Data from the IRS show that President Donald Trump’s tax cuts, known as the Tax Cuts and Jobs Act, helped lower- and middle-income households the most, according to a report by the Heartland Institute. Moreover, it led to “lower average income tax rates for taxpayers in every income bracket.” The information was based on a comparison of tax returns between 2017 to 2018, the first year the law went into effect.
According to the Heartland Institute, taxpayers with an adjusted gross income between $40,000 to $50,000 received an average tax cut of 18.2% (after accounting for all tax deductions and credits) from the Tax Cut and Jobs Act. Additionally, the legislation seemed to improve the socioeconomic status of many. Data show that taxpayers with an "adjusted gross income of $1 to $25,000 decreased by more than 2 million in just one year, while the number of households reporting incomes higher than $25,000 increased in every income bracket," according to the Heartland Institute.
Furthermore, despite all the propaganda Democrats advanced claiming the bill was a tax cut for the wealthy, data showed that "higher-income earners paid an even larger share of the total tax burden in 2018 than they did in 2017," according to the Heartland Institute. For example, taxpayers who earned more than $500,000 paid 41.5% of total income taxes in 2018. Comparatively, in 2017, this demographic was responsible for 38.9%.
The Heartland Institute even compiled a list of claims made by House Speaker Nancy Pelosi about the bill.
In November 2017, Pelosi claimed, “Despite Republicans’ empty promises to cut taxes for middle-class working families, it’s clear that the GOP tax plan for the wealthiest is rich indeed.” Yet, the aforementioned date showed this was a lie.
Later, Pelosi inferred the TCJA was a scam and manipulation.
“The truth is already catching up with the GOP’s snake oil pitch,” Pelosi said. “Instead of pushing a deficit-exploding handout to corporations and the wealthy that increases taxes on millions of hard-working families, Republicans must join Democrats to work on bipartisan tax reform that puts the middle class first.”
Many will remember Nancy Pelosi infamously tearing up a speech while sitting behind Trump during his State of the Union speech in January 2020. She claimed she did so because Trump’s speech was filled with lies. However, Pelosi doesn’t hold herself to such standards of truth.
Remember this the next time you hear Pelosi or President Joe Biden talk about anything.