ICYMI: IRS Data: Middle Class Americans Saw Biggest Tax Reduction from Trump Tax Cuts
By Alex HendriePublished September 22, 2020
IRS has released
2018 Statistics of Income (SOI) data.
data shows that middle income American families saw the biggest tax cut –
measured as the percentage decrease in "total tax liability" between
2017 and 2018 – from the Trump-Republican Tax Cuts and Jobs Act (TCJA).
tax liability includes federal income taxes as well as taxes listed on IRS form
1040 such as social security taxes on self-employment income and tax applicable
to individual retirement arrangements (IRAs).
the data notes, Americans with incomes between $50,000 and $100,000 saw their
tax liability drop by twice as much as Americans with income above $1
with adjusted gross income (AGI) of $50,000 to $74,999 saw a 13.2 percent
reduction in average tax liabilities between 2017 and 2018.
with AGI of between $75,000 and $99,999 saw a 13.6 percent reduction in average
federal tax liability between 2017 and 2018.
with AGI of $1 million or above saw a 5.8 percent reduction in average federal
tax liability between 2017 and 2018, less than half the tax cut seen by
Americans with AGI between $50,000 and $100,000.
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