Given the recent passage of tax reform in the US Senate, the media has been increasingly hostile in the news about what this bill does and what it is meant to do.
One statistic that jumps out is that 76.3% of all Americans will see a tax cut in their household. Only 8.5% of Americans can expect their taxes to increase.
Think about that, 3/4 people in our country will have more money in their pockets as a result of this bill. Only 1/11 people will see a (slight) increase in their taxes. And roughly 1/7 will not see any change in their current tax situation.
The opposition to this bill says that it gives tax breaks to the wealthiest people in America and kills the middle class. It’s a good narrative for the left to use, hitting the top 1% of America who Bernie Sanders spent his campaign demonizing.
But when the smoke clears, the truth of the matter is that the tax bill does not place any strain on the middle class. However it does give relief to the top 1% of America, and it is a larger break than it is to any other class (as defined by the media and the left). Here’s why that isn’t necessarily a problem:
Let’s say that your household makes $900,000/year, which puts you in the top 1%. per average for the tax bracket, your tax cut in 2019 would be $33,190 less than you’re paying this year. That puts 3.68% more of your annual income back into your pocket.
Now let’s look at the middle class. Let’s say another household makes $75,000/year, which would give them an $850 cut. That is a 1.13% increase in relations to their annual revenue.
Okay, we see a difference in the 1.13% addition for the middle class but 3.68% for the upper class. This is one of the many arguments being made against the GOP tax bill, but these numbers aren’t a very accurate representation of how much is actually being saved for the middle class.
The truth of the matter is the households in the $40,000-70,000 bracket will see a 7.1% decrease from their current tax bills, and households in the $20,000-30,000 will see a decrease of 10.4%.
The upper class? Their taxes are cut, but by substantially less than you may be imagining, by 5.3%. That number does come out to $33,190, and the middle class’ comes to $850.
The numbers we need to be looking at are the percentages; that’s where families build their budgets from. $850 goes a lot farther in the $50,000/year household than $33,190 does to a millionaire.
Here’s the cold, hard truth of the matter: both the left and the right can make a case for their sides. The difference is the left has to leave out some of the facts to make their point. Republicans don’t have to hide from the facts because the numbers are in our favor.
If you would like to learn more about how YOU will be affected by the Republican Tax Plan, go to https://www.washingtonpost.com/graphics/2017/business/what-republican-tax-plans-could-mean-for-you/?utm_term=.cc1f8ae2a12a