A New Report Shows Just How Much the Republican Tax Plan Benefits the Richest Americans

The top 1 percent will receive 83 percent of all tax benefits in 2027.

Tom/CQ Rollcall/Newscom/ZUMA

Let our journalists help you make sense of the noise: Subscribe to the Mother Jones Daily newsletter and get a recap of news that matters.

Over the weekend, President Donald Trump said the final Republican tax plan will offer “one of the great Christmas gifts” for the country’s middle class. But according to a new analysis released Monday, the bill really stuffs the stockings of the richest Americans—now and in the future.

A report from the Tax Policy Center, a joint venture of the Brookings Institution and the Urban Institute, found that while Americans from all income levels will see an average reduction in taxes in 2018 and 2025, most benefits will go to wealthy Americans. Households earning less than $25,000 would see an average tax cut of $60 in 2018, and middle-class households would see an average cut of $900; meanwhile, roughly two-thirds of the benefits will go to the top 20 percent of earners. In 2018, the top 1 percent of households would see an average tax cut of $51,000, a number that only grows over time. 

Tax Policy Center

After 2025, the year when the individual tax provisions are set to expire, the average tax cuts for all go away. In 2027, households earning less than $28,000 would see an average tax increase of $30, while the top 1 percent of households would receive a $20,660 cut. On average, the top 0.1 percent would get a benefit of $148,260.

In 2027, the majority of Americans will see a tax hike—and the top 1 percent of earners will receive 83 percent of all tax benefits. And remember the middle class? About 70 percent of households in the middle quintile of earners would see tax hikes, as opposed to 23 percent of those in the top 1 percent. 

The study, issued a day before lawmakers are set to start voting on the Republican tax plan, didn’t take into account the bill’s intention to repeal the Obamacare individual mandate, a move that the Congressional Budget Office expects will raise premiums and cause 13 million people to lose health insurance over the course of a decade. 

DOES IT FEEL LIKE POLITICS IS AT A BREAKING POINT?

Headshot of Editor in Chief of Mother Jones, Clara Jeffery

It sure feels that way to me, and here at Mother Jones, we’ve been thinking a lot about what journalism needs to do differently, and how we can have the biggest impact.

We kept coming back to one word: corruption. Democracy and the rule of law being undermined by those with wealth and power for their own gain. So we're launching an ambitious Mother Jones Corruption Project to do deep, time-intensive reporting on systemic corruption, and asking the MoJo community to help crowdfund it.

We aim to hire, build a team, and give them the time and space needed to understand how we got here and how we might get out. We want to dig into the forces and decisions that have allowed massive conflicts of interest, influence peddling, and win-at-all-costs politics to flourish.

It's unlike anything we've done, and we have seed funding to get started, but we're looking to raise $500,000 from readers by July when we'll be making key budgeting decisions—and the more resources we have by then, the deeper we can dig. If our plan sounds good to you, please help kickstart it with a tax-deductible donation today.

Thanks for reading—whether or not you can pitch in today, or ever, I'm glad you're with us.

Signed by Clara Jeffery

Clara Jeffery, Editor-in-Chief

payment methods

We Recommend

Latest