Data from the IRS show that President Donald Trump’s tax cuts, known as the Tax Cuts and Jobs Act, helped lower- and middle-income households the most, according to a report by the Heartland Institute. Moreover, it led to “lower average income tax rates for taxpayers in every income bracket.” The information was based on a comparison of tax returns between 2017 to 2018, the first year the law went into effect.
According to the Heartland Institute, taxpayers with an adjusted gross income between $40,000 to $50,000 received an average tax cut of 18.2% (after accounting for all tax deductions and credits) from the Tax Cut and Jobs Act. Additionally, the legislation seemed to improve the socioeconomic status of many. Data show that taxpayers with an “adjusted gross income of $1 to $25,000 decreased by more than 2 million in just one year, while the number of households reporting incomes higher than $25,000 increased in every income bracket,” according to the Heartland Institute.
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