Over two-thirds of the tax cut (USD1.5 trillion) has gone to the top 20%
earners. The Institute on Taxation and Economic Policy (“ITEP”) a think tank,
found that from 2001 through to 2018, changes in tax code have reduced U.S. Government
revenue by USD5 trillion. Of this, 65% of the savings have gone to the richest
Americans (22% of that is exclusively to the top 1%). By 2025, the tax cut will
grow to USD10.6 trillion. Of that, almost USD2 trillion will be for the
wealthiest one percent of Americans.
With the 2017 tax bill, the top fifth of Americans are drawing tax cuts
of 4.8% of their incomes while bottom 60% receive less than 4%
The most recent tax cuts may not help grow the U.S. economy. Why? “When
the economy is firing on all cylinders, a fiscal stimulus tends to do not
much!” (Economists Tim Mahedy and Dan Wilson). So wage earners have no wage
increases and companies hoard their cash or return excess funds to shareholders
– who are rich anyway.
Reference
America’s getting $10 trillion in tax cuts, and 20% of
them are going to the richest 1%
By Emily
Stewart (July 11, 2018) – www.vox.com
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