Despite the left’s claims, the Republican Tax Cuts and Jobs Act (TCJA) is still benefiting all Americans two years after President Donald Trump signed the tax cuts into law.
Reality has not matched the left’s rhetoric. When Trump signed the TCJA into law, House Speaker Nancy Pelosi slammed tax cuts for the American people, saying the TCJA was akin to “Armageddon” and bonuses given to American workers were “crumbs.”
Two years later, taxpayers are still benefiting from the TCJA’s individual tax rate cuts:
- 90 percent of wage earners have seen more money in their paychecks.
- Taxpayers earning between $20,000 and $50,000 are seeing net federal tax cuts of 10 percent or higher, according to the Joint Committee on Taxation.
- 91 percent of taxpayers with annual income between $64,000 and $108,000 are seeing a 2018 federal tax cut averaging $1,400, according to the left of center Institute for Taxation and Economic Policy.
Families large and small are also benefiting from the Trump tax cuts:
- A single parent with one child with annual income of $41,000 saw a tax cut of $1,304, a 73 percent reduction in federal taxes.
- A family of four with annual income of $73,000 is seeing a 60 percent reduction in federal taxes, totaling more than $2,058.
- According to the Heritage Foundation, the typical American family will be almost $45,000 better off over the next decade because of higher take-home pay and a stronger economy.
American workers have also benefited from the TCJA’s corporate rate cut. Businesses have responded to the tax cuts by giving employees higher wages and creating new employee benefit programs, while utility companies are passing tax savings onto consumers in the form of lower rates.
The left’s claims that the TCJA wasn’t “paid for” have also proven false. Stronger economic growth has already paid for 80 percent of the costs of the tax cuts according to the non-partisan Congressional Budget Office’s estimates before and after the law was enacted.
The left also misled the American people about tax refunds earlier this year, saying that Republicans raised taxes on Americans because the first few weeks of the filing season saw slightly lower refunds. Again, this was false – tax refunds ended up being at the same levels as 2018.
Ultimately, the left’s constant disinformation campaign against the Trump tax cuts doesn’t change the fact that the law has been massively successful for millions of Americans.