Tax Cuts Favor The Wealthy
House Republicans say the tax-cut package approved Tuesday by the Ways and Means Committee will be a boon to middle-class families. But Democrats say the plan is a giveaway to the rich. So who’s right?
According to two of three yardsticks used in a study by the congressional Joint Committee on Taxation, a non-partisan unit, the verdict favors the Democrats.
The study shows households with incomes below $50,000 would receive average tax cuts ranging from $11 to $432 annually while households with incomes above $200,000 would get breaks averaging $4,605.
The joint tax study shows that wealthier taxpayers would receive the biggest dollar savings from the tax cuts and also would experience the largest reduction in their overall federal tax rates.