder, but consider: The top 1%’s share of taxes paid nearly doubles its share of income. For more “fair share” perspective, consider that in 2018, the top 1% paid more in income taxes than the bottom 90% of taxpayers – combined.

Biden also might be surprised to learn that the top 1% actually paid a higher percentage of income taxes in 2018 under the TCJA than in any year since at least 2001 – when it paid 33.2%. That includes each of the five years from 2013 to 2017 following the Obama tax hikes, when the top rate last stood at 39.6% – the rate Biden is currently proposing.



So, how did that happen? Glad you asked:

.... the TCJA increased taxable income for wealthier Americans by reducing the itemized deductions they could claim. High earners generally benefit more from itemizing deductions. Lower earners generally benefit more from the standard deduction. The TCJA increased the standard deduction and limited itemized deductions.

According to IRS data, following the TCJA, the amount taxpayers claimed for itemized deductions dropped by 55%, from about $1.46 trillion in 2017 to about $650 billion in 2018. That’s over $800 billion that was taxed in 2018 but not in 2017, most of which came from the rich people. (see link above)


Hello SALT deduction, which was a big part of that. Funny how the Dems want to raise taxes on the rich but not THEIR rich, the ones that live in their blue states.

So, when somebody says the Trump tax cuts benefited the rich, you know they are either misinformed or outright lying. Probably they've been watching CNN or MSNBC a little too much.
 

Oddball

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Trying to 'splain to the moonbats how marginal rates work is like a Martian talking to a fungo.
 

kyzr

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Its not the tax rates, its the loopholes. Trump didn't pay anything, neither did many of the wealthiest.
Remember when Leona Helmsley let the cat out of the bag? "Only little people pay taxes"
The top tax rates did better over the past decades than the rest of us.
1622752791487.png
 

pknopp

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Incomplete data. If there is 12 trillion in wealth and 600 million is paid in taxes that would be higher than 16 trillion in wealth and 600 million in taxes.
 

Toddsterpatriot

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In a speech last week introducing his proposed $6 trillion 2022 budget, President Biden claimed that the benefits of the Republican Party’s Tax Cuts and Jobs Act “went to the wealthiest 1% of America.” It’s not the first time he’s made this claim, but it is a LIE.

Let’s start with that supposedly “huge windfall” that went to the “wealthiest 1%” of America. While the TCJA reduced effective income tax rates for all income groups in 2018, the top 1% experienced no windfall. Rather, according to the most recent IRS income tax data, the top 1% of taxpayers paid $616 billion in 2018, roughly the same amount they paid in 2017. But the bottom 99% paid $65 billion less. Some “windfall.” If the TCJA was a tax cut for the rich, it was the weirdest one in the history of tax cuts for the rich.



But did those evil 1-percenters pay their fair share? Turns out they did – and certainly a larger share than when tax rates were last at Biden’s proposed 39.6%.

In 2018, while the top 1%’s share of adjusted gross income declined slightly to 20.9% (from 21.0% in 2017), its share of the income tax burden increased to 40.1% from 38.5%. “Fair” is in the eye of the beholder, but consider: The top 1%’s share of taxes paid nearly doubles its share of income. For more “fair share” perspective, consider that in 2018, the top 1% paid more in income taxes than the bottom 90% of taxpayers – combined.

Biden also might be surprised to learn that the top 1% actually paid a higher percentage of income taxes in 2018 under the TCJA than in any year since at least 2001 – when it paid 33.2%. That includes each of the five years from 2013 to 2017 following the Obama tax hikes, when the top rate last stood at 39.6% – the rate Biden is currently proposing.




So, how did that happen? Glad you asked:

.... the TCJA increased taxable income for wealthier Americans by reducing the itemized deductions they could claim. High earners generally benefit more from itemizing deductions. Lower earners generally benefit more from the standard deduction. The TCJA increased the standard deduction and limited itemized deductions.

According to IRS data, following the TCJA, the amount taxpayers claimed for itemized deductions dropped by 55%, from about $1.46 trillion in 2017 to about $650 billion in 2018. That’s over $800 billion that was taxed in 2018 but not in 2017, most of which came from the rich people. (see link above)


Hello SALT deduction, which was a big part of that. Funny how the Dems want to raise taxes on the rich but not THEIR rich, the ones that live in their blue states.

So, when somebody says the Trump tax cuts benefited the rich, you know they are either misinformed or outright lying. Probably they've been watching CNN or MSNBC a little too much.

Of course they did.

That's why the 1%ers were whining so much over losing their SALT deductions.
 

Oddball

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Its not the tax rates, its the loopholes. Trump didn't pay anything, neither did many of the wealthiest.
Remember when Leona Helmsley let the cat out of the bag? "Only little people pay taxes"
The top tax rates did better over the past decades than the rest of us.
View attachment 497020
Deceptive statistics.

The income tax falls heaviest upon people who work for wages and salaries...."Wealth" isn't taxed.
 

Dont Taz Me Bro

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In a speech last week introducing his proposed $6 trillion 2022 budget, President Biden claimed that the benefits of the Republican Party’s Tax Cuts and Jobs Act “went to the wealthiest 1% of America.” It’s not the first time he’s made this claim, but it is a LIE.
The Democrats know it's a lie. It's not as if it would stop them from repeating it anyway.
 

