Trump touted the GOP’s tax overhaul in his State of the Union address Tuesday night, claiming it provided “tremendous relief” for middle class Americans.
In fact, while the GOP tax plan does give most people a tax cut in 2018, the super wealthy will benefit the most — by a wide margin.
Analysis by the Tax Policy Center shows that, in 2018, the top 1 percent of income earners — those making more than $730,000 — will receive 53 percent of the benefits, or an additional $51,000 in after-tax income. The top 0.1 percent — those making $3.4 million a year or more — will receive an additional $193,000.
By contrast, those making between $49,000 and $86,000 will receive an additional $900 in after-tax income; those making less than $25,000 a year will only receive an additional $60.
The majority of income-earners — anyone making less than $155,000 — will see no increase at all. More than half of all earners will see their taxes go up.
By 2027, those in the top 1 percent will receive at around 83 percent of the benefits.
On top of that, the tax legislation represented a huge giveaway to rich corporations, which are enjoying a corporate tax cut reduction from 35 percent to 21 percent. While many companies have announced plans to reinvest in the economy and hire more workers in the wake of the tax bill passage, the majority will likely spend the money they receive from the massive corporate tax cut on share buybacks and executive bonuses.
Share buybacks enhance shareholders’ wealth but do not profit the average worker by raising wages or creating jobs. Following the bill’s passage, several companies have actually slashed jobs, issuing massive layoffs in conjunction with glowing statements about one-time cash bonuses for their remaining employees.