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.
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!