Tax Cuts – Not For Long

The chart below is courtesy of Dan Primack, Pro Rata newsletter from Axios. At first glance, it appears that a significant majority of taxpayers across the income spectrum will receive tax relief and a positive after-tax income boost from the latest tax proposals out of D.C.  However, fast forward 10 years to 2027, and the tax relief proves illusionary for most Americans.Tax cut 2027

According to Primack, a majority of Americans in income percentiles from 0% (not high) to 90% will not only NOT see tax relief, they will actually see a tax increase relative to current tax law. In fact, it is estimated that only 11.8% of those in the lowest 20% of income will continue to receive a tax break, while 32.4% will see their taxes raised and after-tax income fall by -0.1%.  I find this quite distasteful. How about you?

If you find yourself in the 40% to 60% bracket, 65.6% of you will see a higher tax bill come 2027, while 58.9% of those in the 60% to 80% income bracket will be impacted by higher taxes. Regrettably, 98.1% of the top 0.1% will continue to receive a tax cut, while their after-tax income grows by 2.0%. I say regrettably because we are negatively impacted by a serious income inequality in this country, and proposed tax changes should be addressing this issue – not compounding it!

 

 

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