It turns out that Democrats were wrong again. There’s no surprise, and we saw that coming, but it’s interesting how bad they were. The Tax Cuts and Jobs Act benefited the middle and working class, and the wealthy didn’t benefit.
The left claimed that there would be massive tax cuts for the wealthy and that the middle and working-class would be beaten to the ground. Even Chuck Schumer (D-NY) stated that the TCJA would “stuff even more money into the pockets of the wealthy and the largest corporations while raising taxes on millions of middle-class Americans.” It is also “slanted toward the wealthy and powerful, and rains tax increases on millions of middle-class citizens,” he added.
That didn’t age well.
According to House Speaker Nancy Pelosi, “the TCJA is theft-monumental, brazen theft from the American middle-class and everyone who aspires to it. The GOP tax scam is not a vote for investment in growth or jobs. It’s a vote to establish a permanent plutocracy in our country.”
If you want to ensure the middle-class survives and thrives, you can’t raise taxes on the wealthy. It’s simple economics. When the rich pass down the bill, they’re going to have to raise prices, and it’s going to take longer for the middle and working class to get raises which won’t catch up with the inflated prices due to higher taxes. Why don’t they understand this?
Armageddon and the end of the world haven’t happened as Pelosi suggested, but quite the opposite.
Justin Haskins, editor director at The Heartland Institute, documents Policy Brief, US Internal Revenue Service data shows that “the Tax Cuts, and Jobs Act reduced average effective tax rates for all income brackets, with lower and middle-income households benefiting most.”
For anyone who had a gross income of $40,000 to $50,000, Americans saved an average of 18.2% after deductions.
According to IRS data, Haskins also noted that “the Tax Cuts and Jobs Act appears to have had a significant impact on economic mobility. More than 2 million people fell into the $1 to $25,000 income bracket over a single year, while the number of households with incomes above $25,000 increased in every income bracket.”
That means that more wealth was created under former President Donald Trump than anticipated by the left. Boy, they were wrong.