During his first solo press conference, Joe Biden claimed that 83% of President Trump’s tax cut in 2017 went directly to the top 1% of wealthiest Americans.
The recipients of Trump’s historic tax cuts were not limited to the wealthiest Americans – not by a long shot. In fact, taxpayers in general benefited from the Trump’s Tax Cuts and Jobs Act. From poor to wealthy, an overwhelming majority of tax payers seemed to benefit from the cuts.
Here are the facts:
- 82% of middle-class households in America received an average tax cut of $1,260 annually.
- 90% saw an increase in their take-home pay.
- Trump’s tax cuts raised wage growth by 3.3%.
- Unemployment reached historic lows .
In 2018, the Tax Policy Center estimated the top 1% of America’s wealthiest earners would receive only 20.5% of the tax cuts. The top 20% of earners would receive 65.3%. Given that high-income earners pay the most in income tax, it’s not a secret that cuts to income taxes to benefit them. For example, the top 20% of households earn 53% of pre-tax income and pay 68% of all income taxes.
However, if the middle-class tax cuts are allowed to expire in 2027, rich Americans would reap most of the benefits. The Tax Policy Center claims, if allowed to expire, the top 1% wealthiest Americans would receive 82.8% cuts in Trump’s tax bill. Few expect the middle-class tax cuts to expire for this very reason.
Nonetheless, that is not what Biden claims. He lied to the American people when he flatly said Trump’s tax cuts are already going toward the ultra-rich exclusively.
Author: Sarah Reitmann