10 Facts the Media Won’t Tell You About the GOP Tax Cuts

Share on Facebook
Tweet this Story
Pin this Image

Posted by Tom Hebert on Friday, April 12th, 2019, 1:45 PM PERMALINK

[Click here for a PDF of this list]

Here are 10 facts about the Republican-passed Tax Cuts and Jobs Act that the media doesn't want you to know. 

  1. Thanks to tax reform, middle class families are seeing  increased take-home pay:
    • A family of four with annual income of $73,000 (median family income) will see a tax cut of more than $2,058, a 58 percent reduction in federal taxes.
    • A single parent with one child with annual income of $41,000 will see a tax cut of $1,304, a 73 percent reduction in federal taxes.
    • Married small business owners with annual income of $100,000 will see a tax cut of $2,603, a 24 percent reduction in federal taxes.
       
  2. Americans at every income level are seeing significant tax reduction because of the Tax Cuts and Jobs Act:
    • 90 percent of households with income between $40,000 and $64,000 saw a tax cut. Average size of that tax cut: $810.  
    • 91 percent of households with income between $64,000 and $108,000 saw a tax cut. Average size of that tax cut: $1,400
       
  3. Taxes are down 25 percent this year and biweekly paychecks are up by $50 on average:
    • Households are paying lower taxes, down 24.9 percent on average following passage of the Tax Cuts and Jobs Act, according to a report released by H&R Block based on their clients’ tax returns.
    • The tax cuts caused biweekly paychecks to increase $50 per paycheck.
    • The report also breaks down change in tax liability by state. Taxpayers in every state have seen average tax reduction of at least 18 percent: “all 50 states and D.C. saw their average tax liability decrease anywhere from 18.0 percent to 29.1 percent.”
       
  4. Tax rates were cut and pro-middle class provisions were implemented across the board:
    • The middle class marginal tax rates were slashed from 15 and 25 percent to 12 and 22 percent
    • The Tax Cuts and Jobs Act doubled the standard deduction for an individual from $6,000 to $12,000 and for a family from $12,000 to $24,000.
    • The Tax Cuts and Jobs Act doubled the child tax credit from $1,000 to $2,000 per child.
    • The Tax Cuts and Jobs Act raised the threshold of the Alternative Minimum Tax so fewer taxpayers are forced to comply with the provision. 4,464,430 families and individuals paid the Alternative Minimum Tax in 2015.
       
  5. Wages are growing and the job market is strong:
    • Over 2.6 million jobs were created in 2018 and over 5.4 million jobs have been created since the beginning of 2017 according to the Bureau of Labor Statistics.
    • Nominal wages have grown by 3.4 percent over the last year, a ten-year high.
       
  6. Unemployment is hitting historic lows:
    • The unemployment rate is at 3.8 percent. In September, the unemployment rate hit 3.7 percent, a 50 year-low.
    • The hispanic unemployment rate in March 2019 was 4.7 percent, and reached a record low of 4.3 percent in February 2019
    • The African American unemployment rate in March 2019 was 6.7 percent, hitting a record low of 5.9 percent in May 2018. 
    • The number of people collecting unemployment benefits is at a 50-year low, and jobless claims have dropped to the lowest level since 1969. 
       
  7. Thanks to tax reform, American families saw relief from the highly regressive Obamacare individual mandate tax penalty:
    • Obamacare imposed a tax penalty of $695 for an individual and $2,085 for a family of four for failing to buy “qualifying” health insurance as defined by the federal government. The Tax Cuts and Jobs Act repealed this unfair tax.
    • The Obamacare individual mandate tax penalty is one of the most regressive taxes in the code as it disproportionately impacts low and middle-income families:
    • 6,665,480 individuals and families paid a total of $3,079,255,000 in individual mandate tax penalties in 2015.
      1. 37.35 percent of taxpayers (2,489,490 households) that paid the individual mandate made less than $25,000 in annual income.
      2. 78.98 percent of taxpayers (5,264,380 households) that paid the individual mandate made less than $50,000 in annual income.
         
  8. Business confidence is hitting all-time highs following tax reform:
    • Small business optimism is strong, hitting a record high of 108.8 in August 2018 and continues to trend above the historical average at 101.2.
    • Optimism amongst manufacturers hit a record high of 92.4 percent in 2018 according to the National Association of Manufacturers. 
    • Optimism among middle market businesses hit a record high of 136.7 in 2018. 
       
  9. Employers large and small have responded to tax reform by raising pay, creating new jobs, increasing employee benefits, and expanding operations. 
    • Americans for Tax Reform has compiled a list of powerful stories of business owners explaining how the Tax Cuts and Jobs Act has helped them grow their businesses and help their employees.
    • Click here for ATR’s list of over 800 in-their-own-words examples of how the Republican tax cuts have helped businesses large and small.
       
  10. Utility companies in all 50 states are passing on the tax savings in the form of lower rates for customers:
    • This means lower electric bills, lower gas bills, and lower water bills for Americans than if the corporate rate cut had not occurred.

 

[Click here for a PDF of this list]

Photo Credit: Gage Skidmore

×