Mr. Anson Avery’s letter of Sept. 2, 2018, states that the “Tax Cuts & Job Act” of 2017 (TCJA) gave the biggest percentage of tax cuts to the middle class.
His conclusion surprised me and was contrary to my understanding of the TCJA. Because I practiced tax law in Spokane for 40 years, and since my retirement have volunteered as a Certified Advanced Income Tax Return Preparer for the IRS’ Tax Counseling for the Elderly Program at local public libraries during tax season, this topic interests me.
The Economic Policy Institute, the nation’s premier research institute studying the effect of policy on the living standards of American families, recently issued this opinion on the TCJA: “It will deliver the vast majority of its direct benefits to the richest households; claims that large benefits will trickle down through indirect channels to low- and middle-income families are clearly incorrect.” The EPI report also notes “the largest and only permanent cut in taxes stemming from the TCJA is a cut to corporate tax rates.”
For more detail, I refer you to EPI, “The Likely Economic Effects of the TCJA,” June 1, 2018.