Connect with us

World

Half of Tax Cuts Will Go to Middle Class Americans

AP Photo/J. Scott Applewhite

byJohn Carney19 Dec 20170

19 Dec, 201719 Dec, 2017

Middle-class Amer..

AP Photo/J. Scott Applewhite

byJohn Carney19 Dec 20170

Middle-class Americans will get $122.6 billion in tax cuts in 2019 under the Republican tax plan likely to win Congressional approval this week, according to an analysis released Monday by the Joint Committee on Taxation.

That means that the American middle-class will get around 47 percent of the $259.5 million in individual and business tax cuts for 2019.

Households earning between $40,000 and $200,000 make up around half of all American households. Pew Research defines the American middle class for a family of three as running from $42,000 to $125,000 of pretax income. The JCT data do not break out data between $100,000 to $200,000, so its impossible to narrow the range without excluding many middle-income Americans.

The JCT data supports the Trump administration’s position that the middle-class would significantly benefit from the tax bill. Critics have said that the bill would not benefit the middle-class, an argument that the JCT data prove is false.

The very wealthy recieve a far smaller share of the tax cuts. Those earning over $1 million will receive 14 percent of the tax cuts, according to JCT data. Most of the benefit to the wealthy comes in the form of cuts to business taxes rather than individual taxes.

Many Americans wrongly expect that their taxes will increase under the Republican bill. According to the JCT, taxes for every income bracket will fall under the bill.

The JCT is required to assume that many of the tax cuts expire in future years because the tax bill sunsets them for budgetary reasons.

But Republican leaders have said they will move to extend the tax cuts or make them permanent and no Democrats have advocated for allowing the tax cuts to expire. History suggests that temporary tax cuts rarely expire on schedule, if at all. And raising taxes on middle-class households is likely to be too politically unpopular for future lawmakers to vote for it.

Original Article

The post Half of Tax Cuts Will Go to Middle Class Americans appeared first on News Wire Now.

Continue Reading
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

World

Over 21,000 People Killed since UN Global Ceasefire-Resolution

At least 21,347 people have been killed in conflict, including more than 5,800 civilian adults and c..

At least 21,347 people have been killed in conflict, including more than 5,800 civilian adults and children who were directly targeted[i], despite the adoption of a UN Security Council resolution calling for a global cessation of hostilities some 90 days ago. Instead of a ceasefire, allowing countries and humanitarian organisations to focus on battling the COVID-19 pandemic, ongoing violence is pushing millions to the brink of conflict-induced famine and hindering the battle against the outbreak. (more…)

Continue Reading

World

COVID-19 could reverse gains made for African children, warns Save the Children

The COVID-19 pandemic threatens to reverse progress made for children in Africa by years or even dec..

The COVID-19 pandemic threatens to reverse progress made for children in Africa by years or even decades, witheconomic aftershocks risking to push an additional 33 million children into poverty, according to Save the Children. (more…)

Continue Reading

World

COVID-19 threatening global peace and security, UN chief warns

Following are UN Secretary-General António Guterres remarks to the Security Council on the COVID-19 ..

Following are UN Secretary-General António Guterres remarks to the Security Council on the COVID-19 pandemic, in New York, today: (more…)

Continue Reading

Trending