Rambunctious

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Trump's tax cut was across the board every income tax payer under $500,000 per year got one...and undoing it will raise everyone's taxes....
 

pknopp

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Trump's tax cut was across the board every income tax payer under $500,000 per year got one...and undoing it will raise everyone's taxes....

With being almost 30 trillion in debt would be the thing to do.
 

progressive hunter

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Incomplete data. If there is 12 trillion in wealth and 600 million is paid in taxes that would be higher than 16 trillion in wealth and 600 million in taxes.
you cant be that stupid,,

that wealth is tied up in companies and assets,, to get to it you would have to close them down and sell off the assets,,
 
Last edited:

colfax_m

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In a speech last week introducing his proposed $6 trillion 2022 budget, President Biden claimed that the benefits of the Republican Party’s Tax Cuts and Jobs Act “went to the wealthiest 1% of America.” It’s not the first time he’s made this claim, but it is a LIE.

Let’s start with that supposedly “huge windfall” that went to the “wealthiest 1%” of America. While the TCJA reduced effective income tax rates for all income groups in 2018, the top 1% experienced no windfall. Rather, according to the most recent IRS income tax data, the top 1% of taxpayers paid $616 billion in 2018, roughly the same amount they paid in 2017. But the bottom 99% paid $65 billion less. Some “windfall.” If the TCJA was a tax cut for the rich, it was the weirdest one in the history of tax cuts for the rich.



But did those evil 1-percenters pay their fair share? Turns out they did – and certainly a larger share than when tax rates were last at Biden’s proposed 39.6%.

In 2018, while the top 1%’s share of adjusted gross income declined slightly to 20.9% (from 21.0% in 2017), its share of the income tax burden increased to 40.1% from 38.5%. “Fair” is in the eye of the beholder, but consider: The top 1%’s share of taxes paid nearly doubles its share of income. For more “fair share” perspective, consider that in 2018, the top 1% paid more in income taxes than the bottom 90% of taxpayers – combined.

Biden also might be surprised to learn that the top 1% actually paid a higher percentage of income taxes in 2018 under the TCJA than in any year since at least 2001 – when it paid 33.2%. That includes each of the five years from 2013 to 2017 following the Obama tax hikes, when the top rate last stood at 39.6% – the rate Biden is currently proposing.




So, how did that happen? Glad you asked:

.... the TCJA increased taxable income for wealthier Americans by reducing the itemized deductions they could claim. High earners generally benefit more from itemizing deductions. Lower earners generally benefit more from the standard deduction. The TCJA increased the standard deduction and limited itemized deductions.

According to IRS data, following the TCJA, the amount taxpayers claimed for itemized deductions dropped by 55%, from about $1.46 trillion in 2017 to about $650 billion in 2018. That’s over $800 billion that was taxed in 2018 but not in 2017, most of which came from the rich people. (see link above)


Hello SALT deduction, which was a big part of that. Funny how the Dems want to raise taxes on the rich but not THEIR rich, the ones that live in their blue states.

So, when somebody says the Trump tax cuts benefited the rich, you know they are either misinformed or outright lying. Probably they've been watching CNN or MSNBC a little too much.
None of this analysis amounts of a hill of beans without taking into consideration the share of income and income growth.
 

colfax_m

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Trump's tax cut was across the board every income tax payer under $500,000 per year got one...and undoing it will raise everyone's taxes....
This would almost imply that people over $500,000 didn’t get a tax cut. You don’t believe that, so you?
 

sartre play

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We now have over 600 billionaires, If its true that most of us struggled to remain in our attained level of living, then how during this on going mess did those at the top manage to increase their wealth by a trillion dollars?
 

kyzr

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Its not the tax rates, its the loopholes. Trump didn't pay anything, neither did many of the wealthiest.
Remember when Leona Helmsley let the cat out of the bag? "Only little people pay taxes"
The top tax rates did better over the past decades than the rest of us.
View attachment 497020
Deceptive statistics.

The income tax falls heaviest upon people who work for wages and salaries...."Wealth" isn't taxed.
Exactly, wealth isn't taxed. Neither are "capital gains" unless they up the tax rate.
Other taxes I'm in favor of are:
1. Transaction tax on financial transactions, stocks, bonds, derivatives, bitcoin, etc.
2. Remittance Tax on all money sent out of the US, this would gain $150b a year.
3. Fix Social Security and MediCare to keep them solvent
 

colfax_m

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In a speech last week introducing his proposed $6 trillion 2022 budget, President Biden claimed that the benefits of the Republican Party’s Tax Cuts and Jobs Act “went to the wealthiest 1% of America.” It’s not the first time he’s made this claim, but it is a LIE.
The Democrats know it's a lie. It's not as if it would stop them from repeating it anyway.
The article in the OP is garbage.
 

kyzr

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We now have over 600 billionaires, If its true that most of us struggled to remain in our attained level of living, then how during this on going mess did those at the top manage to increase their wealth by a trillion dollars?
When I was young the Chinese rode bikes to work, now they ride Mercedes. They have more billionaires than the US
 

ReinyDays

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Just looked at my 2020 tax returns ... the first $441,450 in capital gains is tax free* ... $0 ... my entire tax liability was 1.3% of my AGI ... thievin' bastards ... thank you all for paying my fair share of the tax load ... seven come eleven baby, Las Vegas wouldn't be the same without y'all's generosity ...

* = Qualified Dividend and Capital Gains Worksheet, Instructions for IRS Form 1040 (2020), page 35, line 13 ...
 

